Simcere Pharmaceutical Group Limited
Simcere Pharmaceutical Group Limited Fundamental Analysis
Simcere Pharmaceutical Group Limited (2096.HK) shows moderate financial fundamentals with a PE ratio of 22.35, profit margin of 17.38%, and ROE of 16.00%. The company generates $7.9B in annual revenue with strong year-over-year growth of 13.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 2096.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2096.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2096.HK trades at attractive valuation levels.
Growth Score
Excellent2096.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent2096.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent2096.HK achieves industry-leading margins.
Key Financial Metrics
Is 2096.HK Expensive or Cheap?
P/E Ratio
2096.HK trades at 22.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2096.HK's PEG of 0.50 indicates potential undervaluation.
Price to Book
The market values Simcere Pharmaceutical Group Limited at 3.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.33 times EBITDA. This signals the market has high growth expectations.
How Well Does 2096.HK Make Money?
Net Profit Margin
For every $100 in sales, Simcere Pharmaceutical Group Limited keeps $17.38 as profit after all expenses.
Operating Margin
Core operations generate 16.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.00 in profit for every $100 of shareholder equity.
ROA
Simcere Pharmaceutical Group Limited generates $9.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Simcere Pharmaceutical Group Limited generates limited operating cash flow of $272.97M, signaling weaker underlying cash strength.
Free Cash Flow
Simcere Pharmaceutical Group Limited generates weak or negative free cash flow of $88.58M, restricting financial flexibility.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
2096.HK converts 0.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 2096.HK Stacks Against Its Sector Peers
| Metric | 2096.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.35 | 28.31 | Better (Cheaper) |
| ROE | 16.00% | 699.00% | Weak |
| Net Margin | 17.38% | -130884.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 2.21 | 2775.16 | Strong Liquidity |
| ROA | 9.04% | -14469.00% (disorted) | Weak |
2096.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 Simcere Pharmaceutical Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.61%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
105.58%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-100.00%
Industry Style: Defensive, Growth, Innovation
Declining