China Mobile (FRA:CTM) Financial Strength: 8 (As of Jun. 2026) — 11% Below Median

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FRA:CTM China Mobile Ltd FRA:CTM
84 GF Score
Price €8.56
GF Value €8.96
! 6 Warning Signs
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What is China Mobile Financial Strength?

China Mobile FRA:CTM 84 Financial Strength is 8 as of Jun. 2026, which is 11% below its 10-year median of 9.00. GuruFocus rates FRA:CTM with a GF Score™ of 84/100 and a GF Value™ of €8.96. The stock has 6 warning signs investors should review.

China Mobile has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

China Mobile Ltd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

China Mobile's Interest Coverage for the quarter that ended in Jun. 2026 was 72.25. China Mobile's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.09. As of today, China Mobile's Altman Z-Score is 2.57.


China Mobile  (FRA:CTM) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

China Mobile has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


China Mobile Financial Strength Related Terms


FRA:CTM vs VZ, TMUS, T: Financial Strength Comparison

For the Telecom Services subindustry, China Mobile'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.


China Mobile Financial Strength vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, China Mobile's Financial Strength distribution charts can be found below:

* The bar in red indicates where China Mobile's Financial Strength falls into.


FRA:CTM
84GF Score
China Mobile Ltd FRA:CTM
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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China Mobile 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:

China Mobile's Interest Expense for the months ended in Jun. 2026 was €-107 Mil. Its Operating Income for the months ended in Jun. 2026 was €7,738 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €6,744 Mil.

China Mobile's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*7738.059/-107.094
=72.25

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

China Mobile's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5916.563 + 6743.596) / 139149.016
=0.09

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.

China Mobile has a Z-score of 2.57, indicating it is in Grey Zones. This implies that China Mobile is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.57 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 8 mean?
China Mobile (FRA:CTM) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on China Mobile and its competitors. This is 11% below median its historical median of 9.00. Over the past decade, China Mobile's Financial Strength has ranged from 7.00 to 10.00.
Is China Mobile's Financial Strength too high?
China Mobile's current Financial Strength of 8 is 11% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 10.00. Overall, China Mobile has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does China Mobile's Financial Strength compare to VZ and TMUS?
China Mobile's Financial Strength of 8 can be compared against companies in the Telecommunication Services industry. Historically, China Mobile's own Financial Strength has ranged from 7.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Telecommunication Services company?
A good Financial Strength depends on the Telecommunication Services industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on China Mobile and its competitors. China Mobile's current Financial Strength is 8, which is 11% below median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Mobile stock overvalued right now?
China Mobile (FRA:CTM) has a current Financial Strength of 8. The stock's GF Value™ is €8.96, compared to a current price of €8.56 — trading 4.5% below its estimated fair value. The current Financial Strength is 8, which is 11% below median its 10-year median of 9.00. China Mobile's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For China Mobile (FRA:CTM), the current Financial Strength is 8 as of Jun. 2026. 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 China Mobile (FRA:CTM) Overvalued in 2026?

Based on GuruFocus' analysis, China Mobile stock appears to be undervalued. The current stock price of €8.56 is trading 4.5% below its estimated GF Value™ of €8.96.

Key valuation signals for FRA:CTM:

  • Financial Strength: 8 (11% below median its 10-year median of 9.00)
  • GF Value™: €8.96 vs. price of €8.56 (4.5% below fair value)
  • GF Score™: 84/100 with 6 warning signs

No single metric tells the full story. See the FRA:CTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Mobile Business Description

Other Exchanges 00941:Hong Kong600941:China
Address 99 Queen’s Road Central, 60th Floor, The Center, Hong Kong, HKG
China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (1 billion) but also the largest in the world. It has 60% of the total wireless market in China and over 50% of the fixed-line broadband market. The firm has largely rolled out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 3G/4G/5G network through China Broadnet. Growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.
84GF Score

Get the complete analysis for FRA:CTM

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€8.56
Price
€8.96
GF Value