South China Vocational Education Group Company Limited
South China Vocational Education Group Company Limited Fundamental Analysis
South China Vocational Education Group Company Limited (6913.HK) shows moderate financial fundamentals with a PE ratio of 2.86, profit margin of 12.24%, and ROE of 5.13%. The company generates $0.7B in annual revenue with strong year-over-year growth of 22.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.0/100 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 6913.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak6913.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent6913.HK trades at attractive valuation levels.
Growth Score
Moderate6913.HK shows steady but slowing expansion.
Financial Health Score
Excellent6913.HK maintains a strong and stable balance sheet.
Profitability Score
Weak6913.HK struggles to sustain strong margins.
Key Financial Metrics
Is 6913.HK Expensive or Cheap?
P/E Ratio
6913.HK trades at 2.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6913.HK's PEG of -0.72 indicates potential undervaluation.
Price to Book
The market values South China Vocational Education Group Company Limited at 0.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.49 times EBITDA. This is generally considered low.
How Well Does 6913.HK Make Money?
Net Profit Margin
For every $100 in sales, South China Vocational Education Group Company Limited keeps $12.24 as profit after all expenses.
Operating Margin
Core operations generate 7.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.13 in profit for every $100 of shareholder equity.
ROA
South China Vocational Education Group Company Limited generates $3.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
South China Vocational Education Group Company Limited generates strong operating cash flow of $291.53M, reflecting robust business health.
Free Cash Flow
South China Vocational Education Group Company Limited produces free cash flow of $65.21M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
6913.HK converts 26.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 6913.HK Stacks Against Its Sector Peers
| Metric | 6913.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.86 | 22.36 | Better (Cheaper) |
| ROE | 5.13% | 1238.00% | Weak |
| Net Margin | 12.24% | -5096.00% (disorted) | Strong |
| Debt/Equity | 0.24 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 1.01 | 2.47 | Neutral |
| ROA | 3.44% | -191998.00% (disorted) | Weak |
6913.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews South China Vocational Education Group Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.83%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-39.39%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-100.00%
Industry Style: Defensive, Dividend, Low Volatility
Declining