Zhongzhi Pharmaceutical Holdings Limited
Zhongzhi Pharmaceutical Holdings Limited Fundamental Analysis
Zhongzhi Pharmaceutical Holdings Limited (3737.HK) shows weak financial fundamentals with a PE ratio of 35.31, profit margin of 1.00%, and ROE of 1.57%. The company generates $1.7B in annual revenue with moderate year-over-year growth of 8.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3737.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3737.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate3737.HK shows balanced valuation metrics.
Growth Score
Moderate3737.HK shows steady but slowing expansion.
Financial Health Score
Excellent3737.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate3737.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 3737.HK Expensive or Cheap?
P/E Ratio
3737.HK trades at 35.31 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 3737.HK's PEG of -2.33 indicates potential undervaluation.
Price to Book
The market values Zhongzhi Pharmaceutical Holdings Limited at 0.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.52 times EBITDA. This is generally considered low.
How Well Does 3737.HK Make Money?
Net Profit Margin
For every $100 in sales, Zhongzhi Pharmaceutical Holdings Limited keeps $1.00 as profit after all expenses.
Operating Margin
Core operations generate 1.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.57 in profit for every $100 of shareholder equity.
ROA
Zhongzhi Pharmaceutical Holdings Limited generates $0.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zhongzhi Pharmaceutical Holdings Limited produces operating cash flow of $193.14M, showing steady but balanced cash generation.
Free Cash Flow
Zhongzhi Pharmaceutical Holdings Limited produces free cash flow of $130.73M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.15 in free cash annually.
FCF Yield
3737.HK converts 22.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 3737.HK Stacks Against Its Sector Peers
| Metric | 3737.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.31 | 28.45 | Worse (Expensive) |
| ROE | 1.57% | 763.00% | Weak |
| Net Margin | 1.00% | -45265.00% (disorted) | Weak |
| Debt/Equity | 0.21 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 1.60 | 2795.60 | Neutral |
| ROA | 0.94% | -16588.00% (disorted) | Weak |
3737.HK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zhongzhi Pharmaceutical Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.65%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-18.17%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
6.59%
Industry Style: Defensive, Growth, Innovation
Growing