Wenzhou Kangning Hospital Co., Ltd.
Wenzhou Kangning Hospital Co., Ltd. Fundamental Analysis
Wenzhou Kangning Hospital Co., Ltd. (2120.HK) shows weak financial fundamentals with a PE ratio of 10.33, profit margin of 3.38%, and ROE of 4.46%. The company generates $1.5B in annual revenue with weak year-over-year growth of -5.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2120.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2120.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2120.HK shows balanced valuation metrics.
Growth Score
Weak2120.HK faces weak or negative growth trends.
Financial Health Score
Excellent2120.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2120.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2120.HK Expensive or Cheap?
P/E Ratio
2120.HK trades at 10.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2120.HK's PEG of 2.75 indicates potential overvaluation.
Price to Book
The market values Wenzhou Kangning Hospital Co., Ltd. at 0.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.12 times EBITDA. This is generally considered low.
How Well Does 2120.HK Make Money?
Net Profit Margin
For every $100 in sales, Wenzhou Kangning Hospital Co., Ltd. keeps $3.38 as profit after all expenses.
Operating Margin
Core operations generate 7.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.46 in profit for every $100 of shareholder equity.
ROA
Wenzhou Kangning Hospital Co., Ltd. generates $1.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wenzhou Kangning Hospital Co., Ltd. generates strong operating cash flow of $412.84M, reflecting robust business health.
Free Cash Flow
Wenzhou Kangning Hospital Co., Ltd. generates strong free cash flow of $234.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.33 in free cash annually.
FCF Yield
2120.HK converts 47.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 2120.HK Stacks Against Its Sector Peers
| Metric | 2120.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.33 | 28.45 | Better (Cheaper) |
| ROE | 4.46% | 763.00% | Weak |
| Net Margin | 3.38% | -45265.00% (disorted) | Weak |
| Debt/Equity | 0.39 | 0.34 | Neutral |
| Current Ratio | 1.31 | 2795.60 | Neutral |
| ROA | 1.79% | -16588.00% (disorted) | Weak |
2120.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 Wenzhou Kangning Hospital Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.53%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-4.33%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
116.16%
Industry Style: Defensive, Growth, Innovation
High Growth