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Gala Technology Holding Limited

2458.HKHKSE
Technology
Electronic Gaming & Multimedia
HK$5.25
HK$0.15(2.94%)
Hong Kong Market is Open • 14:01

Gala Technology Holding Limited Fundamental Analysis

Gala Technology Holding Limited (2458.HK) shows moderate financial fundamentals with a PE ratio of 6.39, profit margin of 10.41%, and ROE of 22.27%. The company generates $1.0B in annual revenue with N/A year-over-year growth of N/A.

Key Strengths

ROE22.27%
Cash Position69.29%
PEG Ratio-0.47
Current Ratio2.27

Areas of Concern

Operating Margin9.96%
We analyze 2458.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 74.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.

Fundamental Health Score

B
74.3/100

We analyze 2458.HK's fundamental strength across five key dimensions:

Efficiency Score

Excellent

2458.HK demonstrates superior asset utilization.

ROA > 10%
13.01%

Valuation Score

Excellent

2458.HK trades at attractive valuation levels.

PE < 25
6.39
PEG Ratio < 2
-0.47

Growth Score

Moderate

2458.HK shows steady but slowing expansion.

Revenue Growth > 5%
N/A
EPS Growth > 10%
N/A

Financial Health Score

Excellent

2458.HK maintains a strong and stable balance sheet.

Debt/Equity < 1
0.06
Current Ratio > 1
2.27

Profitability Score

Moderate

2458.HK maintains healthy but balanced margins.

ROE > 15%
22.27%
Net Margin ≥ 15%
10.41%
Positive Free Cash Flow
Yes

Key Financial Metrics

Is 2458.HK Expensive or Cheap?

P/E Ratio

2458.HK trades at 6.39 times earnings. This suggests potential undervaluation.

6.39

PEG Ratio

When adjusting for growth, 2458.HK's PEG of -0.47 indicates potential undervaluation.

-0.47

Price to Book

The market values Gala Technology Holding Limited at 1.42 times its book value. This may indicate undervaluation.

1.42

EV/EBITDA

Enterprise value stands at 7.19 times EBITDA. This is generally considered low.

7.19

How Well Does 2458.HK Make Money?

Net Profit Margin

For every $100 in sales, Gala Technology Holding Limited keeps $10.41 as profit after all expenses.

10.41%

Operating Margin

Core operations generate 9.96 in profit for every $100 in revenue, before interest and taxes.

9.96%

ROE

Management delivers $22.27 in profit for every $100 of shareholder equity.

22.27%

ROA

Gala Technology Holding Limited generates $13.01 in profit for every $100 in assets, demonstrating efficient asset deployment.

13.01%

Following the Money - Real Cash Generation

Operating Cash Flow

Gala Technology Holding Limited produces operating cash flow of $214.80M, showing steady but balanced cash generation.

$214.80M

Free Cash Flow

Gala Technology Holding Limited generates strong free cash flow of $209.08M, providing ample flexibility for dividends, buybacks, or growth.

$209.08M

FCF Per Share

Each share generates $1.47 in free cash annually.

$1.47

FCF Yield

2458.HK converts 29.50% of its market value into free cash.

29.50%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

6.39

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

-0.47

vs 25 benchmark

P/B Ratio

Price to book value ratio

1.42

vs 25 benchmark

P/S Ratio

Price to sales ratio

0.72

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.06

vs 25 benchmark

Current Ratio

Current assets to current liabilities

2.27

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.22

vs 25 benchmark

ROA

Return on assets percentage

0.13

vs 25 benchmark

ROCE

Return on capital employed

0.19

vs 25 benchmark

How 2458.HK Stacks Against Its Sector Peers

Metric2458.HK ValueSector AveragePerformance
P/E Ratio6.3933.98 Better (Cheaper)
ROE22.27%1007.00% Weak
Net Margin10.41%-47797.00% (disorted) Strong
Debt/Equity0.060.44 Strong (Low Leverage)
Current Ratio2.275.66 Strong Liquidity
ROA13.01%-287350.00% (disorted) Strong

2458.HK outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Gala Technology Holding 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: Growth, Innovation, High Beta

EPS CAGR

N/A

Industry Style: Growth, Innovation, High Beta

FCF CAGR

N/A

Industry Style: Growth, Innovation, High Beta

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