SouthGobi Resources Ltd.
SouthGobi Resources Ltd. Fundamental Analysis
SouthGobi Resources Ltd. (1878.HK) shows strong financial fundamentals with a PE ratio of -0.47, profit margin of -23.56%, and ROE of 88.32%. The company generates $0.6B in annual revenue with strong year-over-year growth of 23.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.6/100 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 1878.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1878.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1878.HK trades at attractive valuation levels.
Growth Score
Moderate1878.HK shows steady but slowing expansion.
Financial Health Score
Moderate1878.HK shows balanced financial health with some risks.
Profitability Score
Weak1878.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1878.HK Expensive or Cheap?
P/E Ratio
1878.HK trades at -0.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1878.HK's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values SouthGobi Resources Ltd. at -0.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.79 times EBITDA. This is generally considered low.
How Well Does 1878.HK Make Money?
Net Profit Margin
For every $100 in sales, SouthGobi Resources Ltd. keeps $-23.56 as profit after all expenses.
Operating Margin
Core operations generate -1.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $88.32 in profit for every $100 of shareholder equity.
ROA
SouthGobi Resources Ltd. generates $-41.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SouthGobi Resources Ltd. produces operating cash flow of $139.41M, showing steady but balanced cash generation.
Free Cash Flow
SouthGobi Resources Ltd. generates weak or negative free cash flow of $-11.79M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.04 in free cash annually.
FCF Yield
1878.HK converts -16.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.88
vs 25 benchmark
ROA
Return on assets percentage
-0.41
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 1878.HK Stacks Against Its Sector Peers
| Metric | 1878.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.47 | 21.49 | Better (Cheaper) |
| ROE | 88.32% | 996.00% | Weak |
| Net Margin | -23.56% | -59610.00% (disorted) | Weak |
| Debt/Equity | -1.20 | -0.48 (disorted) | Distorted |
| Current Ratio | 0.26 | 5.15 | Weak Liquidity |
| ROA | -41.01% | -2041.00% (disorted) | Weak |
1878.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SouthGobi Resources Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
551.55%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-685.65%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
88.76%
Industry Style: Cyclical, Value, Commodity
High Growth