Newborn Town Inc.
Newborn Town Inc. Fundamental Analysis
Newborn Town Inc. (9911.HK) shows strong financial fundamentals with a PE ratio of 9.57, profit margin of 13.58%, and ROE of 41.82%. The company generates $7.6B in annual revenue with strong year-over-year growth of 53.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.5/100 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 9911.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent9911.HK demonstrates superior asset utilization.
Valuation Score
Excellent9911.HK trades at attractive valuation levels.
Growth Score
Moderate9911.HK shows steady but slowing expansion.
Financial Health Score
Excellent9911.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate9911.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 9911.HK Expensive or Cheap?
P/E Ratio
9911.HK trades at 9.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 9911.HK's PEG of 0.55 indicates potential undervaluation.
Price to Book
The market values Newborn Town Inc. at 3.64 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.86 times EBITDA. This signals the market has high growth expectations.
How Well Does 9911.HK Make Money?
Net Profit Margin
For every $100 in sales, Newborn Town Inc. keeps $13.58 as profit after all expenses.
Operating Margin
Core operations generate 13.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.82 in profit for every $100 of shareholder equity.
ROA
Newborn Town Inc. generates $21.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Newborn Town Inc. produces operating cash flow of $1.62B, showing steady but balanced cash generation.
Free Cash Flow
Newborn Town Inc. generates strong free cash flow of $1.60B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.13 in free cash annually.
FCF Yield
9911.HK converts 14.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How 9911.HK Stacks Against Its Sector Peers
| Metric | 9911.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.57 | 33.61 | Better (Cheaper) |
| ROE | 41.82% | 1020.00% | Weak |
| Net Margin | 13.58% | -56528.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 2.47 | 5.65 | Strong Liquidity |
| ROA | 21.09% | -291484.00% (disorted) | Strong |
9911.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 Newborn Town Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
859.23%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
415.42%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
344.70%
Industry Style: Growth, Innovation, High Beta
High Growth