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Tanwan Inc

9890.HKHKSE
Technology
Electronic Gaming & Multimedia
HK$14.38
HK$-0.48(-3.23%)
Hong Kong Market is Open • 15:45

Tanwan Inc Fundamental Analysis

Tanwan Inc (9890.HK) shows strong financial fundamentals with a PE ratio of 4.77, profit margin of 35.70%, and ROE of 39.89%. The company generates $4.0B in annual revenue with weak year-over-year growth of -14.34%.

Key Strengths

ROE39.89%
Cash Position49.22%
PEG Ratio0.11
Current Ratio1.87

Areas of Concern

Operating Margin2.71%
We analyze 9890.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 46.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.

Fundamental Health Score

D
46.5/100

We analyze 9890.HK's fundamental strength across five key dimensions:

Efficiency Score

Excellent

9890.HK demonstrates superior asset utilization.

ROA > 10%
19.93%

Valuation Score

Excellent

9890.HK trades at attractive valuation levels.

PE < 25
4.77
PEG Ratio < 2
0.11

Growth Score

Weak

9890.HK faces weak or negative growth trends.

Revenue Growth > 5%
-14.34%
EPS Growth > 10%
-1.01%

Financial Health Score

Excellent

9890.HK maintains a strong and stable balance sheet.

Debt/Equity < 1
0.02
Current Ratio > 1
1.87

Profitability Score

Moderate

9890.HK maintains healthy but balanced margins.

ROE > 15%
39.89%
Net Margin ≥ 15%
35.70%
Positive Free Cash Flow
No

Key Financial Metrics

Is 9890.HK Expensive or Cheap?

P/E Ratio

9890.HK trades at 4.77 times earnings. This suggests potential undervaluation.

4.77

PEG Ratio

When adjusting for growth, 9890.HK's PEG of 0.11 indicates potential undervaluation.

0.11

Price to Book

The market values Tanwan Inc at 1.68 times its book value. This may indicate undervaluation.

1.68

EV/EBITDA

Enterprise value stands at 53.37 times EBITDA. This signals the market has high growth expectations.

53.37

How Well Does 9890.HK Make Money?

Net Profit Margin

For every $100 in sales, Tanwan Inc keeps $35.70 as profit after all expenses.

35.70%

Operating Margin

Core operations generate 2.71 in profit for every $100 in revenue, before interest and taxes.

2.71%

ROE

Management delivers $39.89 in profit for every $100 of shareholder equity.

39.89%

ROA

Tanwan Inc generates $19.93 in profit for every $100 in assets, demonstrating efficient asset deployment.

19.93%

Following the Money - Real Cash Generation

Operating Cash Flow

Tanwan Inc generates limited operating cash flow of $-1.11B, signaling weaker underlying cash strength.

$-1.11B

Free Cash Flow

Tanwan Inc generates weak or negative free cash flow of $-1.13B, restricting financial flexibility.

$-1.13B

FCF Per Share

Each share generates $-2.17 in free cash annually.

$-2.17

FCF Yield

9890.HK converts -16.88% of its market value into free cash.

-16.88%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

4.77

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

0.11

vs 25 benchmark

P/B Ratio

Price to book value ratio

1.68

vs 25 benchmark

P/S Ratio

Price to sales ratio

1.67

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.02

vs 25 benchmark

Current Ratio

Current assets to current liabilities

1.87

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.40

vs 25 benchmark

ROA

Return on assets percentage

0.20

vs 25 benchmark

ROCE

Return on capital employed

0.02

vs 25 benchmark

How 9890.HK Stacks Against Its Sector Peers

Metric9890.HK ValueSector AveragePerformance
P/E Ratio4.7733.98 Better (Cheaper)
ROE39.89%1007.00% Weak
Net Margin35.70%-47797.00% (disorted) Strong
Debt/Equity0.020.44 Strong (Low Leverage)
Current Ratio1.875.66 Neutral
ROA19.93%-287350.00% (disorted) Strong

9890.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Tanwan Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

99.11%

Industry Style: Growth, Innovation, High Beta

High Growth

EPS CAGR

99.71%

Industry Style: Growth, Innovation, High Beta

High Growth

FCF CAGR

-579.70%

Industry Style: Growth, Innovation, High Beta

Declining

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