Hong Leong Asia Ltd. Fundamental Analysis (SES: H22.SI)
Hong Leong Asia Ltd. (SES: H22.SI) shows moderate financial fundamentals with a PE ratio of 14.93, profit margin of 2.71%, and ROE of 14.16%. The company generates $5.7B in annual revenue with strong year-over-year growth of 26.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.5/100 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 H22.SI's fundamental strength across five key dimensions:
Efficiency Score
WeakH22.SI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentH22.SI trades at attractive valuation levels.
Growth Score
ExcellentH22.SI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentH22.SI maintains a strong and stable balance sheet.
Profitability Score
WeakH22.SI struggles to sustain strong margins.
Key Financial Metrics
Is H22.SI Expensive or Cheap?
P/E Ratio
H22.SI trades at 14.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, H22.SI's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Hong Leong Asia Ltd. at 2.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.11 times EBITDA. This is generally considered low.
How Well Does H22.SI Make Money?
Net Profit Margin
For every $100 in sales, Hong Leong Asia Ltd. keeps $2.71 as profit after all expenses.
Operating Margin
Core operations generate 5.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.16 in profit for every $100 of shareholder equity.
ROA
Hong Leong Asia Ltd. generates $2.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hong Leong Asia Ltd. generates limited operating cash flow of $494.95M, signaling weaker underlying cash strength.
Free Cash Flow
Hong Leong Asia Ltd. produces free cash flow of $368.71M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.46 in free cash annually.
FCF Yield
H22.SI converts 15.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How H22.SI Stacks Against Its Sector Peers
| Metric | H22.SI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.93 | 25.50 | Better (Cheaper) |
| ROE | 14.16% | 964.00% | Weak |
| Net Margin | 2.71% | -4901.00% (disorted) | Weak |
| Debt/Equity | 0.74 | 0.60 | Weak (High Leverage) |
| Current Ratio | 1.40 | 2.34 | Neutral |
| ROA | 2.26% | 322.00% | Weak |
H22.SI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hong Leong Asia Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.21%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
141.26%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
105.04%
Industry Style: Cyclical, Growth, Discretionary
High Growth