China Railway Signal & Communication Corporation Limited Fundamental Analysis
China Railway Signal & Communication Corporation Limited Fundamental Analysis
China Railway Signal & Communication Corporation Limited (3969.HK) shows moderate financial fundamentals with a PE ratio of 8.41, profit margin of 10.60%, and ROE of 7.66%. The company generates $57.5B 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 51.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 3969.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3969.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3969.HK trades at attractive valuation levels.
Growth Score
Moderate3969.HK shows steady but slowing expansion.
Financial Health Score
Excellent3969.HK maintains a strong and stable balance sheet.
Profitability Score
Weak3969.HK struggles to sustain strong margins.
Key Financial Metrics
Is 3969.HK Expensive or Cheap?
P/E Ratio
3969.HK trades at 8.41 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3969.HK's PEG of 1.00 indicates fair valuation.
Price to Book
The market values China Railway Signal & Communication Corporation Limited at 0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.36 times EBITDA. This signals the market has high growth expectations.
How Well Does 3969.HK Make Money?
Net Profit Margin
For every $100 in sales, China Railway Signal & Communication Corporation Limited keeps $10.60 as profit after all expenses.
Operating Margin
Core operations generate 11.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.66 in profit for every $100 of shareholder equity.
ROA
China Railway Signal & Communication Corporation Limited generates $3.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Railway Signal & Communication Corporation Limited generates limited operating cash flow of $2.42B, signaling weaker underlying cash strength.
Free Cash Flow
China Railway Signal & Communication Corporation Limited generates weak or negative free cash flow of $1.11B, restricting financial flexibility.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
3969.HK converts 1.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 3969.HK Stacks Against Its Sector Peers
| Metric | 3969.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.41 | 34.45 | Better (Cheaper) |
| ROE | 7.66% | 1169.00% | Weak |
| Net Margin | 10.60% | -29218.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 1.60 | 25.49 | Neutral |
| ROA | 3.11% | -1353142.00% (disorted) | Weak |
3969.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Railway Signal & Communication 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: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure