Natural Food International Holding Limited Fundamental Analysis (HKSE: 1837.HK)
Natural Food International Holding Limited Fundamental Analysis (HKSE: 1837.HK)
Natural Food International Holding Limited (HKSE: 1837.HK) shows strong financial fundamentals with a PE ratio of 8.35, profit margin of 11.08%, and ROE of 18.49%. The company generates $2.9B in annual revenue with strong year-over-year growth of 22.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 1837.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent1837.HK demonstrates superior asset utilization.
Valuation Score
Excellent1837.HK trades at attractive valuation levels.
Growth Score
Excellent1837.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent1837.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1837.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1837.HK Expensive or Cheap?
P/E Ratio
1837.HK trades at 8.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1837.HK's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Natural Food International Holding Limited at 1.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.27 times EBITDA. This is generally considered low.
How Well Does 1837.HK Make Money?
Net Profit Margin
For every $100 in sales, Natural Food International Holding Limited keeps $11.08 as profit after all expenses.
Operating Margin
Core operations generate 12.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.49 in profit for every $100 of shareholder equity.
ROA
Natural Food International Holding Limited generates $15.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Natural Food International Holding Limited generates limited operating cash flow of $87.51M, signaling weaker underlying cash strength.
Free Cash Flow
Natural Food International Holding Limited generates weak or negative free cash flow of $67.30M, restricting financial flexibility.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
1837.HK converts 2.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How 1837.HK Stacks Against Its Sector Peers
| Metric | 1837.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.35 | 20.69 | Better (Cheaper) |
| ROE | 18.49% | 666.00% | Weak |
| Net Margin | 11.08% | -2392.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 5.63 | 2.26 | Strong Liquidity |
| ROA | 15.62% | 314.00% | Weak |
1837.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 Natural Food International Holding Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
76.58%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
1949.04%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
173.03%
Industry Style: Defensive, Dividend, Low Volatility
High Growth