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MECOM Power and Construction (HKSE:01183) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
MECOM Power and Construction Cash Conversion Cycle Related Terms
MECOM Power and Construction Cash Conversion Cycle Historical Data
* 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.
MECOM Power and Construction Cash Conversion Cycle Chart
HKSE:01183 vs NUE, STLD, RS: Cash Conversion Cycle Comparison
For the Steel subindustry, MECOM Power and Construction's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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.
MECOM Power and Construction Cash Conversion Cycle vs Steel Industry
For the Steel industry and Basic Materials sector, MECOM Power and Construction's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where MECOM Power and Construction's Cash Conversion Cycle falls into.
MECOM Power and Construction Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
MECOM Power and Construction's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
MECOM Power and Construction (HKSE:01183) has a Cash Conversion Cycle of 56.77 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on MECOM Power and Construction and its competitors.
Is MECOM Power and Construction's Cash Conversion Cycle too high?
MECOM Power and Construction's current Cash Conversion Cycle is 56.77. The Steel industry median Cash Conversion Cycle is 93.40. MECOM Power and Construction's value of 56.77 is 39.2% below this industry median. Overall, MECOM Power and Construction has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MECOM Power and Construction's Cash Conversion Cycle compare to NUE and STLD?
MECOM Power and Construction's Cash Conversion Cycle of 56.77 can be compared against companies in the Steel industry. The industry median Cash Conversion Cycle is 93.40. MECOM Power and Construction's value of 56.77 is 39.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Steel company?
The median Cash Conversion Cycle among Steel companies is 93.40, based on 611 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MECOM Power and Construction's current Cash Conversion Cycle of 56.77 is 39.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on MECOM Power and Construction and its competitors. For the Steel industry, the median Cash Conversion Cycle is 93.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MECOM Power and Construction's current Cash Conversion Cycle is 56.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MECOM Power and Construction stock overvalued right now?
Based on GuruFocus' analysis, MECOM Power and Construction (HKSE:01183) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.23, compared to a current price of HK$0.14 — trading 41.3% below its estimated fair value. The current Cash Conversion Cycle is 56.77 and 39.2% below the Steel industry median of 93.40. MECOM Power and Construction's overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For MECOM Power and Construction (HKSE:01183), the current Cash Conversion Cycle is 56.77 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MECOM Power and Construction (HKSE:01183) Overvalued in 2026?
Based on GuruFocus' analysis, MECOM Power and Construction stock appears to be undervalued.
The current stock price of HK$0.14 is trading 41.3% below its estimated GF Value™ of HK$0.23.
GuruFocus considers MECOM Power and Construction to be Significantly Undervalued.
Key valuation signals for HKSE:01183:
Cash Conversion Cycle: 56.77
GF Value™: HK$0.23 vs. price of HK$0.14 (41.3% below fair value)
No single metric tells the full story. See the HKSE:01183 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MECOM Power and Construction Ltd is a construction company engaged in construction of power substation and structural steelworks. Its scope covers steel structures business, including research and development and sales of new construction materials; construction business, including construction and fitting out works, high voltage power substation construction and its system installation works, E&M engineering services works, facilities management and operation and maintenance services, construction, operation and maintenance of data centres; and electric vehicles related services. Its segments are: Construction business, Electric vehicles business, and Intelligent manufacturing business. It derives maximum revenue from Intelligent manufacturing business.
65GF Score
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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