What is Sunac China Holdings Financial Strength?
Sunac China Holdings has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Sunac China Holdings Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
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). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
Sunac China Holdings did not have earnings to cover the interest expense.
Sunac China Holdings's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.45.
As of today, Sunac China Holdings's Altman Z-Score is 0.17.
Competitive Comparison of Sunac China Holdings's Financial Strength
For the Real Estate - Development subindustry, Sunac China Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Sunac China Holdings's Financial Strength Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Sunac China Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sunac China Holdings's Financial Strength falls into.
Sunac China Holdings Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Sunac China Holdings's Interest Expense for the
months ended in Dec. 2023 was €-341 Mil. Its Operating Income for the
months ended in Dec. 2023 was €-636 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €12,466 Mil.
Sunac China Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is
| Sunac China Holdings did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Sunac China Holdings's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Sunac China Holdings has a Z-score of 0.17, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.17 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Sunac China Holdings (STU:SCNR) Business Description
Traded in Other Exchanges
Address
No.278, Hongqi Road, Building 1, East Side in Hopsca Center International, Nankai District, Tianjin, CHN, 300381
Property developer Sunac China commenced operations in 2003 and listed on the Hong Kong exchange in 2010. Based in Tianjin, Sunac is geographically well diversified across China like many large-scale listed PRC developers, and into major cities including Shanghai, Beijing, Guangzhou, Shenzhen and Hainan. Sunac is founded by Sun Hongbin, major shareholder and chairman of the company that previously established Sunco Group and adopted a high leverage strategy, which Sunac also then embraced. On top of aggressive asset expansion in recent years, the significant acquisition of a stake in non-related business Leshi Internet, as well as the landmark portfolio acquisition of Dalian Wanda theme park assets on the back of a highly leveraged balance sheet, have also garnered much market attention.
Sunac China Holdings (STU:SCNR) Headlines
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