HPC Holdings Limited
HPC Holdings Limited Fundamental Analysis
HPC Holdings Limited (1742.HK) shows moderate financial fundamentals with a PE ratio of 1.49, profit margin of 12.69%, and ROE of 32.61%. The company generates $0.3B in annual revenue with weak year-over-year growth of -41.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1742.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent1742.HK demonstrates superior asset utilization.
Valuation Score
Excellent1742.HK trades at attractive valuation levels.
Growth Score
Weak1742.HK faces weak or negative growth trends.
Financial Health Score
Excellent1742.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1742.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1742.HK Expensive or Cheap?
P/E Ratio
1742.HK trades at 1.49 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1742.HK's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values HPC Holdings Limited at 0.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.77 times EBITDA. This is generally considered low.
How Well Does 1742.HK Make Money?
Net Profit Margin
For every $100 in sales, HPC Holdings Limited keeps $12.69 as profit after all expenses.
Operating Margin
Core operations generate 2.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.61 in profit for every $100 of shareholder equity.
ROA
HPC Holdings Limited generates $13.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HPC Holdings Limited produces operating cash flow of $40.40M, showing steady but balanced cash generation.
Free Cash Flow
HPC Holdings Limited generates strong free cash flow of $38.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
1742.HK converts 71.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 1742.HK Stacks Against Its Sector Peers
| Metric | 1742.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.49 | 25.85 | Better (Cheaper) |
| ROE | 32.61% | 1270.00% | Weak |
| Net Margin | 12.69% | -41768.00% (disorted) | Strong |
| Debt/Equity | 0.12 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.52 | 10.04 | Neutral |
| ROA | 13.88% | -1493983.00% (disorted) | Strong |
1742.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 HPC Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-21.71%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-156.74%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-27.54%
Industry Style: Cyclical, Value, Infrastructure
Declining