Colour Life Services Group Co., Limited
Colour Life Services Group Co., Limited Fundamental Analysis
Colour Life Services Group Co., Limited (1778.HK) shows moderate financial fundamentals with a PE ratio of 13.42, profit margin of 1.13%, and ROE of 0.54%. The company generates $2.2B in annual revenue with strong year-over-year growth of 28.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 1778.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1778.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1778.HK trades at attractive valuation levels.
Growth Score
Moderate1778.HK shows steady but slowing expansion.
Financial Health Score
Excellent1778.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1778.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1778.HK Expensive or Cheap?
P/E Ratio
1778.HK trades at 13.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1778.HK's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Colour Life Services Group Co., Limited at 0.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.88 times EBITDA. This signals the market has high growth expectations.
How Well Does 1778.HK Make Money?
Net Profit Margin
For every $100 in sales, Colour Life Services Group Co., Limited keeps $1.13 as profit after all expenses.
Operating Margin
Core operations generate 3.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.54 in profit for every $100 of shareholder equity.
ROA
Colour Life Services Group Co., Limited generates $0.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Colour Life Services Group Co., Limited produces operating cash flow of $275.63M, showing steady but balanced cash generation.
Free Cash Flow
Colour Life Services Group Co., Limited generates strong free cash flow of $272.56M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.15 in free cash annually.
FCF Yield
1778.HK converts 79.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
567.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How 1778.HK Stacks Against Its Sector Peers
| Metric | 1778.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.42 | 23.54 | Better (Cheaper) |
| ROE | 0.54% | 687.00% | Weak |
| Net Margin | 1.13% | -37584.00% (disorted) | Weak |
| Debt/Equity | 0.00 | -20.90 (disorted) | Distorted |
| Current Ratio | 567.97 | 16.59 | Strong Liquidity |
| ROA | 0.39% | -931.00% (disorted) | Weak |
1778.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Colour Life Services Group Co., Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-53.53%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-96.52%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-84.64%
Industry Style: Income, Inflation Hedge, REIT
Declining