China Xinhua Education Group Limited
China Xinhua Education Group Limited Fundamental Analysis
China Xinhua Education Group Limited (2779.HK) shows moderate financial fundamentals with a PE ratio of 1.93, profit margin of 57.02%, and ROE of 9.71%. The company generates $0.7B in annual revenue with weak year-over-year growth of 0.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.6/100 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 2779.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2779.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2779.HK trades at attractive valuation levels.
Growth Score
Moderate2779.HK shows steady but slowing expansion.
Financial Health Score
Excellent2779.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate2779.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2779.HK Expensive or Cheap?
P/E Ratio
2779.HK trades at 1.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2779.HK's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values China Xinhua Education Group Limited at 0.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.73 times EBITDA. This is generally considered low.
How Well Does 2779.HK Make Money?
Net Profit Margin
For every $100 in sales, China Xinhua Education Group Limited keeps $57.02 as profit after all expenses.
Operating Margin
Core operations generate 60.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.71 in profit for every $100 of shareholder equity.
ROA
China Xinhua Education Group Limited generates $7.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Xinhua Education Group Limited generates strong operating cash flow of $555.66M, reflecting robust business health.
Free Cash Flow
China Xinhua Education Group Limited generates strong free cash flow of $530.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
2779.HK converts 73.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How 2779.HK Stacks Against Its Sector Peers
| Metric | 2779.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.93 | 22.36 | Better (Cheaper) |
| ROE | 9.71% | 1238.00% | Weak |
| Net Margin | 57.02% | -5096.00% (disorted) | Strong |
| Debt/Equity | 0.15 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 4.06 | 2.47 | Strong Liquidity |
| ROA | 7.91% | -191998.00% (disorted) | Weak |
2779.HK outperforms its industry in 4 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 Xinhua Education Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.05%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
22.00%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
214.49%
Industry Style: Defensive, Dividend, Low Volatility
High Growth