China New Higher Education Group Limited
China New Higher Education Group Limited Fundamental Analysis
China New Higher Education Group Limited (2001.HK) shows strong financial fundamentals with a PE ratio of 1.42, profit margin of 31.90%, and ROE of 17.52%. The company generates $3.0B in annual revenue with strong year-over-year growth of 13.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.8/100 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 2001.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2001.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2001.HK trades at attractive valuation levels.
Growth Score
Moderate2001.HK shows steady but slowing expansion.
Financial Health Score
Moderate2001.HK shows balanced financial health with some risks.
Profitability Score
Moderate2001.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2001.HK Expensive or Cheap?
P/E Ratio
2001.HK trades at 1.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2001.HK's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values China New Higher Education Group Limited at 0.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.04 times EBITDA. This is generally considered low.
How Well Does 2001.HK Make Money?
Net Profit Margin
For every $100 in sales, China New Higher Education Group Limited keeps $31.90 as profit after all expenses.
Operating Margin
Core operations generate 28.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.52 in profit for every $100 of shareholder equity.
ROA
China New Higher Education Group Limited generates $7.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China New Higher Education Group Limited generates limited operating cash flow of $176.23M, signaling weaker underlying cash strength.
Free Cash Flow
China New Higher Education Group Limited generates weak or negative free cash flow of $-200.81M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.10 in free cash annually.
FCF Yield
2001.HK converts -12.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 2001.HK Stacks Against Its Sector Peers
| Metric | 2001.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.42 | 22.36 | Better (Cheaper) |
| ROE | 17.52% | 1238.00% | Weak |
| Net Margin | 31.90% | -5096.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 0.39 | 2.47 | Weak Liquidity |
| ROA | 7.67% | -191998.00% (disorted) | Weak |
2001.HK outperforms its industry in 3 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 New Higher 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
114.97%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
89.95%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
80.28%
Industry Style: Defensive, Dividend, Low Volatility
High Growth