Fangzhou Inc. Fundamental Analysis
Fangzhou Inc. (6086.HK) shows weak financial fundamentals with a PE ratio of 73.71, profit margin of 0.34%, and ROE of 7.79%. The company generates $3.7B 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 39.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6086.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak6086.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate6086.HK shows balanced valuation metrics.
Growth Score
Weak6086.HK faces weak or negative growth trends.
Financial Health Score
Excellent6086.HK maintains a strong and stable balance sheet.
Profitability Score
Weak6086.HK struggles to sustain strong margins.
Key Financial Metrics
Is 6086.HK Expensive or Cheap?
P/E Ratio
6086.HK trades at 73.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6086.HK's PEG of 0.22 indicates potential undervaluation.
Price to Book
The market values Fangzhou Inc. at 5.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 72.13 times EBITDA. This signals the market has high growth expectations.
How Well Does 6086.HK Make Money?
Net Profit Margin
For every $100 in sales, Fangzhou Inc. keeps $0.34 as profit after all expenses.
Operating Margin
Core operations generate 0.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.79 in profit for every $100 of shareholder equity.
ROA
Fangzhou Inc. generates $1.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fangzhou Inc. generates limited operating cash flow of $78.07M, signaling weaker underlying cash strength.
Free Cash Flow
Fangzhou Inc. generates weak or negative free cash flow of $72.11M, restricting financial flexibility.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
6086.HK converts 7.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
73.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 6086.HK Stacks Against Its Sector Peers
| Metric | 6086.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 73.71 | 29.15 | Worse (Expensive) |
| ROE | 7.79% | 438.00% | Weak |
| Net Margin | 0.34% | -11409.00% (disorted) | Weak |
| Debt/Equity | 0.23 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.20 | 5.14 | Neutral |
| ROA | 1.45% | -21.00% (disorted) | Weak |
6086.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 Fangzhou Inc.'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: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation