TravelSky Technology Limited
TravelSky Technology Limited Fundamental Analysis
TravelSky Technology Limited (0696.HK) shows moderate financial fundamentals with a PE ratio of 11.24, profit margin of 27.03%, and ROE of 9.88%. The company generates $8.6B in annual revenue with weak year-over-year growth of -4.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.6/100 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 0696.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0696.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0696.HK trades at attractive valuation levels.
Growth Score
Weak0696.HK faces weak or negative growth trends.
Financial Health Score
Excellent0696.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate0696.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0696.HK Expensive or Cheap?
P/E Ratio
0696.HK trades at 11.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0696.HK's PEG of 1.56 indicates fair valuation.
Price to Book
The market values TravelSky Technology Limited at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.48 times EBITDA. This signals the market has high growth expectations.
How Well Does 0696.HK Make Money?
Net Profit Margin
For every $100 in sales, TravelSky Technology Limited keeps $27.03 as profit after all expenses.
Operating Margin
Core operations generate 28.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.88 in profit for every $100 of shareholder equity.
ROA
TravelSky Technology Limited generates $7.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TravelSky Technology Limited generates strong operating cash flow of $2.55B, reflecting robust business health.
Free Cash Flow
TravelSky Technology Limited generates strong free cash flow of $1.80B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.61 in free cash annually.
FCF Yield
0696.HK converts 6.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 0696.HK Stacks Against Its Sector Peers
| Metric | 0696.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.24 | 33.94 | Better (Cheaper) |
| ROE | 9.88% | 1002.00% | Weak |
| Net Margin | 27.03% | -48794.00% (disorted) | Strong |
| Debt/Equity | 0.09 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 3.05 | 5.74 | Strong Liquidity |
| ROA | 7.01% | -288341.00% (disorted) | Weak |
0696.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TravelSky Technology Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.93%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
528.71%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-100.00%
Industry Style: Growth, Innovation, High Beta
Declining