Tian Tu Capital Co., Ltd. Fundamental Analysis (HKSE: 1973.HK)
Tian Tu Capital Co., Ltd. Fundamental Analysis (HKSE: 1973.HK)
Tian Tu Capital Co., Ltd. (HKSE: 1973.HK) shows moderate financial fundamentals with a PE ratio of 8.87, profit margin of 18.02%, and ROE of 2.96%. The company generates $0.3B in annual revenue with weak year-over-year growth of 1.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.1/100 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 1973.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1973.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1973.HK trades at attractive valuation levels.
Growth Score
Weak1973.HK faces weak or negative growth trends.
Financial Health Score
Excellent1973.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent1973.HK achieves industry-leading margins.
Key Financial Metrics
Is 1973.HK Expensive or Cheap?
P/E Ratio
1973.HK trades at 8.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1973.HK's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Tian Tu Capital Co., Ltd. at 0.26 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 1973.HK Make Money?
Net Profit Margin
For every $100 in sales, Tian Tu Capital Co., Ltd. keeps $18.02 as profit after all expenses.
Operating Margin
Core operations generate -3.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.96 in profit for every $100 of shareholder equity.
ROA
Tian Tu Capital Co., Ltd. generates $1.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tian Tu Capital Co., Ltd. generates strong operating cash flow of $264.68M, reflecting robust business health.
Free Cash Flow
Tian Tu Capital Co., Ltd. generates strong free cash flow of $264.48M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.62 in free cash annually.
FCF Yield
1973.HK converts 2.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How 1973.HK Stacks Against Its Sector Peers
| Metric | 1973.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.87 | 20.31 | Better (Cheaper) |
| ROE | 2.96% | 638.00% | Weak |
| Net Margin | 18.02% | -595.00% (disorted) | Strong |
| Debt/Equity | 0.08 | -0.19 (disorted) | Distorted |
| Current Ratio | 2.91 | 817.60 | Strong Liquidity |
| ROA | 1.54% | 59.00% | Weak |
1973.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tian Tu Capital Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-96.87%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-86.52%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-106.63%
Industry Style: Value, Dividend, Cyclical
Declining