The Hongkong and Shanghai Hotels, Limited
The Hongkong and Shanghai Hotels, Limited Fundamental Analysis
The Hongkong and Shanghai Hotels, Limited (0045.HK) shows weak financial fundamentals with a PE ratio of 31.17, profit margin of 3.95%, and ROE of 0.88%. The company generates $8.0B in annual revenue with weak year-over-year growth of -22.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -0.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0045.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0045.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate0045.HK shows balanced valuation metrics.
Growth Score
Weak0045.HK faces weak or negative growth trends.
Financial Health Score
Moderate0045.HK shows balanced financial health with some risks.
Profitability Score
Moderate0045.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0045.HK Expensive or Cheap?
P/E Ratio
0045.HK trades at 31.17 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 0045.HK's PEG of 0.22 indicates potential undervaluation.
Price to Book
The market values The Hongkong and Shanghai Hotels, Limited at 0.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.52 times EBITDA. This is generally considered low.
How Well Does 0045.HK Make Money?
Net Profit Margin
For every $100 in sales, The Hongkong and Shanghai Hotels, Limited keeps $3.95 as profit after all expenses.
Operating Margin
Core operations generate 12.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.88 in profit for every $100 of shareholder equity.
ROA
The Hongkong and Shanghai Hotels, Limited generates $0.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Hongkong and Shanghai Hotels, Limited produces operating cash flow of $1.62B, showing steady but balanced cash generation.
Free Cash Flow
The Hongkong and Shanghai Hotels, Limited generates strong free cash flow of $1.05B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.63 in free cash annually.
FCF Yield
0045.HK converts 10.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 0045.HK Stacks Against Its Sector Peers
| Metric | 0045.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.17 | 23.78 | Worse (Expensive) |
| ROE | 0.88% | 1098.00% | Weak |
| Net Margin | 3.95% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 0.39 | 2.64 | Weak Liquidity |
| ROA | 0.57% | -8081.00% (disorted) | Weak |
0045.HK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Hongkong and Shanghai Hotels, Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
189.98%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
116.25%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
227.08%
Industry Style: Cyclical, Growth, Discretionary
High Growth