Solomon Systech (International) Limited
Solomon Systech (International) Limited Fundamental Analysis
Solomon Systech (International) Limited (2878.HK) shows weak financial fundamentals with a PE ratio of 28.09, profit margin of 4.32%, and ROE of 2.85%. The company generates $0.1B in annual revenue with weak year-over-year growth of -25.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2878.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2878.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2878.HK shows balanced valuation metrics.
Growth Score
Weak2878.HK faces weak or negative growth trends.
Financial Health Score
Excellent2878.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate2878.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2878.HK Expensive or Cheap?
P/E Ratio
2878.HK trades at 28.09 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2878.HK's PEG of -5.72 indicates potential undervaluation.
Price to Book
The market values Solomon Systech (International) Limited at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 385.21 times EBITDA. This signals the market has high growth expectations.
How Well Does 2878.HK Make Money?
Net Profit Margin
For every $100 in sales, Solomon Systech (International) Limited keeps $4.32 as profit after all expenses.
Operating Margin
Core operations generate -2.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.85 in profit for every $100 of shareholder equity.
ROA
Solomon Systech (International) Limited generates $2.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Solomon Systech (International) Limited produces operating cash flow of $13.31M, showing steady but balanced cash generation.
Free Cash Flow
Solomon Systech (International) Limited generates strong free cash flow of $11.00M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
2878.HK converts 9.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.006
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.02
vs 25 benchmark
How 2878.HK Stacks Against Its Sector Peers
| Metric | 2878.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.09 | 33.61 | Better (Cheaper) |
| ROE | 2.85% | 1020.00% | Weak |
| Net Margin | 4.32% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 7.01 | 5.65 | Strong Liquidity |
| ROA | 2.45% | -291484.00% (disorted) | Weak |
2878.HK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Solomon Systech (International) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.50%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
136.35%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
746.01%
Industry Style: Growth, Innovation, High Beta
High Growth