Hospital Corporation of China Limited Fundamental Analysis
Hospital Corporation of China Limited Fundamental Analysis
Hospital Corporation of China Limited (3869.HK) shows moderate financial fundamentals with a PE ratio of 2.98, profit margin of 9.27%, and ROE of 26.98%. The company generates $1.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3869.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3869.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3869.HK trades at attractive valuation levels.
Growth Score
Moderate3869.HK shows steady but slowing expansion.
Financial Health Score
Moderate3869.HK shows balanced financial health with some risks.
Profitability Score
Moderate3869.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 3869.HK Expensive or Cheap?
P/E Ratio
3869.HK trades at 2.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3869.HK's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Hospital Corporation of China Limited at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.07 times EBITDA. This is generally considered low.
How Well Does 3869.HK Make Money?
Net Profit Margin
For every $100 in sales, Hospital Corporation of China Limited keeps $9.27 as profit after all expenses.
Operating Margin
Core operations generate 8.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.98 in profit for every $100 of shareholder equity.
ROA
Hospital Corporation of China Limited generates $5.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hospital Corporation of China Limited produces operating cash flow of $205.17M, showing steady but balanced cash generation.
Free Cash Flow
Hospital Corporation of China Limited generates strong free cash flow of $184.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.35 in free cash annually.
FCF Yield
3869.HK converts 45.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How 3869.HK Stacks Against Its Sector Peers
| Metric | 3869.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.98 | 29.63 | Better (Cheaper) |
| ROE | 26.98% | 223.00% | Weak |
| Net Margin | 9.27% | -38669.00% (disorted) | Weak |
| Debt/Equity | 2.10 | 0.82 | Weak (High Leverage) |
| Current Ratio | 1.62 | 4.30 | Neutral |
| ROA | 5.29% | -379.00% (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