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Hospital Corporation of China Limited

3869.HKHKSE
Healthcare
Medical - Care Facilities
HK$3.98
HK$-0.52(-11.56%)
Hong Kong Market opens in 48h 8m

Hospital Corporation of China Limited Fundamental Analysis

Hospital Corporation of China Limited (3869.HK) shows moderate financial fundamentals with a PE ratio of 16.93, profit margin of 9.13%, and ROE of 31.63%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.

Key Strengths

ROE31.63%
Cash Position27.29%
PEG Ratio0.04
Current Ratio1.53

Areas of Concern

No major concerns flagged.
We analyze 3869.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 43.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.

Fundamental Health Score

D
43.5/100

We analyze 3869.HK's fundamental strength across five key dimensions:

Efficiency Score

Weak

3869.HK struggles to generate sufficient returns from assets.

ROA > 10%
5.25%

Valuation Score

Excellent

3869.HK trades at attractive valuation levels.

PE < 25
16.93
PEG Ratio < 2
0.04

Growth Score

Moderate

3869.HK shows steady but slowing expansion.

Revenue Growth > 5%
N/A
EPS Growth > 10%
N/A

Financial Health Score

Moderate

3869.HK shows balanced financial health with some risks.

Debt/Equity < 1
2.01
Current Ratio > 1
1.53

Profitability Score

Moderate

3869.HK maintains healthy but balanced margins.

ROE > 15%
31.63%
Net Margin ≥ 15%
9.13%
Positive Free Cash Flow
Yes

Key Financial Metrics

Is 3869.HK Expensive or Cheap?

P/E Ratio

3869.HK trades at 16.93 times earnings. This indicates a fair valuation.

16.93

PEG Ratio

When adjusting for growth, 3869.HK's PEG of 0.04 indicates potential undervaluation.

0.04

Price to Book

The market values Hospital Corporation of China Limited at 4.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.

4.45

EV/EBITDA

Enterprise value stands at 0.31 times EBITDA. This is generally considered low.

0.31

How Well Does 3869.HK Make Money?

Net Profit Margin

For every $100 in sales, Hospital Corporation of China Limited keeps $9.13 as profit after all expenses.

9.13%

Operating Margin

Core operations generate 11.09 in profit for every $100 in revenue, before interest and taxes.

11.09%

ROE

Management delivers $31.63 in profit for every $100 of shareholder equity.

31.63%

ROA

Hospital Corporation of China Limited generates $5.25 in profit for every $100 in assets, demonstrating efficient asset deployment.

5.25%

Following the Money - Real Cash Generation

Operating Cash Flow

Hospital Corporation of China Limited produces operating cash flow of $33.07M, showing steady but balanced cash generation.

$33.07M

Free Cash Flow

Hospital Corporation of China Limited generates strong free cash flow of $31.78M, providing ample flexibility for dividends, buybacks, or growth.

$31.78M

FCF Per Share

Each share generates $0.23 in free cash annually.

$0.23

FCF Yield

3869.HK converts 31.66% of its market value into free cash.

31.66%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

16.93

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

0.04

vs 25 benchmark

P/B Ratio

Price to book value ratio

4.45

vs 25 benchmark

P/S Ratio

Price to sales ratio

0.33

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

2.009

vs 25 benchmark

Current Ratio

Current assets to current liabilities

1.53

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.32

vs 25 benchmark

ROA

Return on assets percentage

0.05

vs 25 benchmark

ROCE

Return on capital employed

0.09

vs 25 benchmark

How 3869.HK Stacks Against Its Sector Peers

Metric3869.HK ValueSector AveragePerformance
P/E Ratio16.9328.45 Better (Cheaper)
ROE31.63%763.00% Weak
Net Margin9.13%-45265.00% (disorted) Weak
Debt/Equity2.010.34 Weak (High Leverage)
Current Ratio1.532795.60 Neutral
ROA5.25%-16588.00% (disorted) Weak

3869.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Hospital Corporation of China 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: Defensive, Growth, Innovation

EPS CAGR

N/A

Industry Style: Defensive, Growth, Innovation

FCF CAGR

N/A

Industry Style: Defensive, Growth, Innovation

Fundamental Analysis FAQ