Kingsoft Corporation Limited Fundamental Analysis (HKSE: 3888.HK)
Kingsoft Corporation Limited Fundamental Analysis (HKSE: 3888.HK)
Kingsoft Corporation Limited (HKSE: 3888.HK) shows moderate financial fundamentals with a PE ratio of 10.10, profit margin of 28.77%, and ROE of 10.86%. The company generates $9.6B 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 72.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 3888.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3888.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3888.HK trades at attractive valuation levels.
Growth Score
Moderate3888.HK shows steady but slowing expansion.
Financial Health Score
Excellent3888.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate3888.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 3888.HK Expensive or Cheap?
P/E Ratio
3888.HK trades at 10.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3888.HK's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Kingsoft Corporation Limited at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 24.85 times EBITDA. This signals the market has high growth expectations.
How Well Does 3888.HK Make Money?
Net Profit Margin
For every $100 in sales, Kingsoft Corporation Limited keeps $28.77 as profit after all expenses.
Operating Margin
Core operations generate 13.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.86 in profit for every $100 of shareholder equity.
ROA
Kingsoft Corporation Limited generates $6.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kingsoft Corporation Limited generates strong operating cash flow of $2.44B, reflecting robust business health.
Free Cash Flow
Kingsoft Corporation Limited generates strong free cash flow of $2.15B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.59 in free cash annually.
FCF Yield
3888.HK converts 7.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 3888.HK Stacks Against Its Sector Peers
| Metric | 3888.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.10 | 35.36 | Better (Cheaper) |
| ROE | 10.86% | 745.00% | Weak |
| Net Margin | 28.77% | -137640.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 5.83 | 3.37 | Strong Liquidity |
| ROA | 6.77% | 276.00% | Weak |
3888.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 Kingsoft Corporation 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: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta