Weichai Power Co., Ltd. Fundamental Analysis
Weichai Power Co., Ltd. (2338.HK) shows weak financial fundamentals with a PE ratio of 15.99, profit margin of 4.78%, and ROE of 12.12%. The company generates $237.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.9/100 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 2338.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2338.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2338.HK trades at attractive valuation levels.
Growth Score
Moderate2338.HK shows steady but slowing expansion.
Financial Health Score
Excellent2338.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2338.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2338.HK Expensive or Cheap?
P/E Ratio
2338.HK trades at 15.99 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2338.HK's PEG of -1.09 indicates potential undervaluation.
Price to Book
The market values Weichai Power Co., Ltd. at 2.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.26 times EBITDA. This signals the market has high growth expectations.
How Well Does 2338.HK Make Money?
Net Profit Margin
For every $100 in sales, Weichai Power Co., Ltd. keeps $4.78 as profit after all expenses.
Operating Margin
Core operations generate 7.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.12 in profit for every $100 of shareholder equity.
ROA
Weichai Power Co., Ltd. generates $3.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Weichai Power Co., Ltd. produces operating cash flow of $31.23B, showing steady but balanced cash generation.
Free Cash Flow
Weichai Power Co., Ltd. generates strong free cash flow of $24.88B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.88 in free cash annually.
FCF Yield
2338.HK converts 11.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 2338.HK Stacks Against Its Sector Peers
| Metric | 2338.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.99 | 30.08 | Better (Cheaper) |
| ROE | 12.12% | 1167.00% | Weak |
| Net Margin | 4.78% | -20937.00% (disorted) | Weak |
| Debt/Equity | 0.29 | 0.37 | Strong (Low Leverage) |
| Current Ratio | 1.20 | 24.38 | Neutral |
| ROA | 3.02% | -1320851.00% (disorted) | Weak |
2338.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 Weichai Power Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure