Stella International Holdings Limited Fundamental Analysis (HKSE: 1836.HK)
Stella International Holdings Limited Fundamental Analysis (HKSE: 1836.HK)
Stella International Holdings Limited (HKSE: 1836.HK) shows moderate financial fundamentals with a PE ratio of 10.03, profit margin of 7.80%, and ROE of 11.35%. The company generates $1.6B in annual revenue with weak year-over-year growth of 1.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1836.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1836.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1836.HK shows balanced valuation metrics.
Growth Score
Weak1836.HK faces weak or negative growth trends.
Financial Health Score
Excellent1836.HK maintains a strong and stable balance sheet.
Profitability Score
Weak1836.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1836.HK Expensive or Cheap?
P/E Ratio
1836.HK trades at 10.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1836.HK's PEG of 11.02 indicates potential overvaluation.
Price to Book
The market values Stella International Holdings Limited at 1.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.88 times EBITDA. This is generally considered low.
How Well Does 1836.HK Make Money?
Net Profit Margin
For every $100 in sales, Stella International Holdings Limited keeps $7.80 as profit after all expenses.
Operating Margin
Core operations generate 7.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.35 in profit for every $100 of shareholder equity.
ROA
Stella International Holdings Limited generates $8.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stella International Holdings Limited generates limited operating cash flow of $155.44M, signaling weaker underlying cash strength.
Free Cash Flow
Stella International Holdings Limited generates weak or negative free cash flow of $30.76M, restricting financial flexibility.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
1836.HK converts 2.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 1836.HK Stacks Against Its Sector Peers
| Metric | 1836.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.03 | 24.36 | Better (Cheaper) |
| ROE | 11.35% | 1015.00% | Weak |
| Net Margin | 7.80% | -2983.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 2.88 | 2.30 | Strong Liquidity |
| ROA | 8.85% | 343.00% | Weak |
1836.HK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stella International Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.57%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
7575.81%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
13.99%
Industry Style: Cyclical, Growth, Discretionary
High Growth