China Resources Beer (Holdings) Company Limited
China Resources Beer (Holdings) Company Limited Fundamental Analysis
China Resources Beer (Holdings) Company Limited (CRHKF) shows moderate financial fundamentals with a PE ratio of 13.48, profit margin of 14.99%, and ROE of 17.15%. The company generates $38.8B in annual revenue with weak year-over-year growth of -0.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.8/100 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 CRHKF's fundamental strength across five key dimensions:
Efficiency Score
WeakCRHKF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRHKF trades at attractive valuation levels.
Growth Score
WeakCRHKF faces weak or negative growth trends.
Financial Health Score
ModerateCRHKF shows balanced financial health with some risks.
Profitability Score
ModerateCRHKF maintains healthy but balanced margins.
Key Financial Metrics
Is CRHKF Expensive or Cheap?
P/E Ratio
CRHKF trades at 13.48 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRHKF's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values China Resources Beer (Holdings) Company Limited at 2.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.70 times EBITDA. This is generally considered low.
How Well Does CRHKF Make Money?
Net Profit Margin
For every $100 in sales, China Resources Beer (Holdings) Company Limited keeps $14.99 as profit after all expenses.
Operating Margin
Core operations generate 15.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.15 in profit for every $100 of shareholder equity.
ROA
China Resources Beer (Holdings) Company Limited generates $8.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Resources Beer (Holdings) Company Limited produces operating cash flow of $7.29B, showing steady but balanced cash generation.
Free Cash Flow
China Resources Beer (Holdings) Company Limited generates strong free cash flow of $5.00B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.54 in free cash annually.
FCF Yield
CRHKF converts 6.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CRHKF Stacks Against Its Sector Peers
| Metric | CRHKF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.48 | 22.56 | Better (Cheaper) |
| ROE | 17.15% | 1288.00% | Weak |
| Net Margin | 14.99% | -5952.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 0.83 | 2.41 | Weak Liquidity |
| ROA | 8.18% | -197304.00% (disorted) | Weak |
CRHKF 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 Resources Beer (Holdings) Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.41%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
261.20%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
51.06%
Industry Style: Defensive, Dividend, Low Volatility
High Growth