NetDragon Websoft Holdings Limited Fundamental Analysis (HKSE: 0777.HK)
NetDragon Websoft Holdings Limited Fundamental Analysis (HKSE: 0777.HK)
NetDragon Websoft Holdings Limited (HKSE: 0777.HK) shows weak financial fundamentals with a PE ratio of 23.31, profit margin of 3.37%, and ROE of 2.73%. The company generates $4.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0777.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0777.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0777.HK trades at attractive valuation levels.
Growth Score
Moderate0777.HK shows steady but slowing expansion.
Financial Health Score
Excellent0777.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate0777.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0777.HK Expensive or Cheap?
P/E Ratio
0777.HK trades at 23.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 0777.HK's PEG of -0.14 indicates potential undervaluation.
Price to Book
The market values NetDragon Websoft Holdings Limited at 0.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.85 times EBITDA. This is generally considered low.
How Well Does 0777.HK Make Money?
Net Profit Margin
For every $100 in sales, NetDragon Websoft Holdings Limited keeps $3.37 as profit after all expenses.
Operating Margin
Core operations generate 6.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.73 in profit for every $100 of shareholder equity.
ROA
NetDragon Websoft Holdings Limited generates $1.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NetDragon Websoft Holdings Limited generates limited operating cash flow of $396.32M, signaling weaker underlying cash strength.
Free Cash Flow
NetDragon Websoft Holdings Limited produces free cash flow of $251.19M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
0777.HK converts 7.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 0777.HK Stacks Against Its Sector Peers
| Metric | 0777.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.31 | 35.33 | Better (Cheaper) |
| ROE | 2.73% | 725.00% | Weak |
| Net Margin | 3.37% | -130836.00% (disorted) | Weak |
| Debt/Equity | 0.52 | 0.42 | Weak (High Leverage) |
| Current Ratio | 1.25 | 5.92 | Neutral |
| ROA | 1.52% | 259.00% | Weak |
0777.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NetDragon Websoft Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta