LX Technology Group Limited Fundamental Analysis (HKSE: 2436.HK)
LX Technology Group Limited Fundamental Analysis (HKSE: 2436.HK)
LX Technology Group Limited (HKSE: 2436.HK) shows weak financial fundamentals with a PE ratio of 463.78, profit margin of 0.57%, and ROE of 1.84%. The company generates $2.1B in annual revenue with weak year-over-year growth of 0.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2436.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2436.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2436.HK shows balanced valuation metrics.
Growth Score
Weak2436.HK faces weak or negative growth trends.
Financial Health Score
Moderate2436.HK shows balanced financial health with some risks.
Profitability Score
Moderate2436.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2436.HK Expensive or Cheap?
P/E Ratio
2436.HK trades at 463.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 2436.HK's PEG of 1.27 indicates fair valuation.
Price to Book
The market values LX Technology Group Limited at 9.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.71 times EBITDA. This signals the market has high growth expectations.
How Well Does 2436.HK Make Money?
Net Profit Margin
For every $100 in sales, LX Technology Group Limited keeps $0.57 as profit after all expenses.
Operating Margin
Core operations generate 0.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.84 in profit for every $100 of shareholder equity.
ROA
LX Technology Group Limited generates $0.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LX Technology Group Limited produces operating cash flow of $425.04M, showing steady but balanced cash generation.
Free Cash Flow
LX Technology Group Limited produces free cash flow of $163.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.46 in free cash annually.
FCF Yield
2436.HK converts 2.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
463.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How 2436.HK Stacks Against Its Sector Peers
| Metric | 2436.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 463.78 | 35.20 | Worse (Expensive) |
| ROE | 1.84% | 749.00% | Weak |
| Net Margin | 0.57% | -2813.00% (disorted) | Weak |
| Debt/Equity | 1.15 | 0.59 | Weak (High Leverage) |
| Current Ratio | 1.33 | 6.19 | Neutral |
| ROA | 0.74% | 328.00% | Weak |
2436.HK outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LX Technology Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
144.10%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
107.98%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
326.78%
Industry Style: Growth, Innovation, High Beta
High Growth