Victory Securities (Holdings) Company Limited
Victory Securities (Holdings) Company Limited Fundamental Analysis
Victory Securities (Holdings) Company Limited (8540.HK) shows strong financial fundamentals with a PE ratio of 14.93, profit margin of 26.96%, and ROE of 29.87%. The company generates $0.2B 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 76.6/100 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 8540.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent8540.HK demonstrates superior asset utilization.
Valuation Score
Excellent8540.HK trades at attractive valuation levels.
Growth Score
Moderate8540.HK shows steady but slowing expansion.
Financial Health Score
Excellent8540.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent8540.HK achieves industry-leading margins.
Key Financial Metrics
Is 8540.HK Expensive or Cheap?
P/E Ratio
8540.HK trades at 14.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 8540.HK's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Victory Securities (Holdings) Company Limited at 3.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.11 times EBITDA. This signals the market has high growth expectations.
How Well Does 8540.HK Make Money?
Net Profit Margin
For every $100 in sales, Victory Securities (Holdings) Company Limited keeps $26.96 as profit after all expenses.
Operating Margin
Core operations generate 37.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.87 in profit for every $100 of shareholder equity.
ROA
Victory Securities (Holdings) Company Limited generates $11.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Victory Securities (Holdings) Company Limited produces operating cash flow of $33.87M, showing steady but balanced cash generation.
Free Cash Flow
Victory Securities (Holdings) Company Limited generates strong free cash flow of $33.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
8540.HK converts 3.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.001
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 8540.HK Stacks Against Its Sector Peers
| Metric | 8540.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.93 | 18.56 | Better (Cheaper) |
| ROE | 29.87% | 828.00% | Weak |
| Net Margin | 26.96% | -175.00% (disorted) | Strong |
| Debt/Equity | 0.40 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 4.79 | 663.54 | Strong Liquidity |
| ROA | 11.96% | -21308.00% (disorted) | Strong |
8540.HK outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Victory Securities (Holdings) Company Limited'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: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical