Chervon Holdings Limited
Chervon Holdings Limited Fundamental Analysis
Chervon Holdings Limited (2285.HK) shows moderate financial fundamentals with a PE ratio of 10.75, profit margin of 5.99%, and ROE of 9.65%. The company generates $1.6B in annual revenue with strong year-over-year growth of 29.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.4/100 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 2285.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2285.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2285.HK trades at attractive valuation levels.
Growth Score
Moderate2285.HK shows steady but slowing expansion.
Financial Health Score
Excellent2285.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2285.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2285.HK Expensive or Cheap?
P/E Ratio
2285.HK trades at 10.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2285.HK's PEG of -2.44 indicates potential undervaluation.
Price to Book
The market values Chervon Holdings Limited at 1.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.24 times EBITDA. This is generally considered low.
How Well Does 2285.HK Make Money?
Net Profit Margin
For every $100 in sales, Chervon Holdings Limited keeps $5.99 as profit after all expenses.
Operating Margin
Core operations generate 7.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.65 in profit for every $100 of shareholder equity.
ROA
Chervon Holdings Limited generates $5.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chervon Holdings Limited generates limited operating cash flow of $99.23M, signaling weaker underlying cash strength.
Free Cash Flow
Chervon Holdings Limited produces free cash flow of $53.82M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.11 in free cash annually.
FCF Yield
2285.HK converts 5.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 2285.HK Stacks Against Its Sector Peers
| Metric | 2285.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.75 | 25.85 | Better (Cheaper) |
| ROE | 9.65% | 1270.00% | Weak |
| Net Margin | 5.99% | -41768.00% (disorted) | Weak |
| Debt/Equity | 0.29 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.18 | 10.04 | Strong Liquidity |
| ROA | 5.29% | -1493983.00% (disorted) | Weak |
2285.HK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chervon Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
63.56%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
157.50%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
229.57%
Industry Style: Cyclical, Value, Infrastructure
High Growth