LH Group Limited
LH Group Limited Fundamental Analysis
LH Group Limited (1978.HK) shows weak financial fundamentals with a PE ratio of 148.45, profit margin of 0.16%, and ROE of 0.73%. The company generates $1.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 17.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1978.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1978.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1978.HK shows balanced valuation metrics.
Growth Score
Weak1978.HK faces weak or negative growth trends.
Financial Health Score
Weak1978.HK carries high financial risk with limited liquidity.
Profitability Score
Moderate1978.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1978.HK Expensive or Cheap?
P/E Ratio
1978.HK trades at 148.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 1978.HK's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values LH Group Limited at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.02 times EBITDA. This is generally considered low.
How Well Does 1978.HK Make Money?
Net Profit Margin
For every $100 in sales, LH Group Limited keeps $0.16 as profit after all expenses.
Operating Margin
Core operations generate 28.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.73 in profit for every $100 of shareholder equity.
ROA
LH Group Limited generates $0.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LH Group Limited produces operating cash flow of $121.04M, showing steady but balanced cash generation.
Free Cash Flow
LH Group Limited produces free cash flow of $108.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.14 in free cash annually.
FCF Yield
1978.HK converts 42.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
148.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.007
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.71
vs 25 benchmark
How 1978.HK Stacks Against Its Sector Peers
| Metric | 1978.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 148.45 | 24.20 | Worse (Expensive) |
| ROE | 0.73% | 1190.00% | Weak |
| Net Margin | 0.16% | 2642.00% | Weak |
| Debt/Equity | 1.14 | 0.70 | Weak (High Leverage) |
| Current Ratio | 0.82 | 2.84 | Weak Liquidity |
| ROA | 0.24% | -8310.00% (disorted) | Weak |
1978.HK outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LH Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary