Majestic Dragon AeroTech Holdings Limited
Majestic Dragon AeroTech Holdings Limited Fundamental Analysis
Majestic Dragon AeroTech Holdings Limited (0918.HK) shows weak financial fundamentals with a PE ratio of 702.82, profit margin of 0.66%, and ROE of 0.44%. The company generates $0.2B in annual revenue with weak year-over-year growth of -51.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -20.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0918.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0918.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak0918.HK trades at a premium to fair value.
Growth Score
Moderate0918.HK shows steady but slowing expansion.
Financial Health Score
Excellent0918.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate0918.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0918.HK Expensive or Cheap?
P/E Ratio
0918.HK trades at 702.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 0918.HK's PEG of 6.68 indicates potential overvaluation.
Price to Book
The market values Majestic Dragon AeroTech Holdings Limited at 3.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 78.62 times EBITDA. This signals the market has high growth expectations.
How Well Does 0918.HK Make Money?
Net Profit Margin
For every $100 in sales, Majestic Dragon AeroTech Holdings Limited keeps $0.66 as profit after all expenses.
Operating Margin
Core operations generate 4.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.44 in profit for every $100 of shareholder equity.
ROA
Majestic Dragon AeroTech Holdings Limited generates $0.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Majestic Dragon AeroTech Holdings Limited produces operating cash flow of $35.24M, showing steady but balanced cash generation.
Free Cash Flow
Majestic Dragon AeroTech Holdings Limited generates strong free cash flow of $29.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
0918.HK converts 3.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
702.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.004
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 0918.HK Stacks Against Its Sector Peers
| Metric | 0918.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 702.82 | 23.78 | Worse (Expensive) |
| ROE | 0.44% | 1098.00% | Weak |
| Net Margin | 0.66% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 2.13 | 2.64 | Strong Liquidity |
| ROA | 0.32% | -8081.00% (disorted) | Weak |
0918.HK outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Majestic Dragon AeroTech Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-91.88%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-132.62%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
131.40%
Industry Style: Cyclical, Growth, Discretionary
High Growth