China Aluminum Cans Holdings Limited Fundamental Analysis (HKSE: 6898.HK)
China Aluminum Cans Holdings Limited Fundamental Analysis (HKSE: 6898.HK)
China Aluminum Cans Holdings Limited (HKSE: 6898.HK) shows weak financial fundamentals with a PE ratio of 31.15, profit margin of 9.10%, and ROE of 18.66%. The company generates $0.3B 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 58.6/100 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 6898.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak6898.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate6898.HK shows balanced valuation metrics.
Growth Score
Moderate6898.HK shows steady but slowing expansion.
Financial Health Score
Excellent6898.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate6898.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 6898.HK Expensive or Cheap?
P/E Ratio
6898.HK trades at 31.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6898.HK's PEG of 0.63 indicates potential undervaluation.
Price to Book
The market values China Aluminum Cans Holdings Limited at 5.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.94 times EBITDA. This signals the market has high growth expectations.
How Well Does 6898.HK Make Money?
Net Profit Margin
For every $100 in sales, China Aluminum Cans Holdings Limited keeps $9.10 as profit after all expenses.
Operating Margin
Core operations generate 8.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.66 in profit for every $100 of shareholder equity.
ROA
China Aluminum Cans Holdings Limited generates $7.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Aluminum Cans Holdings Limited produces operating cash flow of $40.63M, showing steady but balanced cash generation.
Free Cash Flow
China Aluminum Cans Holdings Limited generates strong free cash flow of $40.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
6898.HK converts 5.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 6898.HK Stacks Against Its Sector Peers
| Metric | 6898.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.15 | 25.50 | Worse (Expensive) |
| ROE | 18.66% | 964.00% | Weak |
| Net Margin | 9.10% | -4901.00% (disorted) | Weak |
| Debt/Equity | 0.87 | 0.60 | Weak (High Leverage) |
| Current Ratio | 4.98 | 2.34 | Strong Liquidity |
| ROA | 7.88% | 322.00% | Weak |
6898.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 China Aluminum Cans Holdings Limited'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: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary