Kinetic Development Group Limited Fundamental Analysis
Kinetic Development Group Limited (1277.HK) shows moderate financial fundamentals with a PE ratio of 12.76, profit margin of 16.92%, and ROE of 10.96%. The company generates $5.3B 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 59.2/100 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 1277.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1277.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1277.HK trades at attractive valuation levels.
Growth Score
Moderate1277.HK shows steady but slowing expansion.
Financial Health Score
Moderate1277.HK shows balanced financial health with some risks.
Profitability Score
Moderate1277.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1277.HK Expensive or Cheap?
P/E Ratio
1277.HK trades at 12.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1277.HK's PEG of -0.26 indicates potential undervaluation.
Price to Book
The market values Kinetic Development Group Limited at 1.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.15 times EBITDA. This is generally considered low.
How Well Does 1277.HK Make Money?
Net Profit Margin
For every $100 in sales, Kinetic Development Group Limited keeps $16.92 as profit after all expenses.
Operating Margin
Core operations generate 25.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.96 in profit for every $100 of shareholder equity.
ROA
Kinetic Development Group Limited generates $6.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kinetic Development Group Limited produces operating cash flow of $1.12B, showing steady but balanced cash generation.
Free Cash Flow
Kinetic Development Group Limited generates strong free cash flow of $803.75M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
1277.HK converts 6.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 1277.HK Stacks Against Its Sector Peers
| Metric | 1277.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.76 | 24.14 | Better (Cheaper) |
| ROE | 10.96% | 1149.00% | Weak |
| Net Margin | 16.92% | -27994.00% (disorted) | Strong |
| Debt/Equity | 0.12 | -1.60 (disorted) | Distorted |
| Current Ratio | 0.94 | 3.24 | Weak Liquidity |
| ROA | 6.58% | 423.00% | Weak |
1277.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kinetic Development Group Limited'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: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity