Gushengtang Holdings Limited
Gushengtang Holdings Limited Fundamental Analysis
Gushengtang Holdings Limited (2273.HK) shows moderate financial fundamentals with a PE ratio of 16.55, profit margin of 11.15%, and ROE of 14.79%. The company generates $2.9B in annual revenue with strong year-over-year growth of 30.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.6/100 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 2273.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2273.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2273.HK trades at attractive valuation levels.
Growth Score
Excellent2273.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent2273.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2273.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2273.HK Expensive or Cheap?
P/E Ratio
2273.HK trades at 16.55 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2273.HK's PEG of 1.15 indicates fair valuation.
Price to Book
The market values Gushengtang Holdings Limited at 2.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.25 times EBITDA. This signals the market has high growth expectations.
How Well Does 2273.HK Make Money?
Net Profit Margin
For every $100 in sales, Gushengtang Holdings Limited keeps $11.15 as profit after all expenses.
Operating Margin
Core operations generate 13.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.79 in profit for every $100 of shareholder equity.
ROA
Gushengtang Holdings Limited generates $9.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gushengtang Holdings Limited produces operating cash flow of $561.13M, showing steady but balanced cash generation.
Free Cash Flow
Gushengtang Holdings Limited generates strong free cash flow of $468.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.07 in free cash annually.
FCF Yield
2273.HK converts 9.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 2273.HK Stacks Against Its Sector Peers
| Metric | 2273.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.55 | 28.45 | Better (Cheaper) |
| ROE | 14.79% | 763.00% | Weak |
| Net Margin | 11.15% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 2.23 | 2795.60 | Strong Liquidity |
| ROA | 9.03% | -16588.00% (disorted) | Weak |
2273.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 Gushengtang Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
209.01%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
289.90%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
213.40%
Industry Style: Defensive, Growth, Innovation
High Growth