China Hongqiao Group Limited
China Hongqiao Group Limited Fundamental Analysis
China Hongqiao Group Limited (CHHQY) shows moderate financial fundamentals with a PE ratio of 15.12, profit margin of 13.95%, and ROE of 18.45%. The company generates $160.7B in annual revenue with strong year-over-year growth of 16.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CHHQY's fundamental strength across five key dimensions:
Efficiency Score
WeakCHHQY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCHHQY trades at attractive valuation levels.
Growth Score
ExcellentCHHQY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCHHQY maintains a strong and stable balance sheet.
Profitability Score
ModerateCHHQY maintains healthy but balanced margins.
Key Financial Metrics
Is CHHQY Expensive or Cheap?
P/E Ratio
CHHQY trades at 15.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CHHQY's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values China Hongqiao Group Limited at 2.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.16 times EBITDA. This is generally considered low.
How Well Does CHHQY Make Money?
Net Profit Margin
For every $100 in sales, China Hongqiao Group Limited keeps $13.95 as profit after all expenses.
Operating Margin
Core operations generate 21.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.45 in profit for every $100 of shareholder equity.
ROA
China Hongqiao Group Limited generates $9.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Hongqiao Group Limited produces operating cash flow of $32.14B, showing steady but balanced cash generation.
Free Cash Flow
China Hongqiao Group Limited generates strong free cash flow of $18.73B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.88 in free cash annually.
FCF Yield
CHHQY converts 5.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How CHHQY Stacks Against Its Sector Peers
| Metric | CHHQY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.12 | 24.71 | Better (Cheaper) |
| ROE | 18.45% | 887.00% | Weak |
| Net Margin | 13.95% | -99745.00% (disorted) | Strong |
| Debt/Equity | 0.57 | 0.50 | Neutral |
| Current Ratio | 2.12 | 6.80 | Strong Liquidity |
| ROA | 9.14% | -6232.00% (disorted) | Weak |
CHHQY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Hongqiao Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.38%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
233.14%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
112.11%
Industry Style: Cyclical, Commodity, Value
High Growth