Chow Tai Fook Jewellery Group Limited
Chow Tai Fook Jewellery Group Limited Fundamental Analysis
Chow Tai Fook Jewellery Group Limited (1929.HK) shows moderate financial fundamentals with a PE ratio of 18.85, profit margin of 6.63%, and ROE of 23.29%. The company generates $88.8B in annual revenue with strong year-over-year growth of 14.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.4/100 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 1929.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1929.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1929.HK shows balanced valuation metrics.
Growth Score
Excellent1929.HK delivers strong and consistent growth momentum.
Financial Health Score
Moderate1929.HK shows balanced financial health with some risks.
Profitability Score
Moderate1929.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1929.HK Expensive or Cheap?
P/E Ratio
1929.HK trades at 18.85 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 1929.HK's PEG of 11.12 indicates potential overvaluation.
Price to Book
The market values Chow Tai Fook Jewellery Group Limited at 4.57 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.19 times EBITDA. This is generally considered low.
How Well Does 1929.HK Make Money?
Net Profit Margin
For every $100 in sales, Chow Tai Fook Jewellery Group Limited keeps $6.63 as profit after all expenses.
Operating Margin
Core operations generate 15.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.29 in profit for every $100 of shareholder equity.
ROA
Chow Tai Fook Jewellery Group Limited generates $6.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chow Tai Fook Jewellery Group Limited generates limited operating cash flow of $5.77B, signaling weaker underlying cash strength.
Free Cash Flow
Chow Tai Fook Jewellery Group Limited produces free cash flow of $5.28B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.54 in free cash annually.
FCF Yield
1929.HK converts 4.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How 1929.HK Stacks Against Its Sector Peers
| Metric | 1929.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.85 | 23.72 | Better (Cheaper) |
| ROE | 23.29% | 1091.00% | Weak |
| Net Margin | 6.63% | -627.00% (disorted) | Weak |
| Debt/Equity | 1.47 | 0.72 | Weak (High Leverage) |
| Current Ratio | 1.50 | 2.64 | Neutral |
| ROA | 6.79% | 1053.00% | Weak |
1929.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 Chow Tai Fook Jewellery Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
63.14%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
42.06%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
64.16%
Industry Style: Cyclical, Growth, Discretionary
High Growth