The Hour Glass Limited
The Hour Glass Limited Fundamental Analysis
The Hour Glass Limited (AGS.SI) shows moderate financial fundamentals with a PE ratio of 10.69, profit margin of 12.11%, and ROE of 15.81%. The company generates $1.2B in annual revenue with weak year-over-year growth of 0.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.4/100 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 AGS.SI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAGS.SI demonstrates superior asset utilization.
Valuation Score
ExcellentAGS.SI trades at attractive valuation levels.
Growth Score
WeakAGS.SI faces weak or negative growth trends.
Financial Health Score
ExcellentAGS.SI maintains a strong and stable balance sheet.
Profitability Score
ModerateAGS.SI maintains healthy but balanced margins.
Key Financial Metrics
Is AGS.SI Expensive or Cheap?
P/E Ratio
AGS.SI trades at 10.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AGS.SI's PEG of 0.75 indicates potential undervaluation.
Price to Book
The market values The Hour Glass Limited at 1.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.81 times EBITDA. This is generally considered low.
How Well Does AGS.SI Make Money?
Net Profit Margin
For every $100 in sales, The Hour Glass Limited keeps $12.11 as profit after all expenses.
Operating Margin
Core operations generate 17.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.81 in profit for every $100 of shareholder equity.
ROA
The Hour Glass Limited generates $11.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Hour Glass Limited produces operating cash flow of $214.56M, showing steady but balanced cash generation.
Free Cash Flow
The Hour Glass Limited generates strong free cash flow of $191.24M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.30 in free cash annually.
FCF Yield
AGS.SI converts 11.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How AGS.SI Stacks Against Its Sector Peers
| Metric | AGS.SI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.69 | 23.78 | Better (Cheaper) |
| ROE | 15.81% | 1098.00% | Weak |
| Net Margin | 12.11% | -625.00% (disorted) | Strong |
| Debt/Equity | 0.25 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 2.67 | 2.64 | Strong Liquidity |
| ROA | 11.18% | -8075.00% (disorted) | Strong |
AGS.SI 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 The Hour Glass Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.55%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
138.99%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
114.38%
Industry Style: Cyclical, Growth, Discretionary
High Growth