Comba Telecom Systems Holdings Limited Fundamental Analysis (HKSE: 2342.HK)
Comba Telecom Systems Holdings Limited Fundamental Analysis (HKSE: 2342.HK)
Comba Telecom Systems Holdings Limited (HKSE: 2342.HK) shows weak financial fundamentals with a PE ratio of 76.11, profit margin of 0.62%, and ROE of 0.86%. The company generates $4.5B in annual revenue with weak year-over-year growth of 0.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2342.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2342.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2342.HK shows balanced valuation metrics.
Growth Score
Weak2342.HK faces weak or negative growth trends.
Financial Health Score
Excellent2342.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate2342.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2342.HK Expensive or Cheap?
P/E Ratio
2342.HK trades at 76.11 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 2342.HK's PEG of 1.43 indicates fair valuation.
Price to Book
The market values Comba Telecom Systems Holdings Limited at 0.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.09 times EBITDA. This is generally considered low.
How Well Does 2342.HK Make Money?
Net Profit Margin
For every $100 in sales, Comba Telecom Systems Holdings Limited keeps $0.62 as profit after all expenses.
Operating Margin
Core operations generate 6.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.86 in profit for every $100 of shareholder equity.
ROA
Comba Telecom Systems Holdings Limited generates $0.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Comba Telecom Systems Holdings Limited produces operating cash flow of $528.15M, showing steady but balanced cash generation.
Free Cash Flow
Comba Telecom Systems Holdings Limited generates strong free cash flow of $463.04M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.15 in free cash annually.
FCF Yield
2342.HK converts 21.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
76.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 2342.HK Stacks Against Its Sector Peers
| Metric | 2342.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 76.11 | 35.20 | Worse (Expensive) |
| ROE | 0.86% | 749.00% | Weak |
| Net Margin | 0.62% | -2813.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 1.58 | 6.19 | Neutral |
| ROA | 0.36% | 328.00% | Weak |
2342.HK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Comba Telecom Systems Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-21.76%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
115.62%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
236.60%
Industry Style: Growth, Innovation, High Beta
High Growth