HiTech Group Australia Limited
HiTech Group Australia Limited Fundamental Analysis
HiTech Group Australia Limited (HIT.AX) shows moderate financial fundamentals with a PE ratio of 7.35, profit margin of 7.46%, and ROE of 43.16%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 6.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.3/100 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 HIT.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHIT.AX demonstrates superior asset utilization.
Valuation Score
ExcellentHIT.AX trades at attractive valuation levels.
Growth Score
ModerateHIT.AX shows steady but slowing expansion.
Financial Health Score
ExcellentHIT.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateHIT.AX maintains healthy but balanced margins.
Key Financial Metrics
Is HIT.AX Expensive or Cheap?
P/E Ratio
HIT.AX trades at 7.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HIT.AX's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values HiTech Group Australia Limited at 3.18 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.11 times EBITDA. This is generally considered low.
How Well Does HIT.AX Make Money?
Net Profit Margin
For every $100 in sales, HiTech Group Australia Limited keeps $7.46 as profit after all expenses.
Operating Margin
Core operations generate 11.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $43.16 in profit for every $100 of shareholder equity.
ROA
HiTech Group Australia Limited generates $28.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HiTech Group Australia Limited generates limited operating cash flow of $5.49M, signaling weaker underlying cash strength.
Free Cash Flow
HiTech Group Australia Limited produces free cash flow of $5.47M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
HIT.AX converts 14.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.43
vs 25 benchmark
ROA
Return on assets percentage
0.28
vs 25 benchmark
ROCE
Return on capital employed
0.64
vs 25 benchmark
How HIT.AX Stacks Against Its Sector Peers
| Metric | HIT.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.35 | 26.04 | Better (Cheaper) |
| ROE | 43.16% | 1287.00% | Weak |
| Net Margin | 7.46% | -33418.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 2.91 | 10.38 | Strong Liquidity |
| ROA | 28.04% | -1484956.00% (disorted) | Strong |
HIT.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HiTech Group Australia Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.53%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
72.00%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-57.88%
Industry Style: Cyclical, Value, Infrastructure
Declining