Gigadevice Fundamental Analysis
Gigadevice (3986.HK) shows moderate financial fundamentals with a PE ratio of 132.26, profit margin of 25.04%, and ROE of 14.30%. The company generates $15.5B 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 81.2/100 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 3986.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent3986.HK demonstrates superior asset utilization.
Valuation Score
Moderate3986.HK shows balanced valuation metrics.
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 132.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 3986.HK's PEG of 1.01 indicates fair valuation.
Price to Book
The market values Gigadevice at 14.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 153.28 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 $25.04 as profit after all expenses.
Operating Margin
Core operations generate 25.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.30 in profit for every $100 of shareholder equity.
ROA
Gigadevice generates $10.29 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 $5.06B, reflecting robust business health.
Free Cash Flow
Gigadevice generates strong free cash flow of $3.48B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.81 in free cash annually.
FCF Yield
3986.HK converts 0.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
132.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
45.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 3986.HK Stacks Against Its Sector Peers
| Metric | 3986.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 132.26 | 42.18 | Worse (Expensive) |
| ROE | 14.30% | 780.00% | Weak |
| Net Margin | 25.04% | 11011854821.00% | Weak |
| Debt/Equity | 0.00 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 9.66 | 4.88 | Strong Liquidity |
| ROA | 10.29% | 119.00% | Weak |
3986.HK outperforms its industry in 2 out of 6 key metrics, 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