Orient Securities Company Limited Class H Fundamental Analysis (HKSE: 3958.HK)
Orient Securities Company Limited Class H Fundamental Analysis (HKSE: 3958.HK)
Orient Securities Company Limited Class H (HKSE: 3958.HK) shows moderate financial fundamentals with a PE ratio of 5.09, profit margin of 22.64%, and ROE of 10.03%. The company generates $60.2B in annual revenue with weak year-over-year growth of -14.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3958.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3958.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3958.HK trades at attractive valuation levels.
Growth Score
Moderate3958.HK shows steady but slowing expansion.
Financial Health Score
Weak3958.HK carries high financial risk with limited liquidity.
Profitability Score
Moderate3958.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 3958.HK Expensive or Cheap?
P/E Ratio
3958.HK trades at 5.09 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3958.HK's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Orient Securities Company Limited Class H at 0.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.84 times EBITDA. This is generally considered low.
How Well Does 3958.HK Make Money?
Net Profit Margin
For every $100 in sales, Orient Securities Company Limited Class H keeps $22.64 as profit after all expenses.
Operating Margin
Core operations generate 31.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.03 in profit for every $100 of shareholder equity.
ROA
Orient Securities Company Limited Class H generates $1.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Orient Securities Company Limited Class H generates strong operating cash flow of $33.68B, reflecting robust business health.
Free Cash Flow
Orient Securities Company Limited Class H generates strong free cash flow of $32.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.29 in free cash annually.
FCF Yield
3958.HK converts 28.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 3958.HK Stacks Against Its Sector Peers
| Metric | 3958.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.09 | 20.76 | Better (Cheaper) |
| ROE | 10.03% | 644.00% | Weak |
| Net Margin | 22.64% | -1529.00% (disorted) | Strong |
| Debt/Equity | 1.53 | 0.88 | Weak (High Leverage) |
| Current Ratio | 0.00 | 830.27 | Weak Liquidity |
| ROA | 1.50% | -577.00% (disorted) | Weak |
3958.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Orient Securities Company Limited Class H's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-39.72%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
70.01%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-99.43%
Industry Style: Value, Dividend, Cyclical
Declining