Hengan International Group Company Limited
Hengan International Group Company Limited Fundamental Analysis
Hengan International Group Company Limited (HEGIF) shows moderate financial fundamentals with a PE ratio of 12.46, profit margin of 9.99%, and ROE of 10.69%. The company generates $23.1B in annual revenue with weak year-over-year growth of -4.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HEGIF's fundamental strength across five key dimensions:
Efficiency Score
WeakHEGIF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHEGIF trades at attractive valuation levels.
Growth Score
WeakHEGIF faces weak or negative growth trends.
Financial Health Score
ExcellentHEGIF maintains a strong and stable balance sheet.
Profitability Score
WeakHEGIF struggles to sustain strong margins.
Key Financial Metrics
Is HEGIF Expensive or Cheap?
P/E Ratio
HEGIF trades at 12.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HEGIF's PEG of -1.82 indicates potential undervaluation.
Price to Book
The market values Hengan International Group Company Limited at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.06 times EBITDA. This is generally considered low.
How Well Does HEGIF Make Money?
Net Profit Margin
For every $100 in sales, Hengan International Group Company Limited keeps $9.99 as profit after all expenses.
Operating Margin
Core operations generate 14.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.69 in profit for every $100 of shareholder equity.
ROA
Hengan International Group Company Limited generates $5.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hengan International Group Company Limited produces operating cash flow of $3.20B, showing steady but balanced cash generation.
Free Cash Flow
Hengan International Group Company Limited produces free cash flow of $1.94B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.67 in free cash annually.
FCF Yield
HEGIF converts 6.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
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
0.15
vs 25 benchmark
How HEGIF Stacks Against Its Sector Peers
| Metric | HEGIF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.46 | 22.56 | Better (Cheaper) |
| ROE | 10.69% | 1288.00% | Weak |
| Net Margin | 9.99% | -5952.00% (disorted) | Weak |
| Debt/Equity | 0.78 | 0.81 | Neutral |
| Current Ratio | 1.16 | 2.41 | Neutral |
| ROA | 5.36% | -197304.00% (disorted) | Weak |
HEGIF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hengan International Group Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.08%
Industry Style: Defensive, Dividend, Low Volatility
GrowingEPS CAGR
-38.67%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-6.22%
Industry Style: Defensive, Dividend, Low Volatility
Declining