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Future Machine Limited

1401.HKHKSE
Technology
Consumer Electronics
HK$0.78
HK$-0.01(-1.27%)
Hong Kong Market opens in 11h 46m

Future Machine Limited Fundamental Analysis

Future Machine Limited (1401.HK) shows weak financial fundamentals with a PE ratio of 25.69, profit margin of 0.95%, and ROE of 8.93%. The company generates $4.4B in annual revenue with N/A year-over-year growth of N/A.

Key Strengths

Cash Position193.05%
PEG Ratio0.32

Areas of Concern

ROE8.93%
Operating Margin0.60%
We analyze 1401.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 18.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.

Fundamental Health Score

F
18.8/100

We analyze 1401.HK's fundamental strength across five key dimensions:

Efficiency Score

Weak

1401.HK struggles to generate sufficient returns from assets.

ROA > 10%
1.00%

Valuation Score

Moderate

1401.HK shows balanced valuation metrics.

PE < 25
25.69
PEG Ratio < 2
0.32

Growth Score

Moderate

1401.HK shows steady but slowing expansion.

Revenue Growth > 5%
N/A
EPS Growth > 10%
N/A

Financial Health Score

Moderate

1401.HK shows balanced financial health with some risks.

Debt/Equity < 1
4.82
Current Ratio > 1
1.13

Profitability Score

Weak

1401.HK struggles to sustain strong margins.

ROE > 15%
8.93%
Net Margin ≥ 15%
0.95%
Positive Free Cash Flow
No

Key Financial Metrics

Is 1401.HK Expensive or Cheap?

P/E Ratio

1401.HK trades at 25.69 times earnings. This indicates a fair valuation.

25.69

PEG Ratio

When adjusting for growth, 1401.HK's PEG of 0.32 indicates potential undervaluation.

0.32

Price to Book

The market values Future Machine Limited at 1.96 times its book value. This may indicate undervaluation.

1.96

EV/EBITDA

Enterprise value stands at 15.82 times EBITDA. This signals the market has high growth expectations.

15.82

How Well Does 1401.HK Make Money?

Net Profit Margin

For every $100 in sales, Future Machine Limited keeps $0.95 as profit after all expenses.

0.95%

Operating Margin

Core operations generate 0.60 in profit for every $100 in revenue, before interest and taxes.

0.60%

ROE

Management delivers $8.93 in profit for every $100 of shareholder equity.

8.93%

ROA

Future Machine Limited generates $1.00 in profit for every $100 in assets, demonstrating efficient asset deployment.

1.00%

Following the Money - Real Cash Generation

Operating Cash Flow

Future Machine Limited generates limited operating cash flow of $-236.77M, signaling weaker underlying cash strength.

$-236.77M

Free Cash Flow

Future Machine Limited generates weak or negative free cash flow of $-254.07M, restricting financial flexibility.

$-254.07M

FCF Per Share

Each share generates $-0.17 in free cash annually.

$-0.17

FCF Yield

1401.HK converts -23.21% of its market value into free cash.

-23.21%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

25.69

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

0.32

vs 25 benchmark

P/B Ratio

Price to book value ratio

1.96

vs 25 benchmark

P/S Ratio

Price to sales ratio

0.25

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

4.82

vs 25 benchmark

Current Ratio

Current assets to current liabilities

1.13

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.09

vs 25 benchmark

ROA

Return on assets percentage

0.01

vs 25 benchmark

ROCE

Return on capital employed

0.04

vs 25 benchmark

How 1401.HK Stacks Against Its Sector Peers

Metric1401.HK ValueSector AveragePerformance
P/E Ratio25.6935.60 Better (Cheaper)
ROE8.93%1040.00% Weak
Net Margin0.95%5855262042.00% Weak
Debt/Equity4.820.57 Weak (High Leverage)
Current Ratio1.135.05 Neutral
ROA1.00%-291580.00% (disorted) Weak

1401.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Future Machine 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: Growth, Innovation, High Beta

EPS CAGR

N/A

Industry Style: Growth, Innovation, High Beta

FCF CAGR

N/A

Industry Style: Growth, Innovation, High Beta

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