Postal Savings Bank of China Co., Ltd.
Postal Savings Bank of China Co., Ltd. Fundamental Analysis
Postal Savings Bank of China Co., Ltd. (PSBKF) shows strong financial fundamentals with a PE ratio of 5.65, profit margin of 22.67%, and ROE of 8.10%. The company generates $362.9B in annual revenue with strong year-over-year growth of 10.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PSBKF's fundamental strength across five key dimensions:
Efficiency Score
WeakPSBKF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPSBKF trades at attractive valuation levels.
Growth Score
ModeratePSBKF shows steady but slowing expansion.
Financial Health Score
ExcellentPSBKF maintains a strong and stable balance sheet.
Profitability Score
WeakPSBKF struggles to sustain strong margins.
Key Financial Metrics
Is PSBKF Expensive or Cheap?
P/E Ratio
PSBKF trades at 5.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PSBKF's PEG of -0.03 indicates potential undervaluation.
Price to Book
The market values Postal Savings Bank of China Co., Ltd. at 0.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.26 times EBITDA. This signals the market has high growth expectations.
How Well Does PSBKF Make Money?
Net Profit Margin
For every $100 in sales, Postal Savings Bank of China Co., Ltd. keeps $22.67 as profit after all expenses.
Operating Margin
Core operations generate 31.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.10 in profit for every $100 of shareholder equity.
ROA
Postal Savings Bank of China Co., Ltd. generates $0.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Postal Savings Bank of China Co., Ltd. generates limited operating cash flow of $-698.15B, signaling weaker underlying cash strength.
Free Cash Flow
Postal Savings Bank of China Co., Ltd. generates weak or negative free cash flow of $-711.12B, restricting financial flexibility.
FCF Per Share
Each share generates $-6.43 in free cash annually.
FCF Yield
PSBKF converts -1.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How PSBKF Stacks Against Its Sector Peers
| Metric | PSBKF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.65 | 19.02 | Better (Cheaper) |
| ROE | 8.10% | 818.00% | Weak |
| Net Margin | 22.67% | 1593.00% | Weak |
| Debt/Equity | 0.92 | 0.99 | Neutral |
| Current Ratio | 5.17 | 669.82 | Strong Liquidity |
| ROA | 0.47% | -24701.00% (disorted) | Weak |
PSBKF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Postal Savings Bank of China Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.15%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-1.17%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-52.36%
Industry Style: Value, Dividend, Cyclical
Declining