Hua Hong Semiconductor Limited Fundamental Analysis
Hua Hong Semiconductor Limited (HHUSF) shows weak financial fundamentals with a PE ratio of 489.61, profit margin of 2.72%, and ROE of 1.09%. The company generates $2.8B in annual revenue with strong year-over-year growth of 19.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HHUSF's fundamental strength across five key dimensions:
Efficiency Score
WeakHHUSF struggles to generate sufficient returns from assets.
Valuation Score
WeakHHUSF trades at a premium to fair value.
Growth Score
ModerateHHUSF shows steady but slowing expansion.
Financial Health Score
ExcellentHHUSF maintains a strong and stable balance sheet.
Profitability Score
WeakHHUSF struggles to sustain strong margins.
Key Financial Metrics
Is HHUSF Expensive or Cheap?
P/E Ratio
HHUSF trades at 489.61 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HHUSF's PEG of 3.87 indicates potential overvaluation.
Price to Book
The market values Hua Hong Semiconductor Limited at 5.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 119.19 times EBITDA. This signals the market has high growth expectations.
How Well Does HHUSF Make Money?
Net Profit Margin
For every $100 in sales, Hua Hong Semiconductor Limited keeps $2.72 as profit after all expenses.
Operating Margin
Core operations generate -6.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.09 in profit for every $100 of shareholder equity.
ROA
Hua Hong Semiconductor Limited generates $0.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hua Hong Semiconductor Limited generates strong operating cash flow of $951.72M, reflecting robust business health.
Free Cash Flow
Hua Hong Semiconductor Limited generates weak or negative free cash flow of $-1.57B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.81 in free cash annually.
FCF Yield
HHUSF converts -3.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
489.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How HHUSF Stacks Against Its Sector Peers
| Metric | HHUSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 489.61 | 37.32 | Worse (Expensive) |
| ROE | 1.09% | 993.00% | Weak |
| Net Margin | 2.72% | 5975589423.00% | Weak |
| Debt/Equity | 0.69 | 0.41 | Weak (High Leverage) |
| Current Ratio | 3.44 | 116.24 | Strong Liquidity |
| ROA | 0.47% | -297552.00% (disorted) | Weak |
HHUSF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hua Hong Semiconductor Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
89.20%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-60.07%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
116.66%
Industry Style: Growth, Innovation, High Beta
High Growth