AAC Technologies Holdings Inc.
AAC Technologies Holdings Inc. Fundamental Analysis
AAC Technologies Holdings Inc. (AACAY) shows moderate financial fundamentals with a PE ratio of 14.88, profit margin of 7.88%, and ROE of 10.41%. The company generates $32.4B in annual revenue with strong year-over-year growth of 33.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.1/100 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 AACAY's fundamental strength across five key dimensions:
Efficiency Score
WeakAACAY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAACAY trades at attractive valuation levels.
Growth Score
ModerateAACAY shows steady but slowing expansion.
Financial Health Score
ExcellentAACAY maintains a strong and stable balance sheet.
Profitability Score
WeakAACAY struggles to sustain strong margins.
Key Financial Metrics
Is AACAY Expensive or Cheap?
P/E Ratio
AACAY trades at 14.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AACAY's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values AAC Technologies Holdings Inc. at 1.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.51 times EBITDA. This is generally considered low.
How Well Does AACAY Make Money?
Net Profit Margin
For every $100 in sales, AAC Technologies Holdings Inc. keeps $7.88 as profit after all expenses.
Operating Margin
Core operations generate 8.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.41 in profit for every $100 of shareholder equity.
ROA
AAC Technologies Holdings Inc. generates $5.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AAC Technologies Holdings Inc. produces operating cash flow of $4.29B, showing steady but balanced cash generation.
Free Cash Flow
AAC Technologies Holdings Inc. produces free cash flow of $2.21B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.86 in free cash annually.
FCF Yield
AACAY converts 5.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How AACAY Stacks Against Its Sector Peers
| Metric | AACAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.88 | 34.82 | Better (Cheaper) |
| ROE | 10.41% | 1059.00% | Weak |
| Net Margin | 7.88% | 5902863592.00% | Weak |
| Debt/Equity | 0.44 | 0.45 | Neutral |
| Current Ratio | 1.49 | 4.99 | Neutral |
| ROA | 5.06% | -295249.00% (disorted) | Weak |
AACAY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AAC Technologies Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.43%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-16.69%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
39.46%
Industry Style: Growth, Innovation, High Beta
High Growth