Haidilao International Holding Ltd.
Haidilao International Holding Ltd. Fundamental Analysis
Haidilao International Holding Ltd. (6862.HK) shows moderate financial fundamentals with a PE ratio of 17.56, profit margin of 9.36%, and ROE of 40.94%. The company generates $42.8B 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 60.7/100 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 6862.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent6862.HK demonstrates superior asset utilization.
Valuation Score
Excellent6862.HK trades at attractive valuation levels.
Growth Score
Moderate6862.HK shows steady but slowing expansion.
Financial Health Score
Excellent6862.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate6862.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 6862.HK Expensive or Cheap?
P/E Ratio
6862.HK trades at 17.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6862.HK's PEG of -2.03 indicates potential undervaluation.
Price to Book
The market values Haidilao International Holding Ltd. at 7.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.31 times EBITDA. This signals the market has high growth expectations.
How Well Does 6862.HK Make Money?
Net Profit Margin
For every $100 in sales, Haidilao International Holding Ltd. keeps $9.36 as profit after all expenses.
Operating Margin
Core operations generate 16.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $40.94 in profit for every $100 of shareholder equity.
ROA
Haidilao International Holding Ltd. generates $18.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Haidilao International Holding Ltd. generates limited operating cash flow of $3.96B, signaling weaker underlying cash strength.
Free Cash Flow
Haidilao International Holding Ltd. produces free cash flow of $3.08B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.57 in free cash annually.
FCF Yield
6862.HK converts 4.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.55
vs 25 benchmark
How 6862.HK Stacks Against Its Sector Peers
| Metric | 6862.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.56 | 23.78 | Better (Cheaper) |
| ROE | 40.94% | 1098.00% | Weak |
| Net Margin | 9.36% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.59 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 1.33 | 2.64 | Neutral |
| ROA | 18.15% | -8081.00% (disorted) | Strong |
6862.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Haidilao International Holding Ltd.'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: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary