China Beststudy Education Group
China Beststudy Education Group Fundamental Analysis
China Beststudy Education Group (3978.HK) shows moderate financial fundamentals with a PE ratio of 7.73, profit margin of 15.84%, and ROE of 37.07%. The company generates $1.9B in annual revenue with weak year-over-year growth of 1.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.0/100 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 3978.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent3978.HK demonstrates superior asset utilization.
Valuation Score
Excellent3978.HK trades at attractive valuation levels.
Growth Score
Weak3978.HK faces weak or negative growth trends.
Financial Health Score
Excellent3978.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent3978.HK achieves industry-leading margins.
Key Financial Metrics
Is 3978.HK Expensive or Cheap?
P/E Ratio
3978.HK trades at 7.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3978.HK's PEG of 1.67 indicates fair valuation.
Price to Book
The market values China Beststudy Education Group at 2.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.05 times EBITDA. This is generally considered low.
How Well Does 3978.HK Make Money?
Net Profit Margin
For every $100 in sales, China Beststudy Education Group keeps $15.84 as profit after all expenses.
Operating Margin
Core operations generate -29.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $37.07 in profit for every $100 of shareholder equity.
ROA
China Beststudy Education Group generates $13.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Beststudy Education Group generates strong operating cash flow of $664.34M, reflecting robust business health.
Free Cash Flow
China Beststudy Education Group generates strong free cash flow of $603.71M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.78 in free cash annually.
FCF Yield
3978.HK converts 25.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
-51.58
vs 25 benchmark
How 3978.HK Stacks Against Its Sector Peers
| Metric | 3978.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.73 | 22.36 | Better (Cheaper) |
| ROE | 37.07% | 1238.00% | Weak |
| Net Margin | 15.84% | -5096.00% (disorted) | Strong |
| Debt/Equity | 0.40 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 1.19 | 2.47 | Neutral |
| ROA | 13.08% | -191998.00% (disorted) | Strong |
3978.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 China Beststudy Education Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-37.32%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
47.92%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
36.76%
Industry Style: Defensive, Dividend, Low Volatility
High Growth