Hafnia Limited Fundamental Analysis
Hafnia Limited (HAFN) shows moderate financial fundamentals with a PE ratio of 7.95, profit margin of 18.97%, and ROE of 19.20%. The company generates $2.4B in annual revenue with weak year-over-year growth of -18.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HAFN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHAFN demonstrates superior asset utilization.
Valuation Score
ExcellentHAFN trades at attractive valuation levels.
Growth Score
WeakHAFN faces weak or negative growth trends.
Financial Health Score
ExcellentHAFN maintains a strong and stable balance sheet.
Profitability Score
ExcellentHAFN achieves industry-leading margins.
Key Financial Metrics
Is HAFN Expensive or Cheap?
P/E Ratio
HAFN trades at 7.95 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HAFN's PEG of -0.32 indicates potential undervaluation.
Price to Book
The market values Hafnia Limited at 1.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.06 times EBITDA. This is generally considered low.
How Well Does HAFN Make Money?
Net Profit Margin
For every $100 in sales, Hafnia Limited keeps $18.97 as profit after all expenses.
Operating Margin
Core operations generate 17.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.20 in profit for every $100 of shareholder equity.
ROA
Hafnia Limited generates $11.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hafnia Limited produces operating cash flow of $581.15M, showing steady but balanced cash generation.
Free Cash Flow
Hafnia Limited generates strong free cash flow of $441.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.88 in free cash annually.
FCF Yield
HAFN converts 12.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How HAFN Stacks Against Its Sector Peers
| Metric | HAFN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.95 | 25.90 | Better (Cheaper) |
| ROE | 19.20% | 1248.00% | Weak |
| Net Margin | 18.97% | -35020.00% (disorted) | Strong |
| Debt/Equity | 0.40 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.60 | 9.99 | Neutral |
| ROA | 11.32% | -1489331.00% (disorted) | Strong |
HAFN 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 Hafnia Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
96.54%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
71.89%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
3.15%
Industry Style: Cyclical, Value, Infrastructure
Growing