Huaxin Cement Co., Ltd.
Huaxin Cement Co., Ltd. Fundamental Analysis
Huaxin Cement Co., Ltd. (6655.HK) shows weak financial fundamentals with a PE ratio of 11.38, profit margin of 8.07%, and ROE of 9.12%. The company generates $47.1B in annual revenue with weak year-over-year growth of 1.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6655.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak6655.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent6655.HK trades at attractive valuation levels.
Growth Score
Weak6655.HK faces weak or negative growth trends.
Financial Health Score
Moderate6655.HK shows balanced financial health with some risks.
Profitability Score
Weak6655.HK struggles to sustain strong margins.
Key Financial Metrics
Is 6655.HK Expensive or Cheap?
P/E Ratio
6655.HK trades at 11.38 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6655.HK's PEG of -0.93 indicates potential undervaluation.
Price to Book
The market values Huaxin Cement Co., Ltd. at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.82 times EBITDA. This is generally considered low.
How Well Does 6655.HK Make Money?
Net Profit Margin
For every $100 in sales, Huaxin Cement Co., Ltd. keeps $8.07 as profit after all expenses.
Operating Margin
Core operations generate 14.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.12 in profit for every $100 of shareholder equity.
ROA
Huaxin Cement Co., Ltd. generates $3.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Huaxin Cement Co., Ltd. produces operating cash flow of $8.95B, showing steady but balanced cash generation.
Free Cash Flow
Huaxin Cement Co., Ltd. generates strong free cash flow of $5.44B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.96 in free cash annually.
FCF Yield
6655.HK converts 9.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.008
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 6655.HK Stacks Against Its Sector Peers
| Metric | 6655.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.38 | 24.08 | Better (Cheaper) |
| ROE | 9.12% | 921.00% | Weak |
| Net Margin | 8.07% | -113338.00% (disorted) | Weak |
| Debt/Equity | 0.83 | 0.53 | Weak (High Leverage) |
| Current Ratio | 0.97 | 5.09 | Weak Liquidity |
| ROA | 3.46% | -9816.00% (disorted) | Weak |
6655.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 Huaxin Cement Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.55%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
-61.65%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-37.84%
Industry Style: Cyclical, Commodity, Value
Declining