Henderson Land Development Company Limited Fundamental Analysis (HKSE: 0012.HK)
Henderson Land Development Company Limited Fundamental Analysis (HKSE: 0012.HK)
Henderson Land Development Company Limited (HKSE: 0012.HK) shows moderate financial fundamentals with a PE ratio of 19.32, profit margin of 20.48%, and ROE of 2.11%. The company generates $33.4B in annual revenue with weak year-over-year growth of 1.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0012.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0012.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0012.HK trades at attractive valuation levels.
Growth Score
Weak0012.HK faces weak or negative growth trends.
Financial Health Score
Excellent0012.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent0012.HK achieves industry-leading margins.
Key Financial Metrics
Is 0012.HK Expensive or Cheap?
P/E Ratio
0012.HK trades at 19.32 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 0012.HK's PEG of 1.71 indicates fair valuation.
Price to Book
The market values Henderson Land Development Company Limited at 0.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.78 times EBITDA. This is generally considered low.
How Well Does 0012.HK Make Money?
Net Profit Margin
For every $100 in sales, Henderson Land Development Company Limited keeps $20.48 as profit after all expenses.
Operating Margin
Core operations generate 24.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.11 in profit for every $100 of shareholder equity.
ROA
Henderson Land Development Company Limited generates $1.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Henderson Land Development Company Limited produces operating cash flow of $4.98B, showing steady but balanced cash generation.
Free Cash Flow
Henderson Land Development Company Limited produces free cash flow of $3.25B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.67 in free cash annually.
FCF Yield
0012.HK converts 2.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 0012.HK Stacks Against Its Sector Peers
| Metric | 0012.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.32 | 25.74 | Better (Cheaper) |
| ROE | 2.11% | 807.00% | Weak |
| Net Margin | 20.48% | 2690.00% | Weak |
| Debt/Equity | 0.48 | -37.10 (disorted) | Distorted |
| Current Ratio | 3.45 | 39.34 | Strong Liquidity |
| ROA | 1.27% | 276.00% | Weak |
0012.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Henderson Land Development Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.44%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
-45.85%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
70.14%
Industry Style: Income, Inflation Hedge, REIT
High Growth