LFG Investment Holdings Limited Fundamental Analysis (HKSE: 3938.HK)
LFG Investment Holdings Limited Fundamental Analysis (HKSE: 3938.HK)
LFG Investment Holdings Limited (HKSE: 3938.HK) shows weak financial fundamentals with a PE ratio of 174.29, profit margin of 11.96%, and ROE of 5.89%. The company generates $0.1B 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 54.5/100 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 3938.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3938.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate3938.HK shows balanced valuation metrics.
Growth Score
Weak3938.HK faces weak or negative growth trends.
Financial Health Score
Excellent3938.HK maintains a strong and stable balance sheet.
Profitability Score
Weak3938.HK struggles to sustain strong margins.
Key Financial Metrics
Is 3938.HK Expensive or Cheap?
P/E Ratio
3938.HK trades at 174.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 3938.HK's PEG of 0.60 indicates potential undervaluation.
Price to Book
The market values LFG Investment Holdings Limited at 10.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 106.00 times EBITDA. This signals the market has high growth expectations.
How Well Does 3938.HK Make Money?
Net Profit Margin
For every $100 in sales, LFG Investment Holdings Limited keeps $11.96 as profit after all expenses.
Operating Margin
Core operations generate 14.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.89 in profit for every $100 of shareholder equity.
ROA
LFG Investment Holdings Limited generates $1.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LFG Investment Holdings Limited produces operating cash flow of $13.01M, showing steady but balanced cash generation.
Free Cash Flow
LFG Investment Holdings Limited generates strong free cash flow of $11.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
3938.HK converts 0.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
174.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
22.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
26.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 3938.HK Stacks Against Its Sector Peers
| Metric | 3938.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 174.29 | 21.03 | Worse (Expensive) |
| ROE | 5.89% | 647.00% | Weak |
| Net Margin | 11.96% | -1591.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 26.69 | 912.43 | Strong Liquidity |
| ROA | 1.92% | -579.00% (disorted) | Weak |
3938.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LFG Investment 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: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical