Dream International Limited
Dream International Limited Fundamental Analysis
Dream International Limited (1126.HK) shows moderate financial fundamentals with a PE ratio of 6.99, profit margin of 13.37%, and ROE of 19.19%. The company generates $5.7B in annual revenue with weak year-over-year growth of 1.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.3/100 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 1126.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent1126.HK demonstrates superior asset utilization.
Valuation Score
Excellent1126.HK trades at attractive valuation levels.
Growth Score
Weak1126.HK faces weak or negative growth trends.
Financial Health Score
Excellent1126.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1126.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1126.HK Expensive or Cheap?
P/E Ratio
1126.HK trades at 6.99 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1126.HK's PEG of 1.91 indicates fair valuation.
Price to Book
The market values Dream International Limited at 1.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.12 times EBITDA. This is generally considered low.
How Well Does 1126.HK Make Money?
Net Profit Margin
For every $100 in sales, Dream International Limited keeps $13.37 as profit after all expenses.
Operating Margin
Core operations generate 17.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.19 in profit for every $100 of shareholder equity.
ROA
Dream International Limited generates $14.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dream International Limited produces operating cash flow of $896.93M, showing steady but balanced cash generation.
Free Cash Flow
Dream International Limited generates strong free cash flow of $683.13M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.01 in free cash annually.
FCF Yield
1126.HK converts 12.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How 1126.HK Stacks Against Its Sector Peers
| Metric | 1126.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.99 | 24.06 | Better (Cheaper) |
| ROE | 19.19% | 1169.00% | Weak |
| Net Margin | 13.37% | 740.00% | Weak |
| Debt/Equity | 0.03 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 3.37 | 2.54 | Strong Liquidity |
| ROA | 14.78% | -8536.00% (disorted) | Strong |
1126.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dream International Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.16%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
54.67%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
46.61%
Industry Style: Cyclical, Growth, Discretionary
High Growth