Aux Electric Co., Ltd. Fundamental Analysis (HKSE: 2580.HK)
Aux Electric Co., Ltd. Fundamental Analysis (HKSE: 2580.HK)
Aux Electric Co., Ltd. (HKSE: 2580.HK) shows moderate financial fundamentals with a PE ratio of 5.74, profit margin of 7.44%, and ROE of 29.31%. The company generates $31.6B 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 63.5/100 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 2580.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2580.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2580.HK trades at attractive valuation levels.
Growth Score
Moderate2580.HK shows steady but slowing expansion.
Financial Health Score
Excellent2580.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate2580.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2580.HK Expensive or Cheap?
P/E Ratio
2580.HK trades at 5.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2580.HK's PEG of -0.25 indicates potential undervaluation.
Price to Book
The market values Aux Electric Co., Ltd. at 1.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.84 times EBITDA. This is generally considered low.
How Well Does 2580.HK Make Money?
Net Profit Margin
For every $100 in sales, Aux Electric Co., Ltd. keeps $7.44 as profit after all expenses.
Operating Margin
Core operations generate 7.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.31 in profit for every $100 of shareholder equity.
ROA
Aux Electric Co., Ltd. generates $7.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aux Electric Co., Ltd. generates limited operating cash flow of $3.04B, signaling weaker underlying cash strength.
Free Cash Flow
Aux Electric Co., Ltd. produces free cash flow of $1.23B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.77 in free cash annually.
FCF Yield
2580.HK converts 8.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 2580.HK Stacks Against Its Sector Peers
| Metric | 2580.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.74 | 29.55 | Better (Cheaper) |
| ROE | 29.31% | 1092.00% | Weak |
| Net Margin | 7.44% | -25130.00% (disorted) | Weak |
| Debt/Equity | 0.16 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 1.12 | 21.72 | Neutral |
| ROA | 7.11% | -1325773.00% (disorted) | Weak |
2580.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 Aux Electric 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