China Gingko Education Group Company Limited
China Gingko Education Group Company Limited Fundamental Analysis
China Gingko Education Group Company Limited (1851.HK) shows moderate financial fundamentals with a PE ratio of 17.08, profit margin of 40.57%, and ROE of 15.20%. The company generates $0.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.4/100 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 1851.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent1851.HK demonstrates superior asset utilization.
Valuation Score
Moderate1851.HK shows balanced valuation metrics.
Growth Score
Moderate1851.HK shows steady but slowing expansion.
Financial Health Score
Moderate1851.HK shows balanced financial health with some risks.
Profitability Score
Excellent1851.HK achieves industry-leading margins.
Key Financial Metrics
Is 1851.HK Expensive or Cheap?
P/E Ratio
1851.HK trades at 17.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 1851.HK's PEG of 3.06 indicates potential overvaluation.
Price to Book
The market values China Gingko Education Group Company Limited at 2.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.94 times EBITDA. This signals the market has high growth expectations.
How Well Does 1851.HK Make Money?
Net Profit Margin
For every $100 in sales, China Gingko Education Group Company Limited keeps $40.57 as profit after all expenses.
Operating Margin
Core operations generate 42.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.20 in profit for every $100 of shareholder equity.
ROA
China Gingko Education Group Company Limited generates $10.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Gingko Education Group Company Limited generates strong operating cash flow of $201.84M, reflecting robust business health.
Free Cash Flow
China Gingko Education Group Company Limited generates strong free cash flow of $111.92M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.22 in free cash annually.
FCF Yield
1851.HK converts 4.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 1851.HK Stacks Against Its Sector Peers
| Metric | 1851.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.08 | 21.25 | Better (Cheaper) |
| ROE | 15.20% | 1140.00% | Weak |
| Net Margin | 40.57% | -2869.00% (disorted) | Strong |
| Debt/Equity | 0.16 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 0.69 | 2.62 | Weak Liquidity |
| ROA | 10.19% | -587060.00% (disorted) | Strong |
1851.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Gingko Education Group Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility