China Life Insurance Company Limited
China Life Insurance Company Limited Fundamental Analysis
China Life Insurance Company Limited (CILJF) shows moderate financial fundamentals with a PE ratio of 22.71, profit margin of 11.05%, and ROE of 5.48%. The company generates $445.0B in annual revenue with strong year-over-year growth of 43.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.3/100 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 CILJF's fundamental strength across five key dimensions:
Efficiency Score
WeakCILJF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCILJF trades at attractive valuation levels.
Growth Score
ModerateCILJF shows steady but slowing expansion.
Financial Health Score
ModerateCILJF shows balanced financial health with some risks.
Profitability Score
WeakCILJF struggles to sustain strong margins.
Key Financial Metrics
Is CILJF Expensive or Cheap?
P/E Ratio
CILJF trades at 22.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CILJF's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values China Life Insurance Company Limited at 1.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 63.41 times EBITDA. This signals the market has high growth expectations.
How Well Does CILJF Make Money?
Net Profit Margin
For every $100 in sales, China Life Insurance Company Limited keeps $11.05 as profit after all expenses.
Operating Margin
Core operations generate 4.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.48 in profit for every $100 of shareholder equity.
ROA
China Life Insurance Company Limited generates $0.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Life Insurance Company Limited generates strong operating cash flow of $598.63B, reflecting robust business health.
Free Cash Flow
China Life Insurance Company Limited generates strong free cash flow of $644.35B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13.73 in free cash annually.
FCF Yield
CILJF converts 34.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How CILJF Stacks Against Its Sector Peers
| Metric | CILJF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.71 | 19.11 | Worse (Expensive) |
| ROE | 5.48% | 821.00% | Weak |
| Net Margin | 11.05% | 1655.00% | Weak |
| Debt/Equity | 0.06 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.02 | 659.22 | Weak Liquidity |
| ROA | 0.39% | 1976.00% | Weak |
CILJF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Life Insurance Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-54.41%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
83.30%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
32.31%
Industry Style: Value, Dividend, Cyclical
High Growth