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Beauty Farm Medical and Health Industry Inc.

Beauty Farm Medical and Health Industry Inc. Fundamental Analysis (HKSE: 2373.HK)

2373.HKHKSE
HealthcareMedical - Care Facilities
HK$19.67
HK$1.87(10.51%)
Hong Kong Market opens in 1h 53m

Beauty Farm Medical and Health Industry Inc. Fundamental Analysis (HKSE: 2373.HK)

Beauty Farm Medical and Health Industry Inc. (HKSE: 2373.HK) shows strong financial fundamentals with a PE ratio of 10.51, profit margin of 11.22%, and ROE of 31.63%. The company generates $3.5B in annual revenue with strong year-over-year growth of 16.65%.

Key Strengths

ROE31.63%
Cash Position30.76%
PEG Ratio0.33

Areas of Concern

Current Ratio0.75
We analyze 2373.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 66.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.

Fundamental Health Score

C+
66.3/100

We analyze 2373.HK's fundamental strength across five key dimensions:

Efficiency Score

Weak

2373.HK struggles to generate sufficient returns from assets.

ROA > 10%
5.97%

Valuation Score

Excellent

2373.HK trades at attractive valuation levels.

PE < 25
10.51
PEG Ratio < 2
0.33

Growth Score

Excellent

2373.HK delivers strong and consistent growth momentum.

Revenue Growth > 5%
16.65%
EPS Growth > 10%
39.39%

Financial Health Score

Moderate

2373.HK shows balanced financial health with some risks.

Debt/Equity < 1
0.94
Current Ratio > 1
0.75

Profitability Score

Moderate

2373.HK maintains healthy but balanced margins.

ROE > 15%
31.63%
Net Margin ≥ 15%
11.22%
Positive Free Cash Flow
Yes

Key Financial Metrics

Is 2373.HK Expensive or Cheap?

P/E Ratio

2373.HK trades at 10.51 times earnings. This suggests potential undervaluation.

10.51

PEG Ratio

When adjusting for growth, 2373.HK's PEG of 0.33 indicates potential undervaluation.

0.33

Price to Book

The market values Beauty Farm Medical and Health Industry Inc. at 2.92 times its book value. This may indicate undervaluation.

2.92

EV/EBITDA

Enterprise value stands at 4.06 times EBITDA. This is generally considered low.

4.06

How Well Does 2373.HK Make Money?

Net Profit Margin

For every $100 in sales, Beauty Farm Medical and Health Industry Inc. keeps $11.22 as profit after all expenses.

11.22%

Operating Margin

Core operations generate 16.65 in profit for every $100 in revenue, before interest and taxes.

16.65%

ROE

Management delivers $31.63 in profit for every $100 of shareholder equity.

31.63%

ROA

Beauty Farm Medical and Health Industry Inc. generates $5.97 in profit for every $100 in assets, demonstrating efficient asset deployment.

5.97%

Following the Money - Real Cash Generation

Operating Cash Flow

Beauty Farm Medical and Health Industry Inc. generates strong operating cash flow of $1.17B, reflecting robust business health.

$1.17B

Free Cash Flow

Beauty Farm Medical and Health Industry Inc. generates strong free cash flow of $1.14B, providing ample flexibility for dividends, buybacks, or growth.

$1.14B

FCF Per Share

Each share generates $4.59 in free cash annually.

$4.59

FCF Yield

2373.HK converts 26.94% of its market value into free cash.

26.94%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

10.51

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

0.33

vs 25 benchmark

P/B Ratio

Price to book value ratio

2.92

vs 25 benchmark

P/S Ratio

Price to sales ratio

1.22

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.94

vs 25 benchmark

Current Ratio

Current assets to current liabilities

0.75

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.32

vs 25 benchmark

ROA

Return on assets percentage

0.06

vs 25 benchmark

ROCE

Return on capital employed

0.22

vs 25 benchmark

How 2373.HK Stacks Against Its Sector Peers

Metric2373.HK ValueSector AveragePerformance
P/E Ratio10.5131.31 Better (Cheaper)
ROE31.63%526.00% Weak
Net Margin11.22%21528.00% Weak
Debt/Equity0.940.53 Weak (High Leverage)
Current Ratio0.755.62 Weak Liquidity
ROA5.97%-105.00% (disorted) Weak

2373.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 Beauty Farm Medical and Health Industry Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

98.55%

Industry Style: Defensive, Growth, Innovation

High Growth

EPS CAGR

109.26%

Industry Style: Defensive, Growth, Innovation

High Growth

FCF CAGR

46.04%

Industry Style: Defensive, Growth, Innovation

High Growth

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