Guotai Junan Securities Co., Ltd.
Guotai Junan Securities Co., Ltd. Fundamental Analysis
Guotai Junan Securities Co., Ltd. (2611.HK) shows strong financial fundamentals with a PE ratio of 6.52, profit margin of 28.00%, and ROE of 10.97%. The company generates $140.3B in annual revenue with strong year-over-year growth of 42.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 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 2611.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2611.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2611.HK trades at attractive valuation levels.
Growth Score
Excellent2611.HK delivers strong and consistent growth momentum.
Financial Health Score
Moderate2611.HK shows balanced financial health with some risks.
Profitability Score
Weak2611.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2611.HK Expensive or Cheap?
P/E Ratio
2611.HK trades at 6.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2611.HK's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Guotai Junan Securities Co., Ltd. at 0.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -12.14 times EBITDA. This is generally considered low.
How Well Does 2611.HK Make Money?
Net Profit Margin
For every $100 in sales, Guotai Junan Securities Co., Ltd. keeps $28.00 as profit after all expenses.
Operating Margin
Core operations generate 46.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.97 in profit for every $100 of shareholder equity.
ROA
Guotai Junan Securities Co., Ltd. generates $1.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Guotai Junan Securities Co., Ltd. generates limited operating cash flow of $472.63M, signaling weaker underlying cash strength.
Free Cash Flow
Guotai Junan Securities Co., Ltd. generates weak or negative free cash flow of $-2.22B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.10 in free cash annually.
FCF Yield
2611.HK converts -0.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 2611.HK Stacks Against Its Sector Peers
| Metric | 2611.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.52 | 18.56 | Better (Cheaper) |
| ROE | 10.97% | 828.00% | Weak |
| Net Margin | 28.00% | -175.00% (disorted) | Strong |
| Debt/Equity | 3.10 | 1.00 | Weak (High Leverage) |
| Current Ratio | 1.55 | 663.54 | Neutral |
| ROA | 1.47% | -21308.00% (disorted) | Weak |
2611.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Guotai Junan Securities Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.62%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
54.44%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
57.88%
Industry Style: Value, Dividend, Cyclical
High Growth