AviChina Industry & Technology Company Limited
AviChina Industry & Technology Company Limited Fundamental Analysis
AviChina Industry & Technology Company Limited (AVIJF) shows weak financial fundamentals with a PE ratio of 14.54, profit margin of 2.17%, and ROE of 5.74%. The company generates $70.6B in annual revenue with weak year-over-year growth of 2.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AVIJF's fundamental strength across five key dimensions:
Efficiency Score
WeakAVIJF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAVIJF trades at attractive valuation levels.
Growth Score
WeakAVIJF faces weak or negative growth trends.
Financial Health Score
ExcellentAVIJF maintains a strong and stable balance sheet.
Profitability Score
WeakAVIJF struggles to sustain strong margins.
Key Financial Metrics
Is AVIJF Expensive or Cheap?
P/E Ratio
AVIJF trades at 14.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AVIJF's PEG of -0.20 indicates potential undervaluation.
Price to Book
The market values AviChina Industry & Technology Company Limited at 0.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.01 times EBITDA. This is generally considered low.
How Well Does AVIJF Make Money?
Net Profit Margin
For every $100 in sales, AviChina Industry & Technology Company Limited keeps $2.17 as profit after all expenses.
Operating Margin
Core operations generate 5.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.74 in profit for every $100 of shareholder equity.
ROA
AviChina Industry & Technology Company Limited generates $0.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AviChina Industry & Technology Company Limited generates limited operating cash flow of $4.01B, signaling weaker underlying cash strength.
Free Cash Flow
AviChina Industry & Technology Company Limited generates weak or negative free cash flow of $559.50M, restricting financial flexibility.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
AVIJF converts 3.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How AVIJF Stacks Against Its Sector Peers
| Metric | AVIJF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.54 | 26.76 | Better (Cheaper) |
| ROE | 5.74% | 1300.00% | Weak |
| Net Margin | 2.17% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.56 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.66 | 10.68 | Neutral |
| ROA | 0.99% | -1545134.00% (disorted) | Weak |
AVIJF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AviChina Industry & Technology Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.52%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
54.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-60.84%
Industry Style: Cyclical, Value, Infrastructure
Declining