Chagee Holdings Limited American Depositary Shares Fundamental Analysis (NASDAQ: CHA)
Chagee Holdings Limited American Depositary Shares Fundamental Analysis (NASDAQ: CHA)
Chagee Holdings Limited American Depositary Shares (NASDAQ: CHA) shows moderate financial fundamentals with a PE ratio of 11.77, profit margin of 10.20%, and ROE of 16.82%. The company generates $13.1B in annual revenue with moderate year-over-year growth of 4.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.3/100 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 CHA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCHA demonstrates superior asset utilization.
Valuation Score
ExcellentCHA trades at attractive valuation levels.
Growth Score
WeakCHA faces weak or negative growth trends.
Financial Health Score
ExcellentCHA maintains a strong and stable balance sheet.
Profitability Score
ModerateCHA maintains healthy but balanced margins.
Key Financial Metrics
Is CHA Expensive or Cheap?
P/E Ratio
CHA trades at 11.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CHA's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Chagee Holdings Limited American Depositary Shares at 1.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.47 times EBITDA. This signals the market has high growth expectations.
How Well Does CHA Make Money?
Net Profit Margin
For every $100 in sales, Chagee Holdings Limited American Depositary Shares keeps $10.20 as profit after all expenses.
Operating Margin
Core operations generate 11.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.82 in profit for every $100 of shareholder equity.
ROA
Chagee Holdings Limited American Depositary Shares generates $10.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chagee Holdings Limited American Depositary Shares generates limited operating cash flow of $1.19B, signaling weaker underlying cash strength.
Free Cash Flow
Chagee Holdings Limited American Depositary Shares produces free cash flow of $704.60M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.69 in free cash annually.
FCF Yield
CHA converts 4.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How CHA Stacks Against Its Sector Peers
| Metric | CHA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.77 | 23.74 | Better (Cheaper) |
| ROE | 16.82% | 967.00% | Weak |
| Net Margin | 10.20% | -3005.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 3.37 | 2.33 | Strong Liquidity |
| ROA | 10.97% | 324.00% | Weak |
CHA outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chagee Holdings Limited American Depositary Shares's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2865.92%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1558.50%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
4216.14%
Industry Style: Cyclical, Growth, Discretionary
High Growth