China Construction Bank Corporation (601939.SS) stock analysis

In our weekly check, China Construction Bank Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 0, red flags: 11.

About China Construction Bank Corporation

China Construction Bank Corporation is a Financial Services company (Banks - Diversified) based in China, listed on SHH as 601939.SS.

What our checks show for 601939.SS

Red flags

• The net margin fell by 17.2 points over 5 years, to 28.9%: the company keeps less of each sale as profit.
• The gross margin fell by 45.7 points, to 54.3%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 9.7% a year.
• Free cash flow is negative (-202% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 67% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 16.7 years.
• Return on capital (ROCE) is only 1.1%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Strengths

• Analysts expect the net margin to improve by 12.4 points from today's 28.9%.
• Revenue grew 24.9% a year over the last 3 years.
• The company keeps 28.9% of its revenue as net profit.
• The dividend takes 16% of profit: there is a cushion.
• A large company: market value $388 billion.
• The price moves calmly: 20% annual volatility.

Similar companies

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Questions

What grade does China Construction Bank Corporation (601939.SS) have?

In our weekly check, China Construction Bank Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 0, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 601939.SS stock?

This week's biggest flags for China Construction Bank Corporation: Margins falling, Gross margin falling, Profits not backed by cash. In total 11 of 25 checks show a warning or a red flag.

What does China Construction Bank Corporation do?

China Construction Bank Corporation is a Financial Services company (Banks - Diversified) based in China, listed on SHH as 601939.SS.

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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