Hot Chili Limited Fundamental Analysis (ASX: HCH.AX)
Hot Chili Limited (ASX: HCH.AX) shows weak financial fundamentals with a PE ratio of -27.12, profit margin of 0.00%, and ROE of -4.15%. The company generates N/A in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HCH.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakHCH.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHCH.AX trades at attractive valuation levels.
Growth Score
WeakHCH.AX faces weak or negative growth trends.
Financial Health Score
ExcellentHCH.AX maintains a strong and stable balance sheet.
Profitability Score
WeakHCH.AX struggles to sustain strong margins.
Key Financial Metrics
Is HCH.AX Expensive or Cheap?
P/E Ratio
HCH.AX trades at -27.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HCH.AX's PEG of -1.18 indicates potential undervaluation.
Price to Book
The market values Hot Chili Limited at 1.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -31.35 times EBITDA. This is generally considered low.
How Well Does HCH.AX Make Money?
Net Profit Margin
For every $100 in sales, Hot Chili Limited keeps $0.00 as profit after all expenses.
Operating Margin
Core operations generate 0.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.15 in profit for every $100 of shareholder equity.
ROA
Hot Chili Limited generates $-3.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $-0.06 in free cash annually.
FCF Yield
HCH.AX converts -4.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-27.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.04
vs 25 benchmark
How HCH.AX Stacks Against Its Sector Peers
| Metric | HCH.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -27.12 | 25.21 | Better (Cheaper) |
| ROE | -4.15% | 1254.00% | Weak |
| Net Margin | 0.00% | 450.00% | Weak |
| Debt/Equity | 0.00 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 3.63 | 3.14 | Strong Liquidity |
| ROA | -3.48% | 2649.00% | Weak |
HCH.AX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hot Chili Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.87%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-108.72%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
41.22%
Industry Style: Cyclical, Commodity, Value
High Growth