China Shineway Pharmaceutical Group Limited
China Shineway Pharmaceutical Group Limited Fundamental Analysis
China Shineway Pharmaceutical Group Limited (2877.HK) shows moderate financial fundamentals with a PE ratio of 6.85, profit margin of 30.36%, and ROE of 11.90%. The company generates $3.1B in annual revenue with weak year-over-year growth of -16.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2877.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2877.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2877.HK trades at attractive valuation levels.
Growth Score
Weak2877.HK faces weak or negative growth trends.
Financial Health Score
Excellent2877.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate2877.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2877.HK Expensive or Cheap?
P/E Ratio
2877.HK trades at 6.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2877.HK's PEG of 0.53 indicates potential undervaluation.
Price to Book
The market values China Shineway Pharmaceutical Group Limited at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.75 times EBITDA. This signals the market has high growth expectations.
How Well Does 2877.HK Make Money?
Net Profit Margin
For every $100 in sales, China Shineway Pharmaceutical Group Limited keeps $30.36 as profit after all expenses.
Operating Margin
Core operations generate 21.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.90 in profit for every $100 of shareholder equity.
ROA
China Shineway Pharmaceutical Group Limited generates $8.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Shineway Pharmaceutical Group Limited generates strong operating cash flow of $965.31M, reflecting robust business health.
Free Cash Flow
China Shineway Pharmaceutical Group Limited generates strong free cash flow of $799.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.06 in free cash annually.
FCF Yield
2877.HK converts 12.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 2877.HK Stacks Against Its Sector Peers
| Metric | 2877.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.85 | 28.45 | Better (Cheaper) |
| ROE | 11.90% | 763.00% | Weak |
| Net Margin | 30.36% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 3.71 | 2795.60 | Strong Liquidity |
| ROA | 8.76% | -16588.00% (disorted) | Weak |
2877.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 Shineway Pharmaceutical Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.05%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
72.26%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
170.03%
Industry Style: Defensive, Growth, Innovation
High Growth