AIA Group Limited Fundamental Analysis (HKSE: 81299.HK)
AIA Group Limited Fundamental Analysis (HKSE: 81299.HK)
AIA Group Limited (HKSE: 81299.HK) shows strong financial fundamentals with a PE ratio of 11.92, profit margin of 23.20%, and ROE of 19.05%. The company generates $39.3B in annual revenue with strong year-over-year growth of 60.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.1/100 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 81299.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak81299.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent81299.HK trades at attractive valuation levels.
Growth Score
Moderate81299.HK shows steady but slowing expansion.
Financial Health Score
Moderate81299.HK shows balanced financial health with some risks.
Profitability Score
Excellent81299.HK achieves industry-leading margins.
Key Financial Metrics
Is 81299.HK Expensive or Cheap?
P/E Ratio
81299.HK trades at 11.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 81299.HK's PEG of -15.91 indicates potential undervaluation.
Price to Book
The market values AIA Group Limited at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.82 times EBITDA. This is generally considered low.
How Well Does 81299.HK Make Money?
Net Profit Margin
For every $100 in sales, AIA Group Limited keeps $23.20 as profit after all expenses.
Operating Margin
Core operations generate 27.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.05 in profit for every $100 of shareholder equity.
ROA
AIA Group Limited generates $2.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AIA Group Limited generates limited operating cash flow of $1.80B, signaling weaker underlying cash strength.
Free Cash Flow
AIA Group Limited produces free cash flow of $1.61B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
81299.HK converts 1.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-15.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.009
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 81299.HK Stacks Against Its Sector Peers
| Metric | 81299.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.92 | 20.40 | Better (Cheaper) |
| ROE | 19.05% | 638.00% | Weak |
| Net Margin | 23.20% | -568.00% (disorted) | Strong |
| Debt/Equity | 0.52 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 818.60 | Weak Liquidity |
| ROA | 2.22% | 60.00% | Weak |
81299.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 AIA Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-26.63%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
23.72%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
159.16%
Industry Style: Value, Dividend, Cyclical
High Growth