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Fundamental analysis 002668.SZ (Guangdong TCL Smart Home Appliances Co., Ltd.)

Updated on 10/13/2026

Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.

We analyzed Guangdong TCL Smart Home Appliances stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 9/10, meaning high quality, and a P/FCF valuation multiple of 5.7×.

This is the setup we look for: Guangdong TCL Smart Home Appliances passes a large majority of our quality criteria while trading at a low free cash flow multiple. That is exactly the "quality company at the right price" profile, the one worth a closer look.

Sector: Furnishings, Fixtures & Appliances. Listing: SZ. Current price: 9.22 CNY.

Lubin scoring methodology

Guangdong TCL Smart Home Appliances Co., Ltd. (002668.SZ)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).

The 10 quantitative criteria analyzed

  1. Profitable: net margin > 5%
  2. Growing revenue: revenue growing > 10%/year over 5 years
  3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
  4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
  5. Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
  6. Expanding margins: operating margin widens over 5 years (operating leverage)
  7. Return on invested capital: Cash ROCE > 15% per year
  8. Debt under control: net debt repayable in less than 3 years of free cash flow
  9. Earnings converted to cash: free cash flow exceeds accounting net income
  10. Net collection period: short or negative cash conversion cycle

Its price against peers

Against the 5 other Furnishings, Fixtures & Appliances stocks we have scored, Guangdong TCL Smart Home Appliances trades at 5.7× its free cash flow, versus a median of 27.1× for that basket. On price alone, Guangdong TCL Smart Home Appliances is therefore cheaper than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.

Frequently asked questions

Is Guangdong TCL Smart Home Appliances a quality stock?

Guangdong TCL Smart Home Appliances gets a quality score of 9/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Guangdong TCL Smart Home Appliances's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Guangdong TCL Smart Home Appliances's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Guangdong TCL Smart Home Appliances stock is 5.7×. At Lubin Investment, valuation is judged separately from quality.

Where to see Guangdong TCL Smart Home Appliances's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/002668.SZ?lng=en.

Other stocks in the Furnishings, Fixtures & Appliances sector

Go further

👉 See the full interactive analysis of 002668.SZ

Other resources : All stocks in the Furnishings, Fixtures & Appliances sector.