Shanghai Henlius Biotech, Inc. Fundamental Analysis
Shanghai Henlius Biotech, Inc. (2696.HK) shows moderate financial fundamentals with a PE ratio of 31.64, profit margin of 12.41%, and ROE of 23.99%. The company generates $6.5B 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 58.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 2696.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2696.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2696.HK shows balanced valuation metrics.
Growth Score
Moderate2696.HK shows steady but slowing expansion.
Financial Health Score
Moderate2696.HK shows balanced financial health with some risks.
Profitability Score
Moderate2696.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2696.HK Expensive or Cheap?
P/E Ratio
2696.HK trades at 31.64 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 2696.HK's PEG of 0.37 indicates potential undervaluation.
Price to Book
The market values Shanghai Henlius Biotech, Inc. at 6.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.82 times EBITDA. This signals the market has high growth expectations.
How Well Does 2696.HK Make Money?
Net Profit Margin
For every $100 in sales, Shanghai Henlius Biotech, Inc. keeps $12.41 as profit after all expenses.
Operating Margin
Core operations generate 12.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.99 in profit for every $100 of shareholder equity.
ROA
Shanghai Henlius Biotech, Inc. generates $6.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shanghai Henlius Biotech, Inc. produces operating cash flow of $1.24B, showing steady but balanced cash generation.
Free Cash Flow
Shanghai Henlius Biotech, Inc. generates strong free cash flow of $1.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.92 in free cash annually.
FCF Yield
2696.HK converts 4.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 2696.HK Stacks Against Its Sector Peers
| Metric | 2696.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.64 | 29.63 | Neutral |
| ROE | 23.99% | 223.00% | Weak |
| Net Margin | 12.41% | -38669.00% (disorted) | Strong |
| Debt/Equity | 0.91 | 0.82 | Neutral |
| Current Ratio | 0.71 | 4.30 | Weak Liquidity |
| ROA | 6.69% | -379.00% (disorted) | Weak |
2696.HK outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shanghai Henlius Biotech, Inc.'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: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation