Hengdeli Holdings Limited
Hengdeli Holdings Limited Fundamental Analysis
Hengdeli Holdings Limited (3389.HK) shows weak financial fundamentals with a PE ratio of -18.69, profit margin of -4.68%, and ROE of -1.15%. The company generates $0.8B in annual revenue with weak year-over-year growth of -26.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -1.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3389.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3389.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3389.HK trades at attractive valuation levels.
Growth Score
Weak3389.HK faces weak or negative growth trends.
Financial Health Score
Excellent3389.HK maintains a strong and stable balance sheet.
Profitability Score
Weak3389.HK struggles to sustain strong margins.
Key Financial Metrics
Is 3389.HK Expensive or Cheap?
P/E Ratio
3389.HK trades at -18.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3389.HK's PEG of -0.48 indicates potential undervaluation.
Price to Book
The market values Hengdeli Holdings Limited at 0.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -21.42 times EBITDA. This is generally considered low.
How Well Does 3389.HK Make Money?
Net Profit Margin
For every $100 in sales, Hengdeli Holdings Limited keeps $-4.68 as profit after all expenses.
Operating Margin
Core operations generate -2.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.15 in profit for every $100 of shareholder equity.
ROA
Hengdeli Holdings Limited generates $-1.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hengdeli Holdings Limited produces operating cash flow of $85.71M, showing steady but balanced cash generation.
Free Cash Flow
Hengdeli Holdings Limited generates strong free cash flow of $78.13M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
3389.HK converts 11.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-18.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How 3389.HK Stacks Against Its Sector Peers
| Metric | 3389.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -18.69 | 23.72 | Better (Cheaper) |
| ROE | -1.15% | 1091.00% | Weak |
| Net Margin | -4.68% | -627.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 11.49 | 2.64 | Strong Liquidity |
| ROA | -1.07% | 1053.00% | Weak |
3389.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 Hengdeli Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-54.38%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
78.76%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-149.43%
Industry Style: Cyclical, Growth, Discretionary
Declining