Paradise Entertainment Limited
Paradise Entertainment Limited Fundamental Analysis
Paradise Entertainment Limited (1180.HK) shows strong financial fundamentals with a PE ratio of 3.46, profit margin of 70.33%, and ROE of 28.23%. The company generates $0.2B in annual revenue with strong year-over-year growth of 71.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 1180.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent1180.HK demonstrates superior asset utilization.
Valuation Score
Excellent1180.HK trades at attractive valuation levels.
Growth Score
Moderate1180.HK shows steady but slowing expansion.
Financial Health Score
Excellent1180.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent1180.HK achieves industry-leading margins.
Key Financial Metrics
Is 1180.HK Expensive or Cheap?
P/E Ratio
1180.HK trades at 3.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1180.HK's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Paradise Entertainment Limited at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 63.57 times EBITDA. This signals the market has high growth expectations.
How Well Does 1180.HK Make Money?
Net Profit Margin
For every $100 in sales, Paradise Entertainment Limited keeps $70.33 as profit after all expenses.
Operating Margin
Core operations generate -5.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.23 in profit for every $100 of shareholder equity.
ROA
Paradise Entertainment Limited generates $19.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Paradise Entertainment Limited generates strong operating cash flow of $526.18M, reflecting robust business health.
Free Cash Flow
Paradise Entertainment Limited generates strong free cash flow of $512.62M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.49 in free cash annually.
FCF Yield
1180.HK converts 1.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
-0.02
vs 25 benchmark
How 1180.HK Stacks Against Its Sector Peers
| Metric | 1180.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.46 | 23.72 | Better (Cheaper) |
| ROE | 28.23% | 1091.00% | Weak |
| Net Margin | 70.33% | -627.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 3.20 | 2.64 | Strong Liquidity |
| ROA | 19.68% | 1053.00% | Weak |
1180.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Paradise Entertainment Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-8.20%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
38890.95%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
441.51%
Industry Style: Cyclical, Growth, Discretionary
High Growth