Cathay Financial Holding Co., Ltd.
Cathay Financial Holding Co., Ltd. Fundamental Analysis
Cathay Financial Holding Co., Ltd. (CHYFF) shows moderate financial fundamentals with a PE ratio of 6.25, profit margin of 18.00%, and ROE of 12.53%. The company generates $871.1B in annual revenue with weak year-over-year growth of 1.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.1/100 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 CHYFF's fundamental strength across five key dimensions:
Efficiency Score
WeakCHYFF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCHYFF trades at attractive valuation levels.
Growth Score
WeakCHYFF faces weak or negative growth trends.
Financial Health Score
ModerateCHYFF shows balanced financial health with some risks.
Profitability Score
ModerateCHYFF maintains healthy but balanced margins.
Key Financial Metrics
Is CHYFF Expensive or Cheap?
P/E Ratio
CHYFF trades at 6.25 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CHYFF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Cathay Financial Holding Co., Ltd. at 0.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.98 times EBITDA. This signals the market has high growth expectations.
How Well Does CHYFF Make Money?
Net Profit Margin
For every $100 in sales, Cathay Financial Holding Co., Ltd. keeps $18.00 as profit after all expenses.
Operating Margin
Core operations generate 19.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.53 in profit for every $100 of shareholder equity.
ROA
Cathay Financial Holding Co., Ltd. generates $0.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cathay Financial Holding Co., Ltd. generates strong operating cash flow of $274.82B, reflecting robust business health.
Free Cash Flow
Cathay Financial Holding Co., Ltd. generates strong free cash flow of $267.47B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $125.62 in free cash annually.
FCF Yield
CHYFF converts 18.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How CHYFF Stacks Against Its Sector Peers
| Metric | CHYFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.25 | 19.11 | Better (Cheaper) |
| ROE | 12.53% | 821.00% | Weak |
| Net Margin | 18.00% | 1655.00% | Weak |
| Debt/Equity | 0.49 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 659.22 | Weak Liquidity |
| ROA | 0.76% | 1976.00% | Weak |
CHYFF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cathay Financial Holding Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.45%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
30.99%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
5.87%
Industry Style: Value, Dividend, Cyclical
Growing