China Dongxiang (Group) Co., Ltd.
China Dongxiang (Group) Co., Ltd. Fundamental Analysis
China Dongxiang (Group) Co., Ltd. (3818.HK) shows moderate financial fundamentals with a PE ratio of 12.43, profit margin of 13.17%, and ROE of 1.80%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 3.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3818.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3818.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3818.HK trades at attractive valuation levels.
Growth Score
Weak3818.HK faces weak or negative growth trends.
Financial Health Score
Excellent3818.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate3818.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 3818.HK Expensive or Cheap?
P/E Ratio
3818.HK trades at 12.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3818.HK's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values China Dongxiang (Group) Co., Ltd. at 0.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 31.69 times EBITDA. This signals the market has high growth expectations.
How Well Does 3818.HK Make Money?
Net Profit Margin
For every $100 in sales, China Dongxiang (Group) Co., Ltd. keeps $13.17 as profit after all expenses.
Operating Margin
Core operations generate 14.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.80 in profit for every $100 of shareholder equity.
ROA
China Dongxiang (Group) Co., Ltd. generates $1.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Dongxiang (Group) Co., Ltd. produces operating cash flow of $224.88M, showing steady but balanced cash generation.
Free Cash Flow
China Dongxiang (Group) Co., Ltd. generates strong free cash flow of $152.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
3818.HK converts 7.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.009
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 3818.HK Stacks Against Its Sector Peers
| Metric | 3818.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.43 | 24.20 | Better (Cheaper) |
| ROE | 1.80% | 1190.00% | Weak |
| Net Margin | 13.17% | 2642.00% | Weak |
| Debt/Equity | 0.00 | 0.70 | Strong (Low Leverage) |
| Current Ratio | 6.82 | 2.84 | Strong Liquidity |
| ROA | 1.68% | -8310.00% (disorted) | Weak |
3818.HK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Dongxiang (Group) Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.50%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
-300.43%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
244.71%
Industry Style: Cyclical, Growth, Discretionary
High Growth