Kato (Hong Kong) Holdings Limited
Kato (Hong Kong) Holdings Limited Fundamental Analysis
Kato (Hong Kong) Holdings Limited (2189.HK) shows moderate financial fundamentals with a PE ratio of 20.48, profit margin of 6.75%, and ROE of 5.27%. The company generates $0.3B in annual revenue with strong year-over-year growth of 16.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2189.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2189.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2189.HK shows balanced valuation metrics.
Growth Score
Moderate2189.HK shows steady but slowing expansion.
Financial Health Score
Excellent2189.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2189.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2189.HK Expensive or Cheap?
P/E Ratio
2189.HK trades at 20.48 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2189.HK's PEG of 3.45 indicates potential overvaluation.
Price to Book
The market values Kato (Hong Kong) Holdings Limited at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.28 times EBITDA. This is generally considered low.
How Well Does 2189.HK Make Money?
Net Profit Margin
For every $100 in sales, Kato (Hong Kong) Holdings Limited keeps $6.75 as profit after all expenses.
Operating Margin
Core operations generate 20.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.27 in profit for every $100 of shareholder equity.
ROA
Kato (Hong Kong) Holdings Limited generates $2.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kato (Hong Kong) Holdings Limited generates strong operating cash flow of $101.40M, reflecting robust business health.
Free Cash Flow
Kato (Hong Kong) Holdings Limited generates strong free cash flow of $78.40M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.08 in free cash annually.
FCF Yield
2189.HK converts 16.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.005
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 2189.HK Stacks Against Its Sector Peers
| Metric | 2189.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.48 | 28.45 | Better (Cheaper) |
| ROE | 5.27% | 763.00% | Weak |
| Net Margin | 6.75% | -45265.00% (disorted) | Weak |
| Debt/Equity | 0.85 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.01 | 2795.60 | Neutral |
| ROA | 2.93% | -16588.00% (disorted) | Weak |
2189.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kato (Hong Kong) Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.65%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-56.56%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
16.29%
Industry Style: Defensive, Growth, Innovation
High Growth