Victory Securities (Holdings) Company Limited Fundamental Analysis (HKSE: 8540.HK)
Victory Securities (Holdings) Company Limited Fundamental Analysis (HKSE: 8540.HK)
Victory Securities (Holdings) Company Limited (HKSE: 8540.HK) shows weak financial fundamentals with a PE ratio of 49.32, profit margin of 7.72%, and ROE of 7.60%. 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 48.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8540.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak8540.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate8540.HK shows balanced valuation metrics.
Growth Score
Moderate8540.HK shows steady but slowing expansion.
Financial Health Score
Excellent8540.HK maintains a strong and stable balance sheet.
Profitability Score
Weak8540.HK struggles to sustain strong margins.
Key Financial Metrics
Is 8540.HK Expensive or Cheap?
P/E Ratio
8540.HK trades at 49.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 8540.HK's PEG of -0.80 indicates potential undervaluation.
Price to Book
The market values Victory Securities (Holdings) Company Limited at 3.83 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -153.75 times EBITDA. This is generally considered low.
How Well Does 8540.HK Make Money?
Net Profit Margin
For every $100 in sales, Victory Securities (Holdings) Company Limited keeps $7.72 as profit after all expenses.
Operating Margin
Core operations generate -19.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.60 in profit for every $100 of shareholder equity.
ROA
Victory Securities (Holdings) Company Limited generates $4.22 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 $33.58M, showing steady but balanced cash generation.
Free Cash Flow
Victory Securities (Holdings) Company Limited generates strong free cash flow of $28.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.14 in free cash annually.
FCF Yield
8540.HK converts 3.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.15
vs 25 benchmark
How 8540.HK Stacks Against Its Sector Peers
| Metric | 8540.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.32 | 20.76 | Worse (Expensive) |
| ROE | 7.60% | 644.00% | Weak |
| Net Margin | 7.72% | -1529.00% (disorted) | Weak |
| Debt/Equity | 0.52 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 2.52 | 830.27 | Strong Liquidity |
| ROA | 4.22% | -577.00% (disorted) | Weak |
8540.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 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