Capital Environment Holdings Limited
Capital Environment Holdings Limited Fundamental Analysis
Capital Environment Holdings Limited (3989.HK) shows weak financial fundamentals with a PE ratio of 4.60, profit margin of 7.43%, and ROE of 3.96%. The company generates $3.7B in annual revenue with weak year-over-year growth of -10.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3989.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3989.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3989.HK trades at attractive valuation levels.
Growth Score
Weak3989.HK faces weak or negative growth trends.
Financial Health Score
Moderate3989.HK shows balanced financial health with some risks.
Profitability Score
Weak3989.HK struggles to sustain strong margins.
Key Financial Metrics
Is 3989.HK Expensive or Cheap?
P/E Ratio
3989.HK trades at 4.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3989.HK's PEG of 0.62 indicates potential undervaluation.
Price to Book
The market values Capital Environment Holdings Limited at 0.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.73 times EBITDA. This is generally considered low.
How Well Does 3989.HK Make Money?
Net Profit Margin
For every $100 in sales, Capital Environment Holdings Limited keeps $7.43 as profit after all expenses.
Operating Margin
Core operations generate 24.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.96 in profit for every $100 of shareholder equity.
ROA
Capital Environment Holdings Limited generates $1.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Capital Environment Holdings Limited produces operating cash flow of $577.96M, showing steady but balanced cash generation.
Free Cash Flow
Capital Environment Holdings Limited generates strong free cash flow of $527.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
3989.HK converts 42.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 3989.HK Stacks Against Its Sector Peers
| Metric | 3989.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.60 | 25.96 | Better (Cheaper) |
| ROE | 3.96% | 1263.00% | Weak |
| Net Margin | 7.43% | -41827.00% (disorted) | Weak |
| Debt/Equity | 1.58 | 0.79 | Weak (High Leverage) |
| Current Ratio | 2.79 | 10.05 | Strong Liquidity |
| ROA | 1.29% | -1497918.00% (disorted) | Weak |
3989.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Capital Environment Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-38.25%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-22.67%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
142.09%
Industry Style: Cyclical, Value, Infrastructure
High Growth