Dawnrays Pharmaceutical (Holdings) Limited
Dawnrays Pharmaceutical (Holdings) Limited Fundamental Analysis
Dawnrays Pharmaceutical (Holdings) Limited (2348.HK) shows moderate financial fundamentals with a PE ratio of 7.21, profit margin of 17.38%, and ROE of 6.34%. The company generates $1.2B in annual revenue with weak year-over-year growth of -7.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2348.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2348.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2348.HK trades at attractive valuation levels.
Growth Score
Moderate2348.HK shows steady but slowing expansion.
Financial Health Score
Excellent2348.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate2348.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2348.HK Expensive or Cheap?
P/E Ratio
2348.HK trades at 7.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2348.HK's PEG of 0.49 indicates potential undervaluation.
Price to Book
The market values Dawnrays Pharmaceutical (Holdings) Limited at 0.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.04 times EBITDA. This is generally considered low.
How Well Does 2348.HK Make Money?
Net Profit Margin
For every $100 in sales, Dawnrays Pharmaceutical (Holdings) Limited keeps $17.38 as profit after all expenses.
Operating Margin
Core operations generate 18.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.34 in profit for every $100 of shareholder equity.
ROA
Dawnrays Pharmaceutical (Holdings) Limited generates $5.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dawnrays Pharmaceutical (Holdings) Limited produces operating cash flow of $250.79M, showing steady but balanced cash generation.
Free Cash Flow
Dawnrays Pharmaceutical (Holdings) Limited generates strong free cash flow of $195.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
2348.HK converts 12.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How 2348.HK Stacks Against Its Sector Peers
| Metric | 2348.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.21 | 28.45 | Better (Cheaper) |
| ROE | 6.34% | 763.00% | Weak |
| Net Margin | 17.38% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 4.64 | 2795.60 | Strong Liquidity |
| ROA | 5.29% | -16588.00% (disorted) | Weak |
2348.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dawnrays Pharmaceutical (Holdings) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.77%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
131.40%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-16.48%
Industry Style: Defensive, Growth, Innovation
Declining