Chengzhi Co Ltd Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Chengzhi Co Ltd - Alpha Spread

Chengzhi Co Ltd
SZSE:000990

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Chengzhi Co Ltd
SZSE:000990
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Price: 7.53 CNY 4.15% Market Closed
Market Cap: 8.9B CNY
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Chengzhi Co Ltd

Revenue
11.5B CNY
Cost of Revenue
-9.7B CNY
Gross Profit
1.9B CNY
Operating Expenses
-904.2m CNY
Operating Income
957.5m CNY
Other Expenses
-556.9m CNY
Net Income
400.7m CNY

Margins Comparison
Chengzhi Co Ltd Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
CN
Chengzhi Co Ltd
SZSE:000990
9.2B CNY
16%
8%
3%
IN
Deep Polymers Ltd
BSE:541778
17.1T INR
24%
9%
6%
SA
Saudi Basic Industries Corporation SJSC
SAU:2010
228.3B SAR
17%
2%
-2%
ID
Chandra Asri Petrochemical Tbk PT
IDX:TPIA
772.1T IDR
2%
-3%
-4%
US
Dow Inc
NYSE:DOW
38.4B USD
11%
5%
3%
UK
LyondellBasell Industries NV
NYSE:LYB
31.6B USD
12%
8%
6%
KR
LG Chem Ltd
KRX:051910
28T KRW
16%
4%
0%
US
Westlake Corp
NYSE:WLK
19.3B USD
16%
8%
2%
CN
Hengli Petrochemical Co Ltd
SSE:600346
101.8B CNY
8%
7%
3%
CN
Rongsheng Petrochemical Co Ltd
SZSE:002493
92.4B CNY
5%
4%
1%
IN
Solar Industries India Ltd
NSE:SOLARINDS
1.1T INR
49%
22%
15%
Country CN
Market Cap 9.2B CNY
Gross Margin
16%
Operating Margin
8%
Net Margin
3%
Country IN
Market Cap 17.1T INR
Gross Margin
24%
Operating Margin
9%
Net Margin
6%
Country SA
Market Cap 228.3B SAR
Gross Margin
17%
Operating Margin
2%
Net Margin
-2%
Country ID
Market Cap 772.1T IDR
Gross Margin
2%
Operating Margin
-3%
Net Margin
-4%
Country US
Market Cap 38.4B USD
Gross Margin
11%
Operating Margin
5%
Net Margin
3%
Country UK
Market Cap 31.6B USD
Gross Margin
12%
Operating Margin
8%
Net Margin
6%
Country KR
Market Cap 28T KRW
Gross Margin
16%
Operating Margin
4%
Net Margin
0%
Country US
Market Cap 19.3B USD
Gross Margin
16%
Operating Margin
8%
Net Margin
2%
Country CN
Market Cap 101.8B CNY
Gross Margin
8%
Operating Margin
7%
Net Margin
3%
Country CN
Market Cap 92.4B CNY
Gross Margin
5%
Operating Margin
4%
Net Margin
1%
Country IN
Market Cap 1.1T INR
Gross Margin
49%
Operating Margin
22%
Net Margin
15%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Chengzhi Co Ltd Competitors

Country Company Market Cap ROE ROA ROCE ROIC
CN
Chengzhi Co Ltd
SZSE:000990
9.2B CNY
2%
2%
5%
3%
IN
Deep Polymers Ltd
BSE:541778
17.1T INR
9%
5%
8%
6%
SA
Saudi Basic Industries Corporation SJSC
SAU:2010
228.3B SAR
-1%
-1%
1%
2%
ID
Chandra Asri Petrochemical Tbk PT
IDX:TPIA
772.1T IDR
-3%
-2%
-1%
-1%
US
Dow Inc
NYSE:DOW
38.4B USD
6%
2%
4%
4%
UK
LyondellBasell Industries NV
NYSE:LYB
31.6B USD
18%
6%
11%
9%
KR
LG Chem Ltd
KRX:051910
28T KRW
0%
0%
3%
2%
US
Westlake Corp
NYSE:WLK
19.3B USD
3%
1%
5%
4%
CN
Hengli Petrochemical Co Ltd
SSE:600346
101.8B CNY
14%
3%
12%
5%
CN
Rongsheng Petrochemical Co Ltd
SZSE:002493
92.4B CNY
7%
1%
6%
4%
IN
Solar Industries India Ltd
NSE:SOLARINDS
1.1T INR
31%
17%
35%
23%
Country CN
Market Cap 9.2B CNY
ROE
2%
ROA
2%
ROCE
5%
ROIC
3%
Country IN
Market Cap 17.1T INR
ROE
9%
ROA
5%
ROCE
8%
ROIC
6%
Country SA
Market Cap 228.3B SAR
ROE
-1%
ROA
-1%
ROCE
1%
ROIC
2%
Country ID
Market Cap 772.1T IDR
ROE
-3%
ROA
-2%
ROCE
-1%
ROIC
-1%
Country US
Market Cap 38.4B USD
ROE
6%
ROA
2%
ROCE
4%
ROIC
4%
Country UK
Market Cap 31.6B USD
ROE
18%
ROA
6%
ROCE
11%
ROIC
9%
Country KR
Market Cap 28T KRW
ROE
0%
ROA
0%
ROCE
3%
ROIC
2%
Country US
Market Cap 19.3B USD
ROE
3%
ROA
1%
ROCE
5%
ROIC
4%
Country CN
Market Cap 101.8B CNY
ROE
14%
ROA
3%
ROCE
12%
ROIC
5%
Country CN
Market Cap 92.4B CNY
ROE
7%
ROA
1%
ROCE
6%
ROIC
4%
Country IN
Market Cap 1.1T INR
ROE
31%
ROA
17%
ROCE
35%
ROIC
23%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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