Weichai Power Co., Ltd.
Weichai Power Co., Ltd. Fundamental Analysis
Weichai Power Co., Ltd. (WEICF) shows weak financial fundamentals with a PE ratio of 21.06, profit margin of 5.30%, and ROE of 13.21%. The company generates $223.6B in annual revenue with weak year-over-year growth of 0.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WEICF's fundamental strength across five key dimensions:
Efficiency Score
WeakWEICF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWEICF trades at attractive valuation levels.
Growth Score
ModerateWEICF shows steady but slowing expansion.
Financial Health Score
ExcellentWEICF maintains a strong and stable balance sheet.
Profitability Score
WeakWEICF struggles to sustain strong margins.
Key Financial Metrics
Is WEICF Expensive or Cheap?
P/E Ratio
WEICF trades at 21.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WEICF's PEG of 0.49 indicates potential undervaluation.
Price to Book
The market values Weichai Power Co., Ltd. at 2.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.57 times EBITDA. This signals the market has high growth expectations.
How Well Does WEICF Make Money?
Net Profit Margin
For every $100 in sales, Weichai Power Co., Ltd. keeps $5.30 as profit after all expenses.
Operating Margin
Core operations generate 7.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.21 in profit for every $100 of shareholder equity.
ROA
Weichai Power Co., Ltd. generates $3.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Weichai Power Co., Ltd. generates limited operating cash flow of $15.40B, signaling weaker underlying cash strength.
Free Cash Flow
Weichai Power Co., Ltd. produces free cash flow of $20.87B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.40 in free cash annually.
FCF Yield
WEICF converts 8.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How WEICF Stacks Against Its Sector Peers
| Metric | WEICF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.06 | 26.49 | Better (Cheaper) |
| ROE | 13.21% | 1307.00% | Weak |
| Net Margin | 5.30% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.96 | 0.81 | Neutral |
| Current Ratio | 1.20 | 10.48 | Neutral |
| ROA | 3.26% | -1549793.00% (disorted) | Weak |
WEICF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Weichai Power Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.47%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
13.87%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-0.47%
Industry Style: Cyclical, Value, Infrastructure
Declining