FFHL  Fuwei Films (Holdings) Co. Ltd...

Exchange

NASDAQ

Sector

Capital Goods

Industry

Specialty Chemicals

Market Cap.

15.0M

Poor Cash Return on Invested Capital over the past 5 years

FFHL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

FFHL has only created $3.96 of cash for every $100 invested.
Figures in CNY. Fiscal year ends in December
20072008200920102011
Free Cash Flow 79.00M 23.93M -77.83M 95.62M -49.96M
divided by
Invested Capital 482.25M 519.78M 510.04M 410.52M 540.51M
Cash ROIC 16.38% 4.60% -15.26% 23.29% -9.24%

Poor Return on Equity over the past 5 years

FFHL has shown an inability to deliver strong results for shareholders. This could be due to poor management, FFHL operating in a highly competitive industry, or having a weak business in general.

FFHL has only generated $3.92 of Earnings for every $100 of Shareholders' Equity.
Figures in CNY. Fiscal year ends in December
20072008200920102011
Net Income 45.39M 18.16M -18.96M 40.78M 21.08M
divided by
Stockholders' Equity 513.20M 530.60M 511.57M 552.54M 573.67M
Return on Equity 8.84% 3.42% -3.71% 7.38% 3.67%

Good Business Performance over the past 8 years

It's likely FFHL has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is FFHL has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

FFHL has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in CNY. Fiscal year ends in December
20042005200620072008200920102011
Free Cash Flow 3.80M 7.34M 18.32M 79.00M 23.93M -77.83M 95.62M -49.96M