Tradelink Electronic Commerce Limited
Tradelink Electronic Commerce Limited Fundamental Analysis
Tradelink Electronic Commerce Limited (0536.HK) shows strong financial fundamentals with a PE ratio of 10.40, profit margin of 33.25%, and ROE of 22.33%. The company generates $0.3B in annual revenue with weak year-over-year growth of -7.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 0536.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent0536.HK demonstrates superior asset utilization.
Valuation Score
Excellent0536.HK trades at attractive valuation levels.
Growth Score
Weak0536.HK faces weak or negative growth trends.
Financial Health Score
Excellent0536.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent0536.HK achieves industry-leading margins.
Key Financial Metrics
Is 0536.HK Expensive or Cheap?
P/E Ratio
0536.HK trades at 10.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0536.HK's PEG of 1.04 indicates fair valuation.
Price to Book
The market values Tradelink Electronic Commerce Limited at 2.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.65 times EBITDA. This signals the market has high growth expectations.
How Well Does 0536.HK Make Money?
Net Profit Margin
For every $100 in sales, Tradelink Electronic Commerce Limited keeps $33.25 as profit after all expenses.
Operating Margin
Core operations generate 29.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.33 in profit for every $100 of shareholder equity.
ROA
Tradelink Electronic Commerce Limited generates $15.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tradelink Electronic Commerce Limited generates strong operating cash flow of $84.53M, reflecting robust business health.
Free Cash Flow
Tradelink Electronic Commerce Limited generates strong free cash flow of $75.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
0536.HK converts 8.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 0536.HK Stacks Against Its Sector Peers
| Metric | 0536.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.40 | 33.61 | Better (Cheaper) |
| ROE | 22.33% | 1020.00% | Weak |
| Net Margin | 33.25% | -56528.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 3.26 | 5.65 | Strong Liquidity |
| ROA | 15.60% | -291484.00% (disorted) | Strong |
0536.HK outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tradelink Electronic Commerce Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-26.66%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-0.43%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-19.66%
Industry Style: Growth, Innovation, High Beta
Declining