The Foschini Group Limited
The Foschini Group Limited Fundamental Analysis
The Foschini Group Limited (FHNGY) shows moderate financial fundamentals with a PE ratio of 8.39, profit margin of 4.58%, and ROE of 11.40%. The company generates $63.7B in annual revenue with moderate year-over-year growth of 8.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.0/100 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 FHNGY's fundamental strength across five key dimensions:
Efficiency Score
WeakFHNGY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFHNGY trades at attractive valuation levels.
Growth Score
ModerateFHNGY shows steady but slowing expansion.
Financial Health Score
ModerateFHNGY shows balanced financial health with some risks.
Profitability Score
WeakFHNGY struggles to sustain strong margins.
Key Financial Metrics
Is FHNGY Expensive or Cheap?
P/E Ratio
FHNGY trades at 8.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FHNGY's PEG of -0.06 indicates potential undervaluation.
Price to Book
The market values The Foschini Group Limited at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.08 times EBITDA. This is generally considered low.
How Well Does FHNGY Make Money?
Net Profit Margin
For every $100 in sales, The Foschini Group Limited keeps $4.58 as profit after all expenses.
Operating Margin
Core operations generate 7.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.40 in profit for every $100 of shareholder equity.
ROA
The Foschini Group Limited generates $4.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Foschini Group Limited produces operating cash flow of $7.43B, showing steady but balanced cash generation.
Free Cash Flow
The Foschini Group Limited produces free cash flow of $5.38B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $16.65 in free cash annually.
FCF Yield
FHNGY converts 21.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How FHNGY Stacks Against Its Sector Peers
| Metric | FHNGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.39 | 24.85 | Better (Cheaper) |
| ROE | 11.40% | 1165.00% | Weak |
| Net Margin | 4.58% | 749.00% | Weak |
| Debt/Equity | 1.04 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.60 | 9.23 | Neutral |
| ROA | 4.73% | 1271.00% | Weak |
FHNGY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Foschini Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-6.55%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
536.01%
Industry Style: Cyclical, Growth, Discretionary
High Growth