Beng Soon Machinery Holdings Limited
Beng Soon Machinery Holdings Limited Fundamental Analysis
Beng Soon Machinery Holdings Limited (1987.HK) shows weak financial fundamentals with a PE ratio of 33.25, profit margin of 2.86%, and ROE of 2.59%. The company generates $0.0B in annual revenue with strong year-over-year growth of 14.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1987.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1987.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1987.HK shows balanced valuation metrics.
Growth Score
Excellent1987.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent1987.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1987.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1987.HK Expensive or Cheap?
P/E Ratio
1987.HK trades at 33.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 1987.HK's PEG of 1.16 indicates fair valuation.
Price to Book
The market values Beng Soon Machinery Holdings Limited at 0.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.39 times EBITDA. This is generally considered low.
How Well Does 1987.HK Make Money?
Net Profit Margin
For every $100 in sales, Beng Soon Machinery Holdings Limited keeps $2.86 as profit after all expenses.
Operating Margin
Core operations generate 5.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.59 in profit for every $100 of shareholder equity.
ROA
Beng Soon Machinery Holdings Limited generates $1.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Beng Soon Machinery Holdings Limited generates limited operating cash flow of $1.54M, signaling weaker underlying cash strength.
Free Cash Flow
Beng Soon Machinery Holdings Limited generates weak or negative free cash flow of $689.23K, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
1987.HK converts 2.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.29
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
0.04
vs 25 benchmark
How 1987.HK Stacks Against Its Sector Peers
| Metric | 1987.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.25 | 25.85 | Worse (Expensive) |
| ROE | 2.59% | 1270.00% | Weak |
| Net Margin | 2.86% | -41768.00% (disorted) | Weak |
| Debt/Equity | 0.29 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 5.29 | 10.04 | Strong Liquidity |
| ROA | 1.85% | -1493983.00% (disorted) | Weak |
1987.HK outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Beng Soon Machinery Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-22.60%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-91.53%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-81.84%
Industry Style: Cyclical, Value, Infrastructure
Declining