Yuexiu Services Group Limited
Yuexiu Services Group Limited Fundamental Analysis
Yuexiu Services Group Limited (6626.HK) shows moderate financial fundamentals with a PE ratio of 8.36, profit margin of 7.06%, and ROE of 7.67%. The company generates $3.9B in annual revenue with strong year-over-year growth of 19.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.0/100 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 6626.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak6626.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent6626.HK trades at attractive valuation levels.
Growth Score
Moderate6626.HK shows steady but slowing expansion.
Financial Health Score
Excellent6626.HK maintains a strong and stable balance sheet.
Profitability Score
Weak6626.HK struggles to sustain strong margins.
Key Financial Metrics
Is 6626.HK Expensive or Cheap?
P/E Ratio
6626.HK trades at 8.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6626.HK's PEG of -0.67 indicates potential undervaluation.
Price to Book
The market values Yuexiu Services Group Limited at 0.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.40 times EBITDA. This signals the market has high growth expectations.
How Well Does 6626.HK Make Money?
Net Profit Margin
For every $100 in sales, Yuexiu Services Group Limited keeps $7.06 as profit after all expenses.
Operating Margin
Core operations generate 6.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.67 in profit for every $100 of shareholder equity.
ROA
Yuexiu Services Group Limited generates $3.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Yuexiu Services Group Limited generates limited operating cash flow of $181.85M, signaling weaker underlying cash strength.
Free Cash Flow
Yuexiu Services Group Limited produces free cash flow of $170.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.11 in free cash annually.
FCF Yield
6626.HK converts 7.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 6626.HK Stacks Against Its Sector Peers
| Metric | 6626.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.36 | 22.50 | Better (Cheaper) |
| ROE | 7.67% | 700.00% | Weak |
| Net Margin | 7.06% | -37372.00% (disorted) | Weak |
| Debt/Equity | 0.03 | -20.81 (disorted) | Distorted |
| Current Ratio | 1.62 | 1949.79 | Neutral |
| ROA | 3.95% | -1322.00% (disorted) | Weak |
6626.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Yuexiu Services Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
320.09%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
276.17%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
84.15%
Industry Style: Income, Inflation Hedge, REIT
High Growth