Zhuzhou CRRC Times Electric Co., Ltd. (3898.HK) stock analysis

In our weekly check, Zhuzhou CRRC Times Electric Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1.

About Zhuzhou CRRC Times Electric Co., Ltd.

Zhuzhou CRRC Times Electric Co., Ltd. is an Industrials company (Railroads) based in China, listed on HKSE as 3898.HK.

What our checks show for 3898.HK

Red flags

• The stock has fallen as much as 81% from a peak. Would you have held through that?

Warning signs

• Free cash flow is only 1% of revenue.
• Free cash flow covers the dividend only 0.2 times.
• The price swings a lot: 40.5% annual volatility. Expect large ups and downs.
• Return on capital (ROCE) is only 8.9%.

Strengths

• Net debt is only 0.4x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 134 times over.
• Analysts expect earnings per share to grow about 12% a year over the next years.
• Revenue grew 17.6% a year over the last 3 years.
• Earnings per share grew 19.1% a year over the last 3 years.
• Net profit grew 17.1% a year over the last 3 years.

Similar companies

WAB · RAIL3.SA · CNI · NSC · CP · CSX

Questions

What grade does Zhuzhou CRRC Times Electric Co., Ltd. (3898.HK) have?

In our weekly check, Zhuzhou CRRC Times Electric Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3898.HK stock?

This week's biggest flags for Zhuzhou CRRC Times Electric Co., Ltd.: Deep past fall, Weak free cash flow, Dividend stretched. In total 5 of 25 checks show a warning or a red flag.

What does Zhuzhou CRRC Times Electric Co., Ltd. do?

Zhuzhou CRRC Times Electric Co., Ltd. is an Industrials company (Railroads) based in China, listed on HKSE as 3898.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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