Changjiu Holdings Limited
Changjiu Holdings Limited Fundamental Analysis
Changjiu Holdings Limited (6959.HK) shows moderate financial fundamentals with a PE ratio of 6.36, profit margin of 8.72%, and ROE of 29.47%. The company generates $1.6B in annual revenue with moderate year-over-year growth of 5.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.8/100 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 6959.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent6959.HK demonstrates superior asset utilization.
Valuation Score
Excellent6959.HK trades at attractive valuation levels.
Growth Score
Excellent6959.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent6959.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate6959.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 6959.HK Expensive or Cheap?
P/E Ratio
6959.HK trades at 6.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6959.HK's PEG of -0.43 indicates potential undervaluation.
Price to Book
The market values Changjiu Holdings Limited at 1.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.55 times EBITDA. This is generally considered low.
How Well Does 6959.HK Make Money?
Net Profit Margin
For every $100 in sales, Changjiu Holdings Limited keeps $8.72 as profit after all expenses.
Operating Margin
Core operations generate 10.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.47 in profit for every $100 of shareholder equity.
ROA
Changjiu Holdings Limited generates $14.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Changjiu Holdings Limited generates limited operating cash flow of $116.83M, signaling weaker underlying cash strength.
Free Cash Flow
Changjiu Holdings Limited produces free cash flow of $116.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.58 in free cash annually.
FCF Yield
6959.HK converts 13.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.34
vs 25 benchmark
How 6959.HK Stacks Against Its Sector Peers
| Metric | 6959.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.36 | 33.61 | Better (Cheaper) |
| ROE | 29.47% | 1020.00% | Weak |
| Net Margin | 8.72% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.52 | 0.45 | Neutral |
| Current Ratio | 2.09 | 5.65 | Strong Liquidity |
| ROA | 14.58% | -291484.00% (disorted) | Strong |
6959.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Changjiu Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3.38%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
-12.08%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-43.41%
Industry Style: Growth, Innovation, High Beta
Declining