China Kepei Education Group Limited
China Kepei Education Group Limited Fundamental Analysis
China Kepei Education Group Limited (1890.HK) shows strong financial fundamentals with a PE ratio of 1.77, profit margin of 38.80%, and ROE of 16.67%. The company generates $2.4B in annual revenue with moderate year-over-year growth of 9.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.0/100 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 1890.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent1890.HK demonstrates superior asset utilization.
Valuation Score
Excellent1890.HK trades at attractive valuation levels.
Growth Score
Moderate1890.HK shows steady but slowing expansion.
Financial Health Score
Moderate1890.HK shows balanced financial health with some risks.
Profitability Score
Excellent1890.HK achieves industry-leading margins.
Key Financial Metrics
Is 1890.HK Expensive or Cheap?
P/E Ratio
1890.HK trades at 1.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1890.HK's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values China Kepei Education Group Limited at 0.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.56 times EBITDA. This is generally considered low.
How Well Does 1890.HK Make Money?
Net Profit Margin
For every $100 in sales, China Kepei Education Group Limited keeps $38.80 as profit after all expenses.
Operating Margin
Core operations generate 35.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.67 in profit for every $100 of shareholder equity.
ROA
China Kepei Education Group Limited generates $10.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Kepei Education Group Limited generates strong operating cash flow of $1.47B, reflecting robust business health.
Free Cash Flow
China Kepei Education Group Limited generates strong free cash flow of $543.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.27 in free cash annually.
FCF Yield
1890.HK converts 32.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How 1890.HK Stacks Against Its Sector Peers
| Metric | 1890.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.77 | 21.25 | Better (Cheaper) |
| ROE | 16.67% | 1140.00% | Weak |
| Net Margin | 38.80% | -2869.00% (disorted) | Strong |
| Debt/Equity | 0.19 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 0.70 | 2.62 | Weak Liquidity |
| ROA | 10.38% | -587060.00% (disorted) | Strong |
1890.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 Kepei Education Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
112.40%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
30.31%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-100.00%
Industry Style: Defensive, Dividend, Low Volatility
Declining