China Construction Bank Corporation
China Construction Bank Corporation Fundamental Analysis
China Construction Bank Corporation (CICHY) shows moderate financial fundamentals with a PE ratio of 5.34, profit margin of 40.12%, and ROE of 9.78%. The company generates $1170.6B in annual revenue with weak year-over-year growth of -0.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CICHY's fundamental strength across five key dimensions:
Efficiency Score
WeakCICHY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCICHY trades at attractive valuation levels.
Growth Score
WeakCICHY faces weak or negative growth trends.
Financial Health Score
WeakCICHY carries high financial risk with limited liquidity.
Profitability Score
ModerateCICHY maintains healthy but balanced margins.
Key Financial Metrics
Is CICHY Expensive or Cheap?
P/E Ratio
CICHY trades at 5.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CICHY's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values China Construction Bank Corporation at 0.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -26.04 times EBITDA. This is generally considered low.
How Well Does CICHY Make Money?
Net Profit Margin
For every $100 in sales, China Construction Bank Corporation keeps $40.12 as profit after all expenses.
Operating Margin
Core operations generate 47.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.78 in profit for every $100 of shareholder equity.
ROA
China Construction Bank Corporation generates $0.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Construction Bank Corporation generates strong operating cash flow of $1.03T, reflecting robust business health.
Free Cash Flow
China Construction Bank Corporation generates strong free cash flow of $985.05B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $56.48 in free cash annually.
FCF Yield
CICHY converts 28.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How CICHY Stacks Against Its Sector Peers
| Metric | CICHY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.34 | 18.73 | Better (Cheaper) |
| ROE | 9.78% | 847.00% | Weak |
| Net Margin | 40.12% | 2562.00% | Weak |
| Debt/Equity | 2.92 | 0.93 | Weak (High Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.74% | -21692.00% (disorted) | Weak |
CICHY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Construction Bank Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.33%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
22.79%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-43.25%
Industry Style: Value, Dividend, Cyclical
Declining