Nongfu Spring Co., Ltd.
Nongfu Spring Co., Ltd. Fundamental Analysis
Nongfu Spring Co., Ltd. (9633.HK) shows moderate financial fundamentals with a PE ratio of 29.50, profit margin of 30.19%, and ROE of 44.40%. The company generates $52.1B in annual revenue with weak year-over-year growth of 0.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.0/100 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 9633.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent9633.HK demonstrates superior asset utilization.
Valuation Score
Weak9633.HK trades at a premium to fair value.
Growth Score
Weak9633.HK faces weak or negative growth trends.
Financial Health Score
Excellent9633.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent9633.HK achieves industry-leading margins.
Key Financial Metrics
Is 9633.HK Expensive or Cheap?
P/E Ratio
9633.HK trades at 29.50 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 9633.HK's PEG of 2.01 indicates potential overvaluation.
Price to Book
The market values Nongfu Spring Co., Ltd. at 11.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.75 times EBITDA. This signals the market has high growth expectations.
How Well Does 9633.HK Make Money?
Net Profit Margin
For every $100 in sales, Nongfu Spring Co., Ltd. keeps $30.19 as profit after all expenses.
Operating Margin
Core operations generate 36.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $44.40 in profit for every $100 of shareholder equity.
ROA
Nongfu Spring Co., Ltd. generates $24.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nongfu Spring Co., Ltd. generates strong operating cash flow of $15.89B, reflecting robust business health.
Free Cash Flow
Nongfu Spring Co., Ltd. generates strong free cash flow of $9.07B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.81 in free cash annually.
FCF Yield
9633.HK converts 1.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.44
vs 25 benchmark
ROA
Return on assets percentage
0.24
vs 25 benchmark
ROCE
Return on capital employed
0.48
vs 25 benchmark
How 9633.HK Stacks Against Its Sector Peers
| Metric | 9633.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.50 | 22.46 | Worse (Expensive) |
| ROE | 44.40% | 1260.00% | Weak |
| Net Margin | 30.19% | -5313.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 1.07 | 2.49 | Neutral |
| ROA | 24.13% | -193380.00% (disorted) | Strong |
9633.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nongfu Spring Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.50%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
135.27%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
41.67%
Industry Style: Defensive, Dividend, Low Volatility
High Growth