AAG Energy Holdings Limited Fundamental Analysis (HKSE: 2686.HK)
AAG Energy Holdings Limited Fundamental Analysis (HKSE: 2686.HK)
AAG Energy Holdings Limited (HKSE: 2686.HK) shows strong financial fundamentals with a PE ratio of 3.73, profit margin of 55.17%, and ROE of 20.22%. The company generates $2.6B 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 81.6/100 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
We analyze 2686.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent2686.HK demonstrates superior asset utilization.
Valuation Score
Excellent2686.HK trades at attractive valuation levels.
Growth Score
Moderate2686.HK shows steady but slowing expansion.
Financial Health Score
Excellent2686.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent2686.HK achieves industry-leading margins.
Key Financial Metrics
Is 2686.HK Expensive or Cheap?
P/E Ratio
2686.HK trades at 3.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2686.HK's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values AAG Energy Holdings Limited at 0.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.08 times EBITDA. This is generally considered low.
How Well Does 2686.HK Make Money?
Net Profit Margin
For every $100 in sales, AAG Energy Holdings Limited keeps $55.17 as profit after all expenses.
Operating Margin
Core operations generate 66.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.22 in profit for every $100 of shareholder equity.
ROA
AAG Energy Holdings Limited generates $15.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AAG Energy Holdings Limited generates strong operating cash flow of $1.82B, reflecting robust business health.
Free Cash Flow
AAG Energy Holdings Limited generates strong free cash flow of $694.75M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.20 in free cash annually.
FCF Yield
2686.HK converts 13.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How 2686.HK Stacks Against Its Sector Peers
| Metric | 2686.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.73 | 20.94 | Better (Cheaper) |
| ROE | 20.22% | 1271.00% | Weak |
| Net Margin | 55.17% | 1265.00% | Weak |
| Debt/Equity | 0.01 | -1.74 (disorted) | Distorted |
| Current Ratio | 2.62 | 2.22 | Strong Liquidity |
| ROA | 15.21% | 4309.00% | Weak |
2686.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AAG Energy Holdings 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, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity