VSTECS Holdings Limited
VSTECS Holdings Limited Fundamental Analysis
VSTECS Holdings Limited (0856.HK) shows moderate financial fundamentals with a PE ratio of 8.88, profit margin of 1.39%, and ROE of 13.91%. The company generates $100.8B in annual revenue with strong year-over-year growth of 20.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.3/100 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 0856.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0856.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0856.HK trades at attractive valuation levels.
Growth Score
Excellent0856.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent0856.HK maintains a strong and stable balance sheet.
Profitability Score
Weak0856.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0856.HK Expensive or Cheap?
P/E Ratio
0856.HK trades at 8.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0856.HK's PEG of 0.70 indicates potential undervaluation.
Price to Book
The market values VSTECS Holdings Limited at 1.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.20 times EBITDA. This is generally considered low.
How Well Does 0856.HK Make Money?
Net Profit Margin
For every $100 in sales, VSTECS Holdings Limited keeps $1.39 as profit after all expenses.
Operating Margin
Core operations generate 1.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.91 in profit for every $100 of shareholder equity.
ROA
VSTECS Holdings Limited generates $3.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
VSTECS Holdings Limited generates limited operating cash flow of $1.03B, signaling weaker underlying cash strength.
Free Cash Flow
VSTECS Holdings Limited generates weak or negative free cash flow of $891.49M, restricting financial flexibility.
FCF Per Share
Each share generates $0.62 in free cash annually.
FCF Yield
0856.HK converts 6.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How 0856.HK Stacks Against Its Sector Peers
| Metric | 0856.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.88 | 33.94 | Better (Cheaper) |
| ROE | 13.91% | 1002.00% | Weak |
| Net Margin | 1.39% | -48086.00% (disorted) | Weak |
| Debt/Equity | 0.91 | 0.44 | Weak (High Leverage) |
| Current Ratio | 1.31 | 5.74 | Neutral |
| ROA | 3.15% | -288351.00% (disorted) | Weak |
0856.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 VSTECS Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.46%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
32.69%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
107.24%
Industry Style: Growth, Innovation, High Beta
High Growth