Aluminum Corporation of China Limited
Aluminum Corporation of China Limited Fundamental Analysis
Aluminum Corporation of China Limited (2600.HK) shows moderate financial fundamentals with a PE ratio of 10.61, profit margin of 5.28%, and ROE of 22.02%. The company generates $303.1B in annual revenue with moderate year-over-year growth of 5.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.8/100 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 2600.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2600.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2600.HK trades at attractive valuation levels.
Growth Score
Excellent2600.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent2600.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate2600.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2600.HK Expensive or Cheap?
P/E Ratio
2600.HK trades at 10.61 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2600.HK's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Aluminum Corporation of China Limited at 2.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.69 times EBITDA. This is generally considered low.
How Well Does 2600.HK Make Money?
Net Profit Margin
For every $100 in sales, Aluminum Corporation of China Limited keeps $5.28 as profit after all expenses.
Operating Margin
Core operations generate 11.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.02 in profit for every $100 of shareholder equity.
ROA
Aluminum Corporation of China Limited generates $7.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aluminum Corporation of China Limited generates limited operating cash flow of $29.40B, signaling weaker underlying cash strength.
Free Cash Flow
Aluminum Corporation of China Limited produces free cash flow of $25.80B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.50 in free cash annually.
FCF Yield
2600.HK converts 15.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 2600.HK Stacks Against Its Sector Peers
| Metric | 2600.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.61 | 23.49 | Better (Cheaper) |
| ROE | 22.02% | 883.00% | Weak |
| Net Margin | 5.28% | -94454.00% (disorted) | Weak |
| Debt/Equity | 0.44 | 0.51 | Neutral |
| Current Ratio | 1.36 | 5.14 | Neutral |
| ROA | 7.03% | -6300.00% (disorted) | Weak |
2600.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 Aluminum Corporation of China Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.70%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
1342.66%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
161.05%
Industry Style: Cyclical, Commodity, Value
High Growth