Shenzhen Investment Holdings Bay Area Development Company Limited
Shenzhen Investment Holdings Bay Area Development Company Limited Fundamental Analysis
Shenzhen Investment Holdings Bay Area Development Company Limited (0737.HK) shows moderate financial fundamentals with a PE ratio of 11.21, profit margin of 59.52%, and ROE of 10.08%. The company generates $0.8B in annual revenue with weak year-over-year growth of -6.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0737.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0737.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0737.HK trades at attractive valuation levels.
Growth Score
Weak0737.HK faces weak or negative growth trends.
Financial Health Score
Weak0737.HK carries high financial risk with limited liquidity.
Profitability Score
Moderate0737.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0737.HK Expensive or Cheap?
P/E Ratio
0737.HK trades at 11.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0737.HK's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Shenzhen Investment Holdings Bay Area Development Company Limited at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.30 times EBITDA. This is generally considered low.
How Well Does 0737.HK Make Money?
Net Profit Margin
For every $100 in sales, Shenzhen Investment Holdings Bay Area Development Company Limited keeps $59.52 as profit after all expenses.
Operating Margin
Core operations generate 30.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.08 in profit for every $100 of shareholder equity.
ROA
Shenzhen Investment Holdings Bay Area Development Company Limited generates $3.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shenzhen Investment Holdings Bay Area Development Company Limited generates strong operating cash flow of $517.07M, reflecting robust business health.
Free Cash Flow
Shenzhen Investment Holdings Bay Area Development Company Limited generates strong free cash flow of $492.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
0737.HK converts 9.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 0737.HK Stacks Against Its Sector Peers
| Metric | 0737.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.21 | 25.85 | Better (Cheaper) |
| ROE | 10.08% | 1270.00% | Weak |
| Net Margin | 59.52% | -41768.00% (disorted) | Strong |
| Debt/Equity | 1.04 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.49 | 10.04 | Weak Liquidity |
| ROA | 3.49% | -1493983.00% (disorted) | Weak |
0737.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shenzhen Investment Holdings Bay Area 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
0.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-24.69%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
1572.53%
Industry Style: Cyclical, Value, Infrastructure
High Growth