John Hancock Financial Opportunities Fund Fundamental Analysis (NYSE: BTO)
John Hancock Financial Opportunities Fund Fundamental Analysis (NYSE: BTO)
John Hancock Financial Opportunities Fund (NYSE: BTO) shows moderate financial fundamentals with a PE ratio of 4.27, profit margin of 2.69%, and ROE of 24.26%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.3/100 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 BTO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBTO demonstrates superior asset utilization.
Valuation Score
ExcellentBTO trades at attractive valuation levels.
Growth Score
ModerateBTO shows steady but slowing expansion.
Financial Health Score
ModerateBTO shows balanced financial health with some risks.
Profitability Score
ModerateBTO maintains healthy but balanced margins.
Key Financial Metrics
Is BTO Expensive or Cheap?
P/E Ratio
BTO trades at 4.27 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BTO's PEG of 0.25 indicates potential undervaluation.
Price to Book
The market values John Hancock Financial Opportunities Fund at 0.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.45 times EBITDA. This is generally considered low.
How Well Does BTO Make Money?
Net Profit Margin
For every $100 in sales, John Hancock Financial Opportunities Fund keeps $2.69 as profit after all expenses.
Operating Margin
Core operations generate 2.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.26 in profit for every $100 of shareholder equity.
ROA
John Hancock Financial Opportunities Fund generates $19.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
John Hancock Financial Opportunities Fund produces operating cash flow of $16.98M, showing steady but balanced cash generation.
Free Cash Flow
John Hancock Financial Opportunities Fund generates strong free cash flow of $16.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.86 in free cash annually.
FCF Yield
BTO converts 2.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How BTO Stacks Against Its Sector Peers
| Metric | BTO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.27 | 21.07 | Better (Cheaper) |
| ROE | 24.26% | 647.00% | Weak |
| Net Margin | 269.24% | -1593.00% (disorted) | Strong |
| Debt/Equity | 0.16 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 911.99 | Weak Liquidity |
| ROA | 19.70% | -578.00% (disorted) | Strong |
BTO 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 John Hancock Financial Opportunities Fund's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical