Neutech Group Limited
Neutech Group Limited Fundamental Analysis
Neutech Group Limited (9616.HK) shows strong financial fundamentals with a PE ratio of 4.40, profit margin of 20.39%, and ROE of 12.76%. The company generates $1.5B in annual revenue with strong year-over-year growth of 13.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.9/100 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 9616.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak9616.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent9616.HK trades at attractive valuation levels.
Growth Score
Moderate9616.HK shows steady but slowing expansion.
Financial Health Score
Weak9616.HK carries high financial risk with limited liquidity.
Profitability Score
Weak9616.HK struggles to sustain strong margins.
Key Financial Metrics
Is 9616.HK Expensive or Cheap?
P/E Ratio
9616.HK trades at 4.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 9616.HK's PEG of -0.83 indicates potential undervaluation.
Price to Book
The market values Neutech Group Limited at 0.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.00 times EBITDA. This is generally considered low.
How Well Does 9616.HK Make Money?
Net Profit Margin
For every $100 in sales, Neutech Group Limited keeps $20.39 as profit after all expenses.
Operating Margin
Core operations generate 4.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.76 in profit for every $100 of shareholder equity.
ROA
Neutech Group Limited generates $3.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Neutech Group Limited produces operating cash flow of $198.12M, showing steady but balanced cash generation.
Free Cash Flow
Neutech Group Limited generates weak or negative free cash flow of $-66.63M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.10 in free cash annually.
FCF Yield
9616.HK converts -4.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How 9616.HK Stacks Against Its Sector Peers
| Metric | 9616.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.40 | 26.34 | Better (Cheaper) |
| ROE | 12.76% | 1277.00% | Weak |
| Net Margin | 20.39% | -41677.00% (disorted) | Strong |
| Debt/Equity | 1.33 | 0.71 | Weak (High Leverage) |
| Current Ratio | 0.91 | 10.10 | Weak Liquidity |
| ROA | 3.95% | -1507984.00% (disorted) | Weak |
9616.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Neutech Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
119.86%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
245.06%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
90.20%
Industry Style: Cyclical, Value, Infrastructure
High Growth