Guangzhou Automobile Group Co., Ltd.
Guangzhou Automobile Group Co., Ltd. Fundamental Analysis
Guangzhou Automobile Group Co., Ltd. (2238.HK) shows weak financial fundamentals with a PE ratio of -3.57, profit margin of -6.20%, and ROE of -7.18%. The company generates $293.8B in annual revenue with weak year-over-year growth of -16.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -9.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2238.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2238.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2238.HK trades at attractive valuation levels.
Growth Score
Weak2238.HK faces weak or negative growth trends.
Financial Health Score
Excellent2238.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2238.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2238.HK Expensive or Cheap?
P/E Ratio
2238.HK trades at -3.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2238.HK's PEG of -0.04 indicates potential undervaluation.
Price to Book
The market values Guangzhou Automobile Group Co., Ltd. at 0.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.96 times EBITDA. This is generally considered low.
How Well Does 2238.HK Make Money?
Net Profit Margin
For every $100 in sales, Guangzhou Automobile Group Co., Ltd. keeps $-6.20 as profit after all expenses.
Operating Margin
Core operations generate -10.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-7.18 in profit for every $100 of shareholder equity.
ROA
Guangzhou Automobile Group Co., Ltd. generates $-3.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Guangzhou Automobile Group Co., Ltd. generates limited operating cash flow of $-34.18B, signaling weaker underlying cash strength.
Free Cash Flow
Guangzhou Automobile Group Co., Ltd. generates weak or negative free cash flow of $-36.20B, restricting financial flexibility.
FCF Per Share
Each share generates $-1.51 in free cash annually.
FCF Yield
2238.HK converts -24.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.10
vs 25 benchmark
How 2238.HK Stacks Against Its Sector Peers
| Metric | 2238.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.57 | 23.78 | Better (Cheaper) |
| ROE | -7.18% | 1098.00% | Weak |
| Net Margin | -6.20% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 1.13 | 2.64 | Neutral |
| ROA | -3.71% | -8081.00% (disorted) | Weak |
2238.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Guangzhou Automobile Group Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
79.49%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-87.63%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
2952.51%
Industry Style: Cyclical, Growth, Discretionary
High Growth