Shanghai Top Numerical Control Technology Co., Ltd. Class H Fundamental Analysis
Shanghai Top Numerical Control Technology Co., Ltd. Class H Fundamental Analysis
Shanghai Top Numerical Control Technology Co., Ltd. Class H (7688.HK) shows weak financial fundamentals with a PE ratio of 3703.98, profit margin of 0.62%, and ROE of 1.97%. The company generates $0.6B 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 11.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 7688.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak7688.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak7688.HK trades at a premium to fair value.
Growth Score
Moderate7688.HK shows steady but slowing expansion.
Financial Health Score
Moderate7688.HK shows balanced financial health with some risks.
Profitability Score
Weak7688.HK struggles to sustain strong margins.
Key Financial Metrics
Is 7688.HK Expensive or Cheap?
P/E Ratio
7688.HK trades at 3703.98 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 7688.HK's PEG of 42.91 indicates potential overvaluation.
Price to Book
The market values Shanghai Top Numerical Control Technology Co., Ltd. Class H at 70.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 317.92 times EBITDA. This signals the market has high growth expectations.
How Well Does 7688.HK Make Money?
Net Profit Margin
For every $100 in sales, Shanghai Top Numerical Control Technology Co., Ltd. Class H keeps $0.62 as profit after all expenses.
Operating Margin
Core operations generate 6.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.97 in profit for every $100 of shareholder equity.
ROA
Shanghai Top Numerical Control Technology Co., Ltd. Class H generates $0.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shanghai Top Numerical Control Technology Co., Ltd. Class H generates limited operating cash flow of $25.39M, signaling weaker underlying cash strength.
Free Cash Flow
Shanghai Top Numerical Control Technology Co., Ltd. Class H generates weak or negative free cash flow of $-13.67M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.03 in free cash annually.
FCF Yield
7688.HK converts -0.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3703.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
42.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
70.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
22.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 7688.HK Stacks Against Its Sector Peers
| Metric | 7688.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3703.98 | 26.05 | Worse (Expensive) |
| ROE | 1.97% | 1247.00% | Weak |
| Net Margin | 0.62% | -39979.00% (disorted) | Weak |
| Debt/Equity | 1.85 | 0.74 | Weak (High Leverage) |
| Current Ratio | 1.12 | 9.99 | Neutral |
| ROA | 0.35% | -1489214.00% (disorted) | Weak |
7688.HK outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shanghai Top Numerical Control Technology Co., Ltd. Class H'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, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure