CNGR Advanced Material Co., Ltd. Fundamental Analysis (HKSE: 2579.HK)
CNGR Advanced Material Co., Ltd. Fundamental Analysis (HKSE: 2579.HK)
CNGR Advanced Material Co., Ltd. (HKSE: 2579.HK) shows moderate financial fundamentals with a PE ratio of 22.36, profit margin of 3.43%, and ROE of 8.14%. The company generates $50.1B in annual revenue with strong year-over-year growth of 19.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2579.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2579.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2579.HK trades at attractive valuation levels.
Growth Score
Moderate2579.HK shows steady but slowing expansion.
Financial Health Score
Excellent2579.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2579.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2579.HK Expensive or Cheap?
P/E Ratio
2579.HK trades at 22.36 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2579.HK's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values CNGR Advanced Material Co., Ltd. at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.25 times EBITDA. This is generally considered low.
How Well Does 2579.HK Make Money?
Net Profit Margin
For every $100 in sales, CNGR Advanced Material Co., Ltd. keeps $3.43 as profit after all expenses.
Operating Margin
Core operations generate 5.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.14 in profit for every $100 of shareholder equity.
ROA
CNGR Advanced Material Co., Ltd. generates $2.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CNGR Advanced Material Co., Ltd. generates limited operating cash flow of $-72.77M, signaling weaker underlying cash strength.
Free Cash Flow
CNGR Advanced Material Co., Ltd. generates weak or negative free cash flow of $-2.33B, restricting financial flexibility.
FCF Per Share
Each share generates $-2.30 in free cash annually.
FCF Yield
2579.HK converts -11.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How 2579.HK Stacks Against Its Sector Peers
| Metric | 2579.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.36 | 29.34 | Better (Cheaper) |
| ROE | 8.14% | 1104.00% | Weak |
| Net Margin | 3.43% | -25189.00% (disorted) | Weak |
| Debt/Equity | 0.94 | 0.95 | Neutral |
| Current Ratio | 1.43 | 21.76 | Neutral |
| ROA | 2.18% | -1328228.00% (disorted) | Weak |
2579.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CNGR Advanced Material Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
102.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
40.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
169.88%
Industry Style: Cyclical, Value, Infrastructure
High Growth