CRRC Corporation Limited (1766.HK) stock analysis

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

About CRRC Corporation Limited

CRRC Corporation Limited is an Industrials company (Railroads) based in China, listed on HKSE as 1766.HK.

What our checks show for 1766.HK

Red flags

• The net margin is only 4.9%: little room if costs rise.
• The stock has fallen as much as 88% from a peak. Would you have held through that?

Warning signs

• Free cash flow is only 3.2% of revenue.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 6.8%.

Strengths

• Net debt is only 1.5x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 17.4 times over.
• Operating cash flow is 1.29x net profit: the profit arrives as real cash.
• The dividend takes 27% of profit: there is a cushion.
• The price is 13.5 times earnings (P/E), reasonable for its growth.
• A large company: market value $23.99 billion.

Similar companies

UNP · 0066.HK · 2633.TW · 601816.SS · CSX · CP

Questions

What grade does CRRC Corporation Limited (1766.HK) have?

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

What are the main risks of 1766.HK stock?

This week's biggest flags for CRRC Corporation Limited: Thin margins, Deep past fall, Weak free cash flow. In total 5 of 25 checks show a warning or a red flag.

What does CRRC Corporation Limited do?

CRRC Corporation Limited is an Industrials company (Railroads) based in China, listed on HKSE as 1766.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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