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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.49
CHEUY's Cash to Debt is ranked higher than
67% of the 1325 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.36 vs. CHEUY: 0.49 )
CHEUY' s 10-Year Cash to Debt Range
Min: 0.08   Max: 1.14
Current: 0.49

0.08
1.14
Equity to Asset 0.84
CHEUY's Equity to Asset is ranked higher than
94% of the 1290 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.45 vs. CHEUY: 0.84 )
CHEUY' s 10-Year Equity to Asset Range
Min: 0.77   Max: 0.89
Current: 0.84

0.77
0.89
F-Score: 3
Z-Score: 4.62
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. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

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.

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

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 40.37
CHEUY's Operating margin (%) is ranked higher than
84% of the 1321 Companies
in the Global Real Estate - General industry.

( Industry Median: 22.53 vs. CHEUY: 40.37 )
CHEUY' s 10-Year Operating margin (%) Range
Min: 19.84   Max: 158.75
Current: 40.37

19.84
158.75
Net-margin (%) 152.13
CHEUY's Net-margin (%) is ranked higher than
97% of the 1320 Companies
in the Global Real Estate - General industry.

( Industry Median: 15.11 vs. CHEUY: 152.13 )
CHEUY' s 10-Year Net-margin (%) Range
Min: 74.76   Max: 1861.58
Current: 152.13

74.76
1861.58
ROE (%) 9.47
CHEUY's ROE (%) is ranked higher than
74% of the 1306 Companies
in the Global Real Estate - General industry.

( Industry Median: 7.66 vs. CHEUY: 9.47 )
CHEUY' s 10-Year ROE (%) Range
Min: 4.24   Max: 39.39
Current: 9.47

4.24
39.39
ROA (%) 7.98
CHEUY's ROA (%) is ranked higher than
90% of the 1328 Companies
in the Global Real Estate - General industry.

( Industry Median: 3.15 vs. CHEUY: 7.98 )
CHEUY' s 10-Year ROA (%) Range
Min: 3.67   Max: 33.69
Current: 7.98

3.67
33.69
ROC (Joel Greenblatt) (%) 11.80
CHEUY's ROC (Joel Greenblatt) (%) is ranked higher than
63% of the 1278 Companies
in the Global Real Estate - General industry.

( Industry Median: 18.26 vs. CHEUY: 11.80 )
CHEUY' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 4.14   Max: 87.38
Current: 11.8

4.14
87.38
Revenue Growth (%) 6.50
CHEUY's Revenue Growth (%) is ranked higher than
70% of the 1004 Companies
in the Global Real Estate - General industry.

( Industry Median: 5.10 vs. CHEUY: 6.50 )
CHEUY' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 37.4
Current: 6.5

0
37.4
EBITDA Growth (%) -15.80
CHEUY's EBITDA Growth (%) is ranked higher than
52% of the 830 Companies
in the Global Real Estate - General industry.

( Industry Median: 7.20 vs. CHEUY: -15.80 )
CHEUY' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 52.1
Current: -15.8

0
52.1
EPS Growth (%) 17.90
CHEUY's EPS Growth (%) is ranked higher than
76% of the 767 Companies
in the Global Real Estate - General industry.

( Industry Median: 8.30 vs. CHEUY: 17.90 )
CHEUY' s 10-Year EPS Growth (%) Range
Min: -47.3   Max: 62.5
Current: 17.9

-47.3
62.5
» CHEUY's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2012

CHEUY Guru Trades in Q2 2012

Ken Fisher 55,418 sh (-99.53%)
Martin Whitman 17,667,000 sh (-41.43%)
» More
Q3 2012

CHEUY Guru Trades in Q3 2012

Martin Whitman 16,220,000 sh (+50.64%)
Martin Whitman 10,393,450 sh (+50.64%)
Ken Fisher 29,506 sh (-46.76%)
» More
Q4 2012

CHEUY Guru Trades in Q4 2012

Ken Fisher 14,649 sh (-50.35%)
Martin Whitman 10,149,000 sh (-2.35%)
» More
Q1 2013

CHEUY Guru Trades in Q1 2013

Ken Fisher Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with CHEUY

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Martin Whitman 2013-01-31 Reduce -36.44%2.37%$14.31 - $17.03 $ 17.5613%6451000
Martin Whitman 2012-07-31 Add 50.64%3.08%$11.17 - $13.4 $ 17.5644%16220000
Martin Whitman 2012-04-30 Reduce -41.43%4.76%$12.45 - $25.85 $ 17.5625%17667000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Cheung Kong Holdings, Ltd.

Third Avenue Management Commentary on Cheung Kong - May 24, 2012

Cheung Kong (CHEUY)


Cheung Kong reported a 72% increase in 2011 earnings per share and 16% increase in NAV per share to HK$132.20. The company’s results benefitted from gains on timely resource conversions in early 2011 consisting of sales of stakes of ports and commercial real estate assets in separate IPOs. Although many analysts exclude one-time gains like these in valuing a company, they are important in our analysis at Third Avenue as they demonstrate management’s willingness to be opportunistic in not only buying but also selling assets to increase NAV. Additionally, the large gains confirm our belief that many of the company’s assets are worth considerably more than stated book value. Cheung Kong’s underlying profit increased 15%, driven by a 26% increase in contribution from property sales and 13% increase in property leasing income.

The company also benefitted from strong results at 50%-owned subsidiary Hutchison Whampoa, whose common stock is also held in the Fund. Hutchison Whampoa’s revenue and earnings before interest and taxes (“EBIT”) increased 22% and 33%, respectively. The growth was broad based including Ports (revenue up 12%; EBIT up 14%), Retail (revenue up 17%; EBIT up 19%), Property (revenue up 7%; EBIT up 8%), Infrastructure (revenue up 67%; EBIT up 57%) and Energy (revenue up 41%; EBIT up 79%). The company appears to be taking advantage of depressed economic conditions in Europe as it made a significant acquisition its infrastructure business in 2011 (Northumbrian Water group Limited) and announced the acquisition of Orange Australia in 2012 to bolster its telecommunications operations. Cheung Kong maintained a very strong financial position, with HK$20 billion in cash and a net debt to capital ratio of only 7.6%.

Cheung Kong maintained a very strong financial position with HK$20 billion in cash and a net debt to capital ratio of only 7.6%. Cheung Kong Common traded at a 22% discount to reported net asset value at quarter end, compared to an average premium to book value of 1% over the last five years. Chairman Lee Ka-shing spent $14 million during the first four months of 2012 buying Cheung Kong Common in the open market and now owns 43.3% of the outstanding shares.


Check out Third Avenue Management latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 9.90
CHEUY's P/E(ttm) is ranked higher than
73% of the 1115 Companies
in the Global Real Estate - General industry.

( Industry Median: 12.00 vs. CHEUY: 9.90 )
CHEUY' s 10-Year P/E(ttm) Range
Min: 4.43   Max: 20.61
Current: 9.9

4.43
20.61
P/B 0.90
CHEUY's P/B is ranked higher than
67% of the 1270 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.98 vs. CHEUY: 0.90 )
CHEUY' s 10-Year P/B Range
Min: 0.59   Max: 1.64
Current: 0.9

0.59
1.64
P/S 14.71
CHEUY's P/S is ranked lower than
86% of the 1349 Companies
in the Global Real Estate - General industry.

( Industry Median: 2.67 vs. CHEUY: 14.71 )
CHEUY' s 10-Year P/S Range
Min: 5.91   Max: 35.41
Current: 14.71

5.91
35.41
EV-to-EBIT 41.70
CHEUY's EV-to-EBIT is ranked lower than
64% of the 1158 Companies
in the Global Real Estate - General industry.

( Industry Median: 15.75 vs. CHEUY: 41.70 )
CHEUY' s 10-Year EV-to-EBIT Range
Min: 10.8   Max: 106.2
Current: 41.7

10.8
106.2
PEG 0.30
CHEUY's PEG is ranked higher than
78% of the 538 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.69 vs. CHEUY: 0.30 )
CHEUY' s 10-Year PEG Range
Min: 0.26   Max: 1.75
Current: 0.3

0.26
1.75
Shiller P/E 11.10
CHEUY's Shiller P/E is ranked higher than
77% of the 620 Companies
in the Global Real Estate - General industry.

( Industry Median: 14.13 vs. CHEUY: 11.10 )
CHEUY' s 10-Year Shiller P/E Range
Min: 6.29   Max: 27.22
Current: 11.1

6.29
27.22

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.07
CHEUY's Dividend Yield is ranked lower than
51% of the 958 Companies
in the Global Real Estate - General industry.

( Industry Median: 2.60 vs. CHEUY: 2.07 )
CHEUY' s 10-Year Dividend Yield Range
Min: 1.4   Max: 4.19
Current: 2.07

1.4
4.19
Dividend Payout 0.19
CHEUY's Dividend Payout is ranked higher than
72% of the 812 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.26 vs. CHEUY: 0.19 )
CHEUY' s 10-Year Dividend Payout Range
Min: 0.05   Max: 0.57
Current: 0.19

0.05
0.57
Dividend growth (3y) 8.90
CHEUY's Dividend growth (3y) is ranked higher than
79% of the 514 Companies
in the Global Real Estate - General industry.

( Industry Median: 5.00 vs. CHEUY: 8.90 )
CHEUY' s 10-Year Dividend growth (3y) Range
Min: -0.5   Max: 10.1
Current: 8.9

-0.5
10.1
Yield on cost (5-Year) 2.99
CHEUY's Yield on cost (5-Year) is ranked higher than
63% of the 978 Companies
in the Global Real Estate - General industry.

( Industry Median: 2.73 vs. CHEUY: 2.99 )
CHEUY' s 10-Year Yield on cost (5-Year) Range
Min: 1.99   Max: 5.96
Current: 2.99

1.99
5.96

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.90
CHEUY's Price/Tangible Book is ranked higher than
65% of the 1249 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.00 vs. CHEUY: 0.90 )
CHEUY' s 10-Year Price/Tangible Book Range
Min: 0.68   Max: 1.47
Current: 0.9

0.68
1.47
Price/DCF (Projected) 1.10
CHEUY's Price/DCF (Projected) is ranked higher than
65% of the 524 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.20 vs. CHEUY: 1.10 )
CHEUY' s 10-Year Price/DCF (Projected) Range
Min: 0.79   Max: 1.95
Current: 1.1

0.79
1.95
Price/Median PS Value 1.10
CHEUY's Price/Median PS Value is ranked higher than
67% of the 1199 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.00 vs. CHEUY: 1.10 )
CHEUY' s 10-Year Price/Median PS Value Range
Min: 0.46   Max: 2.99
Current: 1.1

0.46
2.99
Price/Graham Number 0.60
CHEUY's Price/Graham Number is ranked higher than
74% of the 1075 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.70 vs. CHEUY: 0.60 )
CHEUY' s 10-Year Price/Graham Number Range
Min: 0.37   Max: 1.13
Current: 0.6

0.37
1.13
Earnings Yield (Greenblatt) 2.40
CHEUY's Earnings Yield (Greenblatt) is ranked lower than
58% of the 1199 Companies
in the Global Real Estate - General industry.

( Industry Median: 6.20 vs. CHEUY: 2.40 )
CHEUY' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.9   Max: 9.3
Current: 2.4

0.9
9.3
Forward Rate of Return (Yacktman) -0.84
CHEUY's Forward Rate of Return (Yacktman) is ranked higher than
63% of the 829 Companies
in the Global Real Estate - General industry.

( Industry Median: 2.61 vs. CHEUY: -0.84 )
CHEUY' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -3.4   Max: 37
Current: -0.84

-3.4
37

Business Description

Industry: Real Estate Services » Real Estate - General
Compare:SUHJY, MITEY, BAM, HLDVF, HLPPY » details
Traded in other countries:00001.Hongkong, CHE.Germany
Cheung Kong is a property development and strategic investment corporation. The Company focuses on the sale and development of real estate properties in Hong Kong as well as in mainland China. The Company also has interests in Internet and information technology companies as well as life sciences and biotech firms.

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