HK Electric Investments and HK Electric Investments Limited
HK Electric Investments and HK Electric Investments Limited Fundamental Analysis
HK Electric Investments and HK Electric Investments Limited (HKCVF) shows moderate financial fundamentals with a PE ratio of 17.07, profit margin of 22.42%, and ROE of 5.56%. The company generates $12.1B in annual revenue with weak year-over-year growth of 0.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HKCVF's fundamental strength across five key dimensions:
Efficiency Score
WeakHKCVF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHKCVF trades at attractive valuation levels.
Growth Score
WeakHKCVF faces weak or negative growth trends.
Financial Health Score
WeakHKCVF carries high financial risk with limited liquidity.
Profitability Score
ModerateHKCVF maintains healthy but balanced margins.
Key Financial Metrics
Is HKCVF Expensive or Cheap?
P/E Ratio
HKCVF trades at 17.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HKCVF's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values HK Electric Investments and HK Electric Investments Limited at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.47 times EBITDA. This is generally considered low.
How Well Does HKCVF Make Money?
Net Profit Margin
For every $100 in sales, HK Electric Investments and HK Electric Investments Limited keeps $22.42 as profit after all expenses.
Operating Margin
Core operations generate 41.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.56 in profit for every $100 of shareholder equity.
ROA
HK Electric Investments and HK Electric Investments Limited generates $2.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HK Electric Investments and HK Electric Investments Limited generates strong operating cash flow of $5.95B, reflecting robust business health.
Free Cash Flow
HK Electric Investments and HK Electric Investments Limited generates strong free cash flow of $2.31B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.26 in free cash annually.
FCF Yield
HKCVF converts 4.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How HKCVF Stacks Against Its Sector Peers
| Metric | HKCVF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.07 | 20.28 | Better (Cheaper) |
| ROE | 5.56% | 920.00% | Weak |
| Net Margin | 22.42% | 736.00% | Weak |
| Debt/Equity | 1.03 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 0.09 | 1.44 | Weak Liquidity |
| ROA | 2.30% | -6170.00% (disorted) | Weak |
HKCVF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HK Electric Investments and HK Electric Investments Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.71%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
12.66%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-100.00%
Industry Style: Defensive, Dividend, Income
Declining