L'Occitane International S.A.
L'Occitane International S.A. Fundamental Analysis
L'Occitane International S.A. (0973.HK) shows weak financial fundamentals with a PE ratio of 58.83, profit margin of 3.69%, and ROE of 9.41%. The company generates $2.5B 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 33.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0973.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0973.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak0973.HK trades at a premium to fair value.
Growth Score
Moderate0973.HK shows steady but slowing expansion.
Financial Health Score
Weak0973.HK carries high financial risk with limited liquidity.
Profitability Score
Weak0973.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0973.HK Expensive or Cheap?
P/E Ratio
0973.HK trades at 58.83 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 0973.HK's PEG of 5.31 indicates potential overvaluation.
Price to Book
The market values L'Occitane International S.A. at 6.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.15 times EBITDA. This signals the market has high growth expectations.
How Well Does 0973.HK Make Money?
Net Profit Margin
For every $100 in sales, L'Occitane International S.A. keeps $3.69 as profit after all expenses.
Operating Margin
Core operations generate 9.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.41 in profit for every $100 of shareholder equity.
ROA
L'Occitane International S.A. generates $3.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
L'Occitane International S.A. produces operating cash flow of $260.54M, showing steady but balanced cash generation.
Free Cash Flow
L'Occitane International S.A. produces free cash flow of $196.29M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
0973.HK converts 3.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
58.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How 0973.HK Stacks Against Its Sector Peers
| Metric | 0973.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 58.83 | 22.36 | Worse (Expensive) |
| ROE | 9.41% | 1238.00% | Weak |
| Net Margin | 3.69% | -5096.00% (disorted) | Weak |
| Debt/Equity | 1.02 | 1.23 | Neutral |
| Current Ratio | 0.92 | 2.47 | Weak Liquidity |
| ROA | 3.01% | -191998.00% (disorted) | Weak |
0973.HK outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews L'Occitane International S.A.'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: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility