Steve Leung Design Group Limited
Steve Leung Design Group Limited Fundamental Analysis
Steve Leung Design Group Limited (2262.HK) shows weak financial fundamentals with a PE ratio of 81.70, profit margin of 2.65%, and ROE of 3.57%. The company generates $0.4B in annual revenue with strong year-over-year growth of 14.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2262.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2262.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak2262.HK trades at a premium to fair value.
Growth Score
Moderate2262.HK shows steady but slowing expansion.
Financial Health Score
Excellent2262.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2262.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2262.HK Expensive or Cheap?
P/E Ratio
2262.HK trades at 81.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 2262.HK's PEG of 4.90 indicates potential overvaluation.
Price to Book
The market values Steve Leung Design Group Limited at 2.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 32.50 times EBITDA. This signals the market has high growth expectations.
How Well Does 2262.HK Make Money?
Net Profit Margin
For every $100 in sales, Steve Leung Design Group Limited keeps $2.65 as profit after all expenses.
Operating Margin
Core operations generate 4.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.57 in profit for every $100 of shareholder equity.
ROA
Steve Leung Design Group Limited generates $2.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Steve Leung Design Group Limited produces operating cash flow of $51.69M, showing steady but balanced cash generation.
Free Cash Flow
Steve Leung Design Group Limited generates strong free cash flow of $50.12M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
2262.HK converts 5.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
81.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 2262.HK Stacks Against Its Sector Peers
| Metric | 2262.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 81.70 | 25.85 | Worse (Expensive) |
| ROE | 3.57% | 1270.00% | Weak |
| Net Margin | 2.65% | -41768.00% (disorted) | Weak |
| Debt/Equity | 0.15 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.87 | 10.04 | Strong Liquidity |
| ROA | 2.16% | -1493983.00% (disorted) | Weak |
2262.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 Steve Leung Design Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.49%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-66.67%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
Declining