H World Group Limited
H World Group Limited Fundamental Analysis
H World Group Limited (1179.HK) shows strong financial fundamentals with a PE ratio of 21.65, profit margin of 20.08%, and ROE of 42.78%. The company generates $25.3B in annual revenue with moderate year-over-year growth of 9.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.4/100 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 1179.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1179.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1179.HK shows balanced valuation metrics.
Growth Score
Moderate1179.HK shows steady but slowing expansion.
Financial Health Score
Weak1179.HK carries high financial risk with limited liquidity.
Profitability Score
Excellent1179.HK achieves industry-leading margins.
Key Financial Metrics
Is 1179.HK Expensive or Cheap?
P/E Ratio
1179.HK trades at 21.65 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 1179.HK's PEG of 9.33 indicates potential overvaluation.
Price to Book
The market values H World Group Limited at 8.56 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.73 times EBITDA. This is generally considered low.
How Well Does 1179.HK Make Money?
Net Profit Margin
For every $100 in sales, H World Group Limited keeps $20.08 as profit after all expenses.
Operating Margin
Core operations generate 26.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $42.78 in profit for every $100 of shareholder equity.
ROA
H World Group Limited generates $7.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
H World Group Limited generates strong operating cash flow of $8.37B, reflecting robust business health.
Free Cash Flow
H World Group Limited generates strong free cash flow of $7.53B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.45 in free cash annually.
FCF Yield
1179.HK converts 6.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.43
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 1179.HK Stacks Against Its Sector Peers
| Metric | 1179.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.65 | 23.78 | Neutral |
| ROE | 42.78% | 1098.00% | Weak |
| Net Margin | 20.08% | -626.00% (disorted) | Strong |
| Debt/Equity | 2.82 | 0.86 | Weak (High Leverage) |
| Current Ratio | 0.91 | 2.64 | Weak Liquidity |
| ROA | 7.81% | -8081.00% (disorted) | Weak |
1179.HK outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews H World Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1942.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1551.43%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
2088.18%
Industry Style: Cyclical, Growth, Discretionary
High Growth