Be Friends Holding Limited
Be Friends Holding Limited Fundamental Analysis
Be Friends Holding Limited (1450.HK) shows moderate financial fundamentals with a PE ratio of 10.47, profit margin of 6.24%, and ROE of 17.92%. The company generates $1.5B in annual revenue with strong year-over-year growth of 16.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.9/100 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 1450.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1450.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1450.HK trades at attractive valuation levels.
Growth Score
Moderate1450.HK shows steady but slowing expansion.
Financial Health Score
Excellent1450.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1450.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1450.HK Expensive or Cheap?
P/E Ratio
1450.HK trades at 10.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1450.HK's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values Be Friends Holding Limited at 1.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.83 times EBITDA. This is generally considered low.
How Well Does 1450.HK Make Money?
Net Profit Margin
For every $100 in sales, Be Friends Holding Limited keeps $6.24 as profit after all expenses.
Operating Margin
Core operations generate 7.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.92 in profit for every $100 of shareholder equity.
ROA
Be Friends Holding Limited generates $9.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Be Friends Holding Limited generates limited operating cash flow of $90.66M, signaling weaker underlying cash strength.
Free Cash Flow
Be Friends Holding Limited produces free cash flow of $80.73M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
1450.HK converts 8.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How 1450.HK Stacks Against Its Sector Peers
| Metric | 1450.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.47 | 33.61 | Better (Cheaper) |
| ROE | 17.92% | 1020.00% | Weak |
| Net Margin | 6.24% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 5.65 | Neutral |
| ROA | 9.71% | -291484.00% (disorted) | Weak |
1450.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Be Friends Holding Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
390.86%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
172.66%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-725.02%
Industry Style: Growth, Innovation, High Beta
Declining