Gigadevice
Gigadevice Fundamental Analysis
Gigadevice (3986.HK) shows weak financial fundamentals with a PE ratio of 148.71, profit margin of 15.85%, and ROE of 7.88%. The company generates $11.7B 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 65.6/100 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 3986.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3986.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak3986.HK trades at a premium to fair value.
Growth Score
Moderate3986.HK shows steady but slowing expansion.
Financial Health Score
Excellent3986.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate3986.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 3986.HK Expensive or Cheap?
P/E Ratio
3986.HK trades at 148.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 3986.HK's PEG of 10.15 indicates potential overvaluation.
Price to Book
The market values Gigadevice at 11.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 201.52 times EBITDA. This signals the market has high growth expectations.
How Well Does 3986.HK Make Money?
Net Profit Margin
For every $100 in sales, Gigadevice keeps $15.85 as profit after all expenses.
Operating Margin
Core operations generate 15.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.88 in profit for every $100 of shareholder equity.
ROA
Gigadevice generates $6.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gigadevice generates strong operating cash flow of $3.09B, reflecting robust business health.
Free Cash Flow
Gigadevice generates strong free cash flow of $1.90B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.08 in free cash annually.
FCF Yield
3986.HK converts 0.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
148.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
32.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 3986.HK Stacks Against Its Sector Peers
| Metric | 3986.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 148.71 | 33.61 | Worse (Expensive) |
| ROE | 7.88% | 1020.00% | Weak |
| Net Margin | 15.85% | -56528.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 6.34 | 5.65 | Strong Liquidity |
| ROA | 6.52% | -291484.00% (disorted) | Weak |
3986.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 Gigadevice'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: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta