New World Department Store China Limited
New World Department Store China Limited Fundamental Analysis
New World Department Store China Limited (0825.HK) shows weak financial fundamentals with a PE ratio of 14.84, profit margin of 3.39%, and ROE of 1.06%. The company generates $1.1B in annual revenue with weak year-over-year growth of -12.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 2.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0825.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0825.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0825.HK trades at attractive valuation levels.
Growth Score
Moderate0825.HK shows steady but slowing expansion.
Financial Health Score
Weak0825.HK carries high financial risk with limited liquidity.
Profitability Score
Moderate0825.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0825.HK Expensive or Cheap?
P/E Ratio
0825.HK trades at 14.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0825.HK's PEG of 0.30 indicates potential undervaluation.
Price to Book
The market values New World Department Store China Limited at 0.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.67 times EBITDA. This is generally considered low.
How Well Does 0825.HK Make Money?
Net Profit Margin
For every $100 in sales, New World Department Store China Limited keeps $3.39 as profit after all expenses.
Operating Margin
Core operations generate -8.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.06 in profit for every $100 of shareholder equity.
ROA
New World Department Store China Limited generates $0.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
New World Department Store China Limited produces operating cash flow of $219.58M, showing steady but balanced cash generation.
Free Cash Flow
New World Department Store China Limited generates strong free cash flow of $210.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
0825.HK converts 37.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How 0825.HK Stacks Against Its Sector Peers
| Metric | 0825.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.84 | 24.43 | Better (Cheaper) |
| ROE | 1.06% | 1152.00% | Weak |
| Net Margin | 3.39% | -398.00% (disorted) | Weak |
| Debt/Equity | 1.01 | 0.78 | Weak (High Leverage) |
| Current Ratio | 0.30 | 2.60 | Weak Liquidity |
| ROA | 0.38% | -7985.00% (disorted) | Weak |
0825.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 New World Department Store China Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-47.02%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
105.23%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
100.21%
Industry Style: Cyclical, Growth, Discretionary
High Growth