Modern Dental Group Limited Fundamental Analysis (HKSE: 3600.HK)
Modern Dental Group Limited Fundamental Analysis (HKSE: 3600.HK)
Modern Dental Group Limited (HKSE: 3600.HK) shows strong financial fundamentals with a PE ratio of 11.03, profit margin of 17.44%, and ROE of 20.11%. The company generates $3.9B in annual revenue with strong year-over-year growth of 11.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.1/100 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 3600.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent3600.HK demonstrates superior asset utilization.
Valuation Score
Excellent3600.HK trades at attractive valuation levels.
Growth Score
Excellent3600.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent3600.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent3600.HK achieves industry-leading margins.
Key Financial Metrics
Is 3600.HK Expensive or Cheap?
P/E Ratio
3600.HK trades at 11.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3600.HK's PEG of 0.24 indicates potential undervaluation.
Price to Book
The market values Modern Dental Group Limited at 2.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.84 times EBITDA. This is generally considered low.
How Well Does 3600.HK Make Money?
Net Profit Margin
For every $100 in sales, Modern Dental Group Limited keeps $17.44 as profit after all expenses.
Operating Margin
Core operations generate 21.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.11 in profit for every $100 of shareholder equity.
ROA
Modern Dental Group Limited generates $14.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Modern Dental Group Limited produces operating cash flow of $464.73M, showing steady but balanced cash generation.
Free Cash Flow
Modern Dental Group Limited generates strong free cash flow of $429.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.46 in free cash annually.
FCF Yield
3600.HK converts 5.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 3600.HK Stacks Against Its Sector Peers
| Metric | 3600.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.03 | 30.58 | Better (Cheaper) |
| ROE | 20.11% | 579.00% | Weak |
| Net Margin | 17.44% | 24148.00% | Weak |
| Debt/Equity | 0.17 | 0.52 | Strong (Low Leverage) |
| Current Ratio | 3.39 | 5.66 | Strong Liquidity |
| ROA | 14.30% | -58.00% (disorted) | Strong |
3600.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Modern Dental Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.15%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
468.74%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
108.19%
Industry Style: Defensive, Growth, Innovation
High Growth