China Life Insurance Company Limited Fundamental Analysis
China Life Insurance Company Limited Fundamental Analysis
China Life Insurance Company Limited (2628.HK) shows moderate financial fundamentals with a PE ratio of 14.73, profit margin of 11.64%, and ROE of 8.31%. The company generates $650.6B 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 64.4/100 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 2628.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2628.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2628.HK trades at attractive valuation levels.
Growth Score
Moderate2628.HK shows steady but slowing expansion.
Financial Health Score
Moderate2628.HK shows balanced financial health with some risks.
Profitability Score
Weak2628.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2628.HK Expensive or Cheap?
P/E Ratio
2628.HK trades at 14.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2628.HK's PEG of -0.52 indicates potential undervaluation.
Price to Book
The market values China Life Insurance Company Limited at 1.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 31.35 times EBITDA. This signals the market has high growth expectations.
How Well Does 2628.HK Make Money?
Net Profit Margin
For every $100 in sales, China Life Insurance Company Limited keeps $11.64 as profit after all expenses.
Operating Margin
Core operations generate 9.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.31 in profit for every $100 of shareholder equity.
ROA
China Life Insurance Company Limited generates $0.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Life Insurance Company Limited generates strong operating cash flow of $869.38B, reflecting robust business health.
Free Cash Flow
China Life Insurance Company Limited generates strong free cash flow of $863.20B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.83 in free cash annually.
FCF Yield
2628.HK converts 47.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 2628.HK Stacks Against Its Sector Peers
| Metric | 2628.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.73 | 21.28 | Better (Cheaper) |
| ROE | 8.31% | 635.00% | Weak |
| Net Margin | 11.64% | -950.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 1.51 | Strong (Low Leverage) |
| Current Ratio | 0.02 | 924.12 | Weak Liquidity |
| ROA | 0.61% | -1008.00% (disorted) | Weak |
2628.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Life Insurance Company Limited'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: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical