China Everbright Environment Group Limited (0257.HK) stock analysis

In our weekly check, China Everbright Environment Group Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5.

About China Everbright Environment Group Limited

China Everbright Environment Group Limited is an Industrials company (Engineering & Construction) based in Hong Kong, listed on HKSE as 0257.HK.

What our checks show for 0257.HK

Red flags

• Net debt is 8.1x a year of EBITDA (debt/equity 1.72). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.4x): interest is paid from cash or new debt.
• Revenue fell 9.7% a year over the last 3 years.
• The dividend takes 282% of profit: little cushion if profit falls.
• The stock has fallen as much as 90% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 2.2% a year of growth in revenue.
• Earnings per share fell 5.1% a year over the last 3 years.
• Net profit fell 3.7% a year over the last 3 years.
• Return on capital (ROCE) is only 5.3%.

Strengths

• The net margin rose by 1.3 points over 5 years, to 14.9%.
• The gross margin is 40.3% and has risen by 7.3 points: pricing power is holding.
• Operating cash flow is 2.95x net profit: the profit arrives as real cash.
• Free cash flow is 37.3% of revenue: cash for dividends, buybacks or growth.
• The price is 7.1 times earnings (P/E), reasonable for its growth.
• Beta 0.55: the stock usually moves less than the market.

Similar companies

5398.KL · EME · HOT.DE · WSP.TO · ACS.MC · FER.MC

Questions

What grade does China Everbright Environment Group Limited (0257.HK) have?

In our weekly check, China Everbright Environment Group Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0257.HK stock?

This week's biggest flags for China Everbright Environment Group Limited: High debt, Weak interest cover, Weak revenue growth. In total 9 of 25 checks show a warning or a red flag.

What does China Everbright Environment Group Limited do?

China Everbright Environment Group Limited is an Industrials company (Engineering & Construction) based in Hong Kong, listed on HKSE as 0257.HK.

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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