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Carpenter Tan Holdings Limited

0837.HKHKSE
Consumer Cyclical
Furnishings, Fixtures & Appliances
HK$7.51
HK$-0.01(-0.13%)
Hong Kong Market opens in 43h 31m

Carpenter Tan Holdings Limited Fundamental Analysis

Carpenter Tan Holdings Limited (0837.HK) shows moderate financial fundamentals with a PE ratio of 9.65, profit margin of 30.70%, and ROE of 18.05%. The company generates $0.6B in annual revenue with N/A year-over-year growth of N/A.

Key Strengths

Operating Margin37.58%
PEG Ratio-1.36
Current Ratio4.55

Areas of Concern

No major concerns flagged.
We analyze 0837.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 79.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.

Fundamental Health Score

B
79.2/100

We analyze 0837.HK's fundamental strength across five key dimensions:

Efficiency Score

Excellent

0837.HK demonstrates superior asset utilization.

ROA > 10%
15.18%

Valuation Score

Excellent

0837.HK trades at attractive valuation levels.

PE < 25
9.65
PEG Ratio < 2
-1.36

Growth Score

Moderate

0837.HK shows steady but slowing expansion.

Revenue Growth > 5%
N/A
EPS Growth > 10%
N/A

Financial Health Score

Excellent

0837.HK maintains a strong and stable balance sheet.

Debt/Equity < 1
0.02
Current Ratio > 1
4.55

Profitability Score

Excellent

0837.HK achieves industry-leading margins.

ROE > 15%
18.05%
Net Margin ≥ 15%
30.70%
Positive Free Cash Flow
Yes

Key Financial Metrics

Is 0837.HK Expensive or Cheap?

P/E Ratio

0837.HK trades at 9.65 times earnings. This suggests potential undervaluation.

9.65

PEG Ratio

When adjusting for growth, 0837.HK's PEG of -1.36 indicates potential undervaluation.

-1.36

Price to Book

The market values Carpenter Tan Holdings Limited at 1.69 times its book value. This may indicate undervaluation.

1.69

EV/EBITDA

Enterprise value stands at 7.91 times EBITDA. This is generally considered low.

7.91

How Well Does 0837.HK Make Money?

Net Profit Margin

For every $100 in sales, Carpenter Tan Holdings Limited keeps $30.70 as profit after all expenses.

30.70%

Operating Margin

Core operations generate 37.58 in profit for every $100 in revenue, before interest and taxes.

37.58%

ROE

Management delivers $18.05 in profit for every $100 of shareholder equity.

18.05%

ROA

Carpenter Tan Holdings Limited generates $15.18 in profit for every $100 in assets, demonstrating efficient asset deployment.

15.18%

Following the Money - Real Cash Generation

Operating Cash Flow

Carpenter Tan Holdings Limited produces operating cash flow of $92.85M, showing steady but balanced cash generation.

$92.85M

Free Cash Flow

Carpenter Tan Holdings Limited generates strong free cash flow of $82.09M, providing ample flexibility for dividends, buybacks, or growth.

$82.09M

FCF Per Share

Each share generates $0.33 in free cash annually.

$0.33

FCF Yield

0837.HK converts 5.01% of its market value into free cash.

5.01%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

9.65

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

-1.36

vs 25 benchmark

P/B Ratio

Price to book value ratio

1.69

vs 25 benchmark

P/S Ratio

Price to sales ratio

2.96

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.02

vs 25 benchmark

Current Ratio

Current assets to current liabilities

4.55

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.18

vs 25 benchmark

ROA

Return on assets percentage

0.15

vs 25 benchmark

ROCE

Return on capital employed

0.21

vs 25 benchmark

How 0837.HK Stacks Against Its Sector Peers

Metric0837.HK ValueSector AveragePerformance
P/E Ratio9.6523.78 Better (Cheaper)
ROE18.05%1098.00% Weak
Net Margin30.70%-626.00% (disorted) Strong
Debt/Equity0.020.86 Strong (Low Leverage)
Current Ratio4.552.64 Strong Liquidity
ROA15.18%-8081.00% (disorted) Strong

0837.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 Carpenter Tan 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: Cyclical, Growth, Discretionary

EPS CAGR

N/A

Industry Style: Cyclical, Growth, Discretionary

FCF CAGR

N/A

Industry Style: Cyclical, Growth, Discretionary

Fundamental Analysis FAQ