Zhongsheng Group Holdings Limited
Zhongsheng Group Holdings Limited Fundamental Analysis
Zhongsheng Group Holdings Limited (ZHSHF) shows weak financial fundamentals with a PE ratio of -14.96, profit margin of -1.00%, and ROE of -3.57%. The company generates $163.0B in annual revenue with weak year-over-year growth of -6.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ZHSHF's fundamental strength across five key dimensions:
Efficiency Score
WeakZHSHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentZHSHF trades at attractive valuation levels.
Growth Score
WeakZHSHF faces weak or negative growth trends.
Financial Health Score
ModerateZHSHF shows balanced financial health with some risks.
Profitability Score
WeakZHSHF struggles to sustain strong margins.
Key Financial Metrics
Is ZHSHF Expensive or Cheap?
P/E Ratio
ZHSHF trades at -14.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ZHSHF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Zhongsheng Group Holdings Limited at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.10 times EBITDA. This is generally considered low.
How Well Does ZHSHF Make Money?
Net Profit Margin
For every $100 in sales, Zhongsheng Group Holdings Limited keeps $-1.00 as profit after all expenses.
Operating Margin
Core operations generate 0.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.57 in profit for every $100 of shareholder equity.
ROA
Zhongsheng Group Holdings Limited generates $-1.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zhongsheng Group Holdings Limited generates limited operating cash flow of $8.30B, signaling weaker underlying cash strength.
Free Cash Flow
Zhongsheng Group Holdings Limited produces free cash flow of $5.41B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.28 in free cash annually.
FCF Yield
ZHSHF converts 22.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-14.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How ZHSHF Stacks Against Its Sector Peers
| Metric | ZHSHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -14.96 | 23.86 | Better (Cheaper) |
| ROE | -3.57% | 1107.00% | Weak |
| Net Margin | -1.00% | -612.00% (disorted) | Weak |
| Debt/Equity | 1.10 | 0.72 | Weak (High Leverage) |
| Current Ratio | 1.57 | 2.66 | Neutral |
| ROA | -1.57% | -30467.00% (disorted) | Weak |
ZHSHF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zhongsheng Group Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.85%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-29.53%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-56.45%
Industry Style: Cyclical, Growth, Discretionary
Declining