Buffett Brain · Research note
Score updated 5 Oct 2026
600941.SS· Communication Services
China Mobile
China Mobile's robust cash flow and low debt are offset by subpar returns on invested capital and limited pricing power.
Buffett fit
Weak fit
Owner
42
Durability
78
Management
52
Price
59
Score updated 5 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Communication Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning the entirety of China Mobile would involve managing a vast network of communication services in a highly regulated market.
The full reasoning comes with a free account.
China Mobile has shown consistent profitability over the past five years, with a maximum EPS decline of only 4.36%.
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China Mobile's share count has grown at a CAGR of 1.71% over five years, indicating some dilution.
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With a ratio of 15.1 and an earnings yield of 6.63%, the valuation doesn't provide a significant .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Low debt/equity ratio of 0.07 indicates strong financial health.
- 2Interest coverage of 56.2 suggests the ability to comfortably meet interest obligations.
- 3Consistent profitability over the past five years, with no loss years.
- 4 of 58.2% shows good cost management.
Concerns
5- 1 of 8.77% is below the sector's top quintile, indicating limited capital efficiency.
- 2 of 15% is below the sector top-quintile cutoff of 21.9%.
- 3 yield of 3.67% is below the desired 8-10% threshold.
- 4Share count CAGR of 1.71% suggests dilution without clear value creation.
Price history
$95.80+66.3%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
China Mobile operates in communication services, providing mobile communications, broadband networks, and cloud computing services primarily in China. It generates significant revenue from mobile communications, with a net income of $137.1B and a of $75.97B. The company's of 58.2% reflects its ability to manage costs effectively. However, its of 15% is below the sector's top quintile, indicating potential challenges in profitability.
How this analysis has moved
The call has held across 2 reviews.
Sep 27, 2026 → Oct 4, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Communication Services
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