SMC Electric Limited
SMC Electric Limited Fundamental Analysis
SMC Electric Limited (2381.HK) shows weak financial fundamentals with a PE ratio of 30.55, profit margin of 4.35%, and ROE of 6.92%. The company generates $0.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2381.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2381.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2381.HK shows balanced valuation metrics.
Growth Score
Moderate2381.HK shows steady but slowing expansion.
Financial Health Score
Excellent2381.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2381.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2381.HK Expensive or Cheap?
P/E Ratio
2381.HK trades at 30.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 2381.HK's PEG of -0.47 indicates potential undervaluation.
Price to Book
The market values SMC Electric Limited at 2.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 50.29 times EBITDA. This signals the market has high growth expectations.
How Well Does 2381.HK Make Money?
Net Profit Margin
For every $100 in sales, SMC Electric Limited keeps $4.35 as profit after all expenses.
Operating Margin
Core operations generate 1.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.92 in profit for every $100 of shareholder equity.
ROA
SMC Electric Limited generates $5.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SMC Electric Limited produces operating cash flow of $22.03M, showing steady but balanced cash generation.
Free Cash Flow
SMC Electric Limited produces free cash flow of $20.94M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
2381.HK converts 7.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 2381.HK Stacks Against Its Sector Peers
| Metric | 2381.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.55 | 23.78 | Worse (Expensive) |
| ROE | 6.92% | 1098.00% | Weak |
| Net Margin | 4.35% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 2.77 | 2.64 | Strong Liquidity |
| ROA | 5.09% | -8081.00% (disorted) | Weak |
2381.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 SMC Electric Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary