FIH Mobile Limited Fundamental Analysis (HKSE: 2038.HK)
FIH Mobile Limited (HKSE: 2038.HK) shows moderate financial fundamentals with a PE ratio of 29.88, profit margin of 0.81%, and ROE of 3.67%. The company generates $6.8B in annual revenue with strong year-over-year growth of 16.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2038.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2038.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2038.HK shows balanced valuation metrics.
Growth Score
Moderate2038.HK shows steady but slowing expansion.
Financial Health Score
Excellent2038.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2038.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2038.HK Expensive or Cheap?
P/E Ratio
2038.HK trades at 29.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2038.HK's PEG of 1.04 indicates fair valuation.
Price to Book
The market values FIH Mobile Limited at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.95 times EBITDA. This signals the market has high growth expectations.
How Well Does 2038.HK Make Money?
Net Profit Margin
For every $100 in sales, FIH Mobile Limited keeps $0.81 as profit after all expenses.
Operating Margin
Core operations generate 0.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.67 in profit for every $100 of shareholder equity.
ROA
FIH Mobile Limited generates $1.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FIH Mobile Limited generates limited operating cash flow of $469.65M, signaling weaker underlying cash strength.
Free Cash Flow
FIH Mobile Limited produces free cash flow of $325.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.42 in free cash annually.
FCF Yield
2038.HK converts 19.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 2038.HK Stacks Against Its Sector Peers
| Metric | 2038.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.88 | 34.93 | Better (Cheaper) |
| ROE | 3.67% | 750.00% | Weak |
| Net Margin | 0.81% | -3058.00% (disorted) | Weak |
| Debt/Equity | 0.10 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 1.24 | 6.21 | Neutral |
| ROA | 1.13% | 307.00% | Weak |
2038.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FIH Mobile Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-22.84%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
131.41%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
225.57%
Industry Style: Growth, Innovation, High Beta
High Growth