Bairong Inc.
Bairong Inc. Fundamental Analysis
Bairong Inc. (6608.HK) shows weak financial fundamentals with a PE ratio of 39.23, profit margin of 2.38%, and ROE of 1.48%. The company generates $5.2B in annual revenue with moderate year-over-year growth of 9.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6608.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak6608.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate6608.HK shows balanced valuation metrics.
Growth Score
Moderate6608.HK shows steady but slowing expansion.
Financial Health Score
Excellent6608.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate6608.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 6608.HK Expensive or Cheap?
P/E Ratio
6608.HK trades at 39.23 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6608.HK's PEG of -0.59 indicates potential undervaluation.
Price to Book
The market values Bairong Inc. at 0.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 411.28 times EBITDA. This signals the market has high growth expectations.
How Well Does 6608.HK Make Money?
Net Profit Margin
For every $100 in sales, Bairong Inc. keeps $2.38 as profit after all expenses.
Operating Margin
Core operations generate 1.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.48 in profit for every $100 of shareholder equity.
ROA
Bairong Inc. generates $1.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bairong Inc. produces operating cash flow of $1.05B, showing steady but balanced cash generation.
Free Cash Flow
Bairong Inc. generates strong free cash flow of $1.05B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.31 in free cash annually.
FCF Yield
6608.HK converts 11.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How 6608.HK Stacks Against Its Sector Peers
| Metric | 6608.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.23 | 35.82 | Neutral |
| ROE | 1.48% | 1068.00% | Weak |
| Net Margin | 2.38% | 5902809236.00% | Weak |
| Debt/Equity | 0.03 | 0.57 | Strong (Low Leverage) |
| Current Ratio | 5.80 | 5.06 | Strong Liquidity |
| ROA | 1.29% | -295060.00% (disorted) | Weak |
6608.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 Bairong Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
141.87%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
394.63%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
400.91%
Industry Style: Growth, Innovation, High Beta
High Growth