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Hongcheng Environmental Technology Co (HKSE:02265) Profitability Rank : 8 (As of Dec. 2023)


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What is Hongcheng Environmental Technology Co Profitability Rank?

Hongcheng Environmental Technology Co has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Hongcheng Environmental Technology Co's Operating Margin % for the quarter that ended in Dec. 2023 was 19.01%. As of today, Hongcheng Environmental Technology Co's Piotroski F-Score is 5.


Competitive Comparison of Hongcheng Environmental Technology Co's Profitability Rank

For the Waste Management subindustry, Hongcheng Environmental Technology Co's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hongcheng Environmental Technology Co's Profitability Rank Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Hongcheng Environmental Technology Co's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Hongcheng Environmental Technology Co's Profitability Rank falls into.



Hongcheng Environmental Technology Co Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Hongcheng Environmental Technology Co has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Hongcheng Environmental Technology Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=12.232 / 64.346
=19.01 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Hongcheng Environmental Technology Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Hongcheng Environmental Technology Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.7%.

4. Consistency of the profitability

5. Predictability Rank


Hongcheng Environmental Technology Co Profitability Rank Related Terms

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Hongcheng Environmental Technology Co (HKSE:02265) Business Description

Traded in Other Exchanges
N/A
Address
Yeyan Road North, Dadongzhuang Village North, Shahe Town, Shandong Province, Yantai, Laizhou, CHN
Hongcheng Environmental Technology Co Ltd is an investment holding company. The company and its subsidiaries are engaged in the provision of gold mine hazardous waste treatment services and recycling and extracting therefrom resources with economic value for sale, such as pyrite concentrate.

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