Hong Kong Exchanges and Clearing Limited
Hong Kong Exchanges and Clearing Limited Fundamental Analysis
Hong Kong Exchanges and Clearing Limited (HKXCF) shows strong financial fundamentals with a PE ratio of 3.42, profit margin of 65.45%, and ROE of 33.64%. The company generates $225.9B in annual revenue with strong year-over-year growth of 68.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HKXCF's fundamental strength across five key dimensions:
Efficiency Score
WeakHKXCF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHKXCF trades at attractive valuation levels.
Growth Score
ExcellentHKXCF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHKXCF maintains a strong and stable balance sheet.
Profitability Score
ModerateHKXCF maintains healthy but balanced margins.
Key Financial Metrics
Is HKXCF Expensive or Cheap?
P/E Ratio
HKXCF trades at 3.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HKXCF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Hong Kong Exchanges and Clearing Limited at 1.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 25.71 times EBITDA. This signals the market has high growth expectations.
How Well Does HKXCF Make Money?
Net Profit Margin
For every $100 in sales, Hong Kong Exchanges and Clearing Limited keeps $65.45 as profit after all expenses.
Operating Margin
Core operations generate 78.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.64 in profit for every $100 of shareholder equity.
ROA
Hong Kong Exchanges and Clearing Limited generates $3.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hong Kong Exchanges and Clearing Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Hong Kong Exchanges and Clearing Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HKXCF converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
726.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How HKXCF Stacks Against Its Sector Peers
| Metric | HKXCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.42 | 18.88 | Better (Cheaper) |
| ROE | 33.64% | 801.00% | Weak |
| Net Margin | 65.45% | 2213.00% | Weak |
| Debt/Equity | 0.02 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 726.80 | 615.97 | Strong Liquidity |
| ROA | 3.34% | -19854.00% (disorted) | Weak |
HKXCF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hong Kong Exchanges and Clearing Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.06%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
54.18%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
53.55%
Industry Style: Value, Dividend, Cyclical
High Growth