The Hongkong and Shanghai Hotels, Limited
The Hongkong and Shanghai Hotels, Limited Fundamental Analysis
The Hongkong and Shanghai Hotels, Limited (HKSHF) shows moderate financial fundamentals with a PE ratio of -13.31, profit margin of -8.75%, and ROE of -2.21%. The company generates $9.0B in annual revenue with strong year-over-year growth of 26.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HKSHF's fundamental strength across five key dimensions:
Efficiency Score
WeakHKSHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHKSHF trades at attractive valuation levels.
Growth Score
ModerateHKSHF shows steady but slowing expansion.
Financial Health Score
ModerateHKSHF shows balanced financial health with some risks.
Profitability Score
WeakHKSHF struggles to sustain strong margins.
Key Financial Metrics
Is HKSHF Expensive or Cheap?
P/E Ratio
HKSHF trades at -13.31 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HKSHF's PEG of -0.10 indicates potential undervaluation.
Price to Book
The market values The Hongkong and Shanghai Hotels, Limited at 0.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.34 times EBITDA. This is generally considered low.
How Well Does HKSHF Make Money?
Net Profit Margin
For every $100 in sales, The Hongkong and Shanghai Hotels, Limited keeps $-8.75 as profit after all expenses.
Operating Margin
Core operations generate 9.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.21 in profit for every $100 of shareholder equity.
ROA
The Hongkong and Shanghai Hotels, Limited generates $-1.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Hongkong and Shanghai Hotels, Limited generates strong operating cash flow of $3.15B, reflecting robust business health.
Free Cash Flow
The Hongkong and Shanghai Hotels, Limited generates strong free cash flow of $1.97B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.18 in free cash annually.
FCF Yield
HKSHF converts 18.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-13.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How HKSHF Stacks Against Its Sector Peers
| Metric | HKSHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -13.31 | 23.49 | Better (Cheaper) |
| ROE | -2.21% | 1160.00% | Weak |
| Net Margin | -8.75% | 672.00% | Weak |
| Debt/Equity | 0.49 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 0.31 | 2.56 | Weak Liquidity |
| ROA | -1.40% | -8277.00% (disorted) | Weak |
HKSHF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Hongkong and Shanghai Hotels, Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.38%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-286.75%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
386.49%
Industry Style: Cyclical, Growth, Discretionary
High Growth