China Communications Services Corporation Limited
China Communications Services Corporation Limited Fundamental Analysis
China Communications Services Corporation Limited (CUCSY) shows weak financial fundamentals with a PE ratio of 6.26, profit margin of 2.37%, and ROE of 7.86%. The company generates $152.5B in annual revenue with weak year-over-year growth of 0.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.0/100 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 CUCSY's fundamental strength across five key dimensions:
Efficiency Score
WeakCUCSY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCUCSY trades at attractive valuation levels.
Growth Score
WeakCUCSY faces weak or negative growth trends.
Financial Health Score
ExcellentCUCSY maintains a strong and stable balance sheet.
Profitability Score
WeakCUCSY struggles to sustain strong margins.
Key Financial Metrics
Is CUCSY Expensive or Cheap?
P/E Ratio
CUCSY trades at 6.26 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CUCSY's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values China Communications Services Corporation Limited at 0.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.97 times EBITDA. This is generally considered low.
How Well Does CUCSY Make Money?
Net Profit Margin
For every $100 in sales, China Communications Services Corporation Limited keeps $2.37 as profit after all expenses.
Operating Margin
Core operations generate -1.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.86 in profit for every $100 of shareholder equity.
ROA
China Communications Services Corporation Limited generates $2.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Communications Services Corporation Limited generates limited operating cash flow of $8.63B, signaling weaker underlying cash strength.
Free Cash Flow
China Communications Services Corporation Limited produces free cash flow of $7.69B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $27.76 in free cash annually.
FCF Yield
CUCSY converts 34.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.009
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.06
vs 25 benchmark
How CUCSY Stacks Against Its Sector Peers
| Metric | CUCSY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.26 | 21.66 | Better (Cheaper) |
| ROE | 7.86% | 1190.00% | Weak |
| Net Margin | 2.37% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.17 | 1.59 | Neutral |
| ROA | 2.61% | -202359.00% (disorted) | Weak |
CUCSY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Communications Services Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.75%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
18.29%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
29.29%
Industry Style: Growth, Technology, Streaming
High Growth