Midea Real Estate Holding Limited
Midea Real Estate Holding Limited Fundamental Analysis
Midea Real Estate Holding Limited (3990.HK) shows moderate financial fundamentals with a PE ratio of 7.39, profit margin of 13.46%, and ROE of 11.38%. The company generates $4.1B in annual revenue with weak year-over-year growth of -94.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -44.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3990.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3990.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3990.HK trades at attractive valuation levels.
Growth Score
Weak3990.HK faces weak or negative growth trends.
Financial Health Score
Excellent3990.HK maintains a strong and stable balance sheet.
Profitability Score
Weak3990.HK struggles to sustain strong margins.
Key Financial Metrics
Is 3990.HK Expensive or Cheap?
P/E Ratio
3990.HK trades at 7.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3990.HK's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Midea Real Estate Holding Limited at 0.84 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.34 times EBITDA. This is generally considered low.
How Well Does 3990.HK Make Money?
Net Profit Margin
For every $100 in sales, Midea Real Estate Holding Limited keeps $13.46 as profit after all expenses.
Operating Margin
Core operations generate 20.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.38 in profit for every $100 of shareholder equity.
ROA
Midea Real Estate Holding Limited generates $5.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Midea Real Estate Holding Limited produces operating cash flow of $522.20M, showing steady but balanced cash generation.
Free Cash Flow
Midea Real Estate Holding Limited generates strong free cash flow of $512.56M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
3990.HK converts 12.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How 3990.HK Stacks Against Its Sector Peers
| Metric | 3990.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.39 | 23.54 | Better (Cheaper) |
| ROE | 11.38% | 687.00% | Weak |
| Net Margin | 13.46% | -37584.00% (disorted) | Strong |
| Debt/Equity | 0.16 | -20.90 (disorted) | Distorted |
| Current Ratio | 5.36 | 16.59 | Strong Liquidity |
| ROA | 5.76% | -931.00% (disorted) | Weak |
3990.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Midea Real Estate Holding Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-92.44%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-139.89%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-416.71%
Industry Style: Income, Inflation Hedge, REIT
Declining