Greentown China Holdings Limited
Greentown China Holdings Limited Fundamental Analysis
Greentown China Holdings Limited (3900.HK) shows weak financial fundamentals with a PE ratio of 275.01, profit margin of 0.05%, and ROE of 0.21%. The company generates $153.8B in annual revenue with strong year-over-year growth of 20.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3900.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3900.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak3900.HK trades at a premium to fair value.
Growth Score
Moderate3900.HK shows steady but slowing expansion.
Financial Health Score
Moderate3900.HK shows balanced financial health with some risks.
Profitability Score
Moderate3900.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 3900.HK Expensive or Cheap?
P/E Ratio
3900.HK trades at 275.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 3900.HK's PEG of 3.15 indicates potential overvaluation.
Price to Book
The market values Greentown China Holdings Limited at 0.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.80 times EBITDA. This is generally considered low.
How Well Does 3900.HK Make Money?
Net Profit Margin
For every $100 in sales, Greentown China Holdings Limited keeps $0.05 as profit after all expenses.
Operating Margin
Core operations generate 5.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.21 in profit for every $100 of shareholder equity.
ROA
Greentown China Holdings Limited generates $0.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Greentown China Holdings Limited generates limited operating cash flow of $12.47B, signaling weaker underlying cash strength.
Free Cash Flow
Greentown China Holdings Limited produces free cash flow of $12.28B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.83 in free cash annually.
FCF Yield
3900.HK converts 60.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
275.007
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.002
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 3900.HK Stacks Against Its Sector Peers
| Metric | 3900.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 275.01 | 23.45 | Worse (Expensive) |
| ROE | 0.21% | 708.00% | Weak |
| Net Margin | 0.05% | -37558.00% (disorted) | Weak |
| Debt/Equity | 3.80 | -20.95 (disorted) | Distorted |
| Current Ratio | 5.74 | 16.52 | Strong Liquidity |
| ROA | 0.02% | -929.00% (disorted) | Weak |
3900.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 Greentown China Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
120.03%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
14.35%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
401.42%
Industry Style: Income, Inflation Hedge, REIT
High Growth