Sinotruk (Hong Kong) Limited
Sinotruk (Hong Kong) Limited Fundamental Analysis
Sinotruk (Hong Kong) Limited (SHKLF) shows moderate financial fundamentals with a PE ratio of 9.05, profit margin of 6.41%, and ROE of 15.78%. The company generates $108.6B in annual revenue with strong year-over-year growth of 11.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.7/100 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 SHKLF's fundamental strength across five key dimensions:
Efficiency Score
WeakSHKLF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSHKLF trades at attractive valuation levels.
Growth Score
ExcellentSHKLF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSHKLF maintains a strong and stable balance sheet.
Profitability Score
ModerateSHKLF maintains healthy but balanced margins.
Key Financial Metrics
Is SHKLF Expensive or Cheap?
P/E Ratio
SHKLF trades at 9.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SHKLF's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Sinotruk (Hong Kong) Limited at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.23 times EBITDA. This is generally considered low.
How Well Does SHKLF Make Money?
Net Profit Margin
For every $100 in sales, Sinotruk (Hong Kong) Limited keeps $6.41 as profit after all expenses.
Operating Margin
Core operations generate 7.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.78 in profit for every $100 of shareholder equity.
ROA
Sinotruk (Hong Kong) Limited generates $4.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sinotruk (Hong Kong) Limited generates limited operating cash flow of $8.41B, signaling weaker underlying cash strength.
Free Cash Flow
Sinotruk (Hong Kong) Limited produces free cash flow of $5.77B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.11 in free cash annually.
FCF Yield
SHKLF converts 9.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How SHKLF Stacks Against Its Sector Peers
| Metric | SHKLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.05 | 26.72 | Better (Cheaper) |
| ROE | 15.78% | 1297.00% | Weak |
| Net Margin | 6.41% | -38908.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.72 | Neutral |
| Current Ratio | 1.06 | 10.10 | Neutral |
| ROA | 4.54% | -1511770.00% (disorted) | Weak |
SHKLF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sinotruk (Hong Kong) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.86%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
76.93%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
13.11%
Industry Style: Cyclical, Value, Infrastructure
High Growth