Agricultural Bank of China Limited
Agricultural Bank of China Limited Fundamental Analysis
Agricultural Bank of China Limited (ACGBF) shows moderate financial fundamentals with a PE ratio of 6.43, profit margin of 24.16%, and ROE of 9.21%. The company generates $1104.1B in annual revenue with moderate year-over-year growth of 3.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACGBF's fundamental strength across five key dimensions:
Efficiency Score
WeakACGBF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentACGBF trades at attractive valuation levels.
Growth Score
WeakACGBF faces weak or negative growth trends.
Financial Health Score
WeakACGBF carries high financial risk with limited liquidity.
Profitability Score
ModerateACGBF maintains healthy but balanced margins.
Key Financial Metrics
Is ACGBF Expensive or Cheap?
P/E Ratio
ACGBF trades at 6.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ACGBF's PEG of -0.73 indicates potential undervaluation.
Price to Book
The market values Agricultural Bank of China Limited at 0.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.10 times EBITDA. This is generally considered low.
How Well Does ACGBF Make Money?
Net Profit Margin
For every $100 in sales, Agricultural Bank of China Limited keeps $24.16 as profit after all expenses.
Operating Margin
Core operations generate 31.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.21 in profit for every $100 of shareholder equity.
ROA
Agricultural Bank of China Limited generates $0.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Agricultural Bank of China Limited generates strong operating cash flow of $1.40T, reflecting robust business health.
Free Cash Flow
Agricultural Bank of China Limited generates strong free cash flow of $1.37T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.93 in free cash annually.
FCF Yield
ACGBF converts 86.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ACGBF Stacks Against Its Sector Peers
| Metric | ACGBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.43 | 18.73 | Better (Cheaper) |
| ROE | 9.21% | 847.00% | Weak |
| Net Margin | 24.16% | 2562.00% | Weak |
| Debt/Equity | 1.11 | 0.93 | Neutral |
| Current Ratio | 0.12 | 674.76 | Weak Liquidity |
| ROA | 0.60% | -21692.00% (disorted) | Weak |
ACGBF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Agricultural Bank of China Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.91%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
27.12%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
36.26%
Industry Style: Value, Dividend, Cyclical
High Growth