BYD Company Limited (002594.SZ) stock analysis

In our weekly check, BYD Company Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 3.

About BYD Company Limited

BYD Company Limited is a Consumer Cyclical company (Auto - Manufacturers) based in China, listed on SHZ as 002594.SZ.

What our checks show for 002594.SZ

Red flags

• The net margin is only 3.9%: little room if costs rise.
• Free cash flow is negative (-7% of revenue): the business spends more cash than it brings in.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The stock has fallen as much as 58% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 7.9%.

Strengths

• Operating profit covers interest 9.7 times over.
• The net margin rose by 2.5 points over 5 years, to 3.9%.
• The gross margin is 17.4% and has risen by 4.7 points: pricing power is holding.
• Operating cash flow is 2.31x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 32.2% a year over the next years.
• Analysts expect revenue to grow about 17.3% a year over the next years.

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Questions

What grade does BYD Company Limited (002594.SZ) have?

In our weekly check, BYD Company Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 002594.SZ stock?

This week's biggest flags for BYD Company Limited: Thin margins, Weak free cash flow, Heavy stock pay. In total 5 of 25 checks show a warning or a red flag.

What does BYD Company Limited do?

BYD Company Limited is a Consumer Cyclical company (Auto - Manufacturers) based in China, listed on SHZ as 002594.SZ.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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