Cig Fundamental Analysis (HKSE: 6166.HK)
Cig (HKSE: 6166.HK) shows weak financial fundamentals with a PE ratio of 229.32, profit margin of 6.68%, and ROE of 7.03%. The company generates $5.3B in annual revenue with strong year-over-year growth of 32.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.2/100 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 6166.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak6166.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak6166.HK trades at a premium to fair value.
Growth Score
Moderate6166.HK shows steady but slowing expansion.
Financial Health Score
Excellent6166.HK maintains a strong and stable balance sheet.
Profitability Score
Weak6166.HK struggles to sustain strong margins.
Key Financial Metrics
Is 6166.HK Expensive or Cheap?
P/E Ratio
6166.HK trades at 229.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6166.HK's PEG of 2.68 indicates potential overvaluation.
Price to Book
The market values Cig at 3.59 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 54.52 times EBITDA. This signals the market has high growth expectations.
How Well Does 6166.HK Make Money?
Net Profit Margin
For every $100 in sales, Cig keeps $6.68 as profit after all expenses.
Operating Margin
Core operations generate 5.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.03 in profit for every $100 of shareholder equity.
ROA
Cig generates $3.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cig generates limited operating cash flow of $-509.16M, signaling weaker underlying cash strength.
Free Cash Flow
Cig generates weak or negative free cash flow of $-1.77B, restricting financial flexibility.
FCF Per Share
Each share generates $-5.03 in free cash annually.
FCF Yield
6166.HK converts -6.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
229.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 6166.HK Stacks Against Its Sector Peers
| Metric | 6166.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 229.32 | 35.20 | Worse (Expensive) |
| ROE | 7.03% | 749.00% | Weak |
| Net Margin | 6.68% | -2813.00% (disorted) | Weak |
| Debt/Equity | 0.23 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 2.62 | 6.19 | Strong Liquidity |
| ROA | 3.11% | 328.00% | Weak |
6166.HK outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cig's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
Declining