Buffett Brain · Research note
Score updated 5 Oct 2026
0941.HK· Communication Services
China Mobile
China Mobile's valuation is attractive, but its moat is weak and ROIC trails sector leaders.
Buffett fit
Weak fit
Owner
44
Durability
78
Management
52
Price
76
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.
If we owned 100% of China Mobile, the next decade would focus on maintaining its massive subscriber base and exploring growth in IoT and cloud services.
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China Mobile's business is durable due to its scale and the essential nature of communication services.
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The company has a conservative debt policy with a Debt/Equity of 0.07 and interest coverage of 56.2, which is prudent.
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With a of 11.2 and an EV/ of 8.6, the valuation appears reasonable.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Net income of $137.1B indicates strong cash generation.
- 2Interest coverage of 56.2 suggests financial stability.
- 3Debt/Equity ratio of 0.07 reflects conservative .
- 4Earnings yield of 8.95% provides an attractive valuation.
Concerns
5- 1 of 9.8% is below sector top-quintile, indicating efficiency issues.
- 2 of 58.2% lags behind the sector's top-quintile cutoff of 74.1%.
- 3 of 15% is below sector leaders, suggesting competitive pressure.
- 4Share count CAGR of 1.71% over 5 years indicates dilution risk.
Price history
$78.85+62.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
China Mobile provides a broad range of communication services including mobile communications, broadband, and IoT. The revenue is primarily generated from mobile services, contributing significantly to its $1.05T revenue. at 15% are below sector top-quintile, indicating competitive pressures. The unit economics hinge on scale, but of 9.8% suggests limited reinvestment efficiency.
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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