Fundamental analysis 600511.SS (China National Medicines Corporation Ltd.)

Updated on 10/07/2026

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

We analyzed China National Medicines stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 5/10, meaning medium quality, and a P/FCF valuation multiple of 10.2×.

China National Medicines trades at a low free cash flow multiple but fails part of our quality criteria. Mind the trap: a low price is not a discount if the business is deteriorating. The low multiple may simply reflect a real problem.

Sector: Medical Distribution. Listing: SS. Current price: 26.10 CNY.

Lubin scoring methodology

China National Medicines Corporation Ltd. (600511.SS)'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 Medical Distribution stocks we have scored, China National Medicines trades at 10.2× its free cash flow, versus a median of 18.1× for that basket. On price alone, China National Medicines 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 China National Medicines a quality stock?

China National Medicines gets a quality score of 5/10 (medium 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 China National Medicines'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 China National Medicines's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of China National Medicines stock is 10.2×. At Lubin Investment, valuation is judged separately from quality.

Where to see China National Medicines's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/600511.SS?lng=en.

Other stocks in the Medical Distribution sector

• PT Soho Global Health Tbk (SOHO.JK), score 10/10, P/FCF 28.3×
• McKesson (MCK), score 9/10, P/FCF 17.9×
• M1 Kliniken (M12.DE), score 9/10, P/FCF 9.8×
• PT Itama Ranoraya Tbk (IRRA.JK), score 8/10

Go further

👉 See the full interactive analysis of 600511.SS

Other resources : All stocks in the Medical Distribution sector.