Hong Kong Exchanges and Clearing Limited
Hong Kong Exchanges and Clearing Limited Fundamental Analysis
Hong Kong Exchanges and Clearing Limited (HKXCY) shows strong financial fundamentals with a PE ratio of 29.28, profit margin of 67.98%, and ROE of 32.08%. The company generates $26.1B 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 84.7/100 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 HKXCY's fundamental strength across five key dimensions:
Efficiency Score
WeakHKXCY struggles to generate sufficient returns from assets.
Valuation Score
ModerateHKXCY shows balanced valuation metrics.
Growth Score
ExcellentHKXCY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHKXCY maintains a strong and stable balance sheet.
Profitability Score
ModerateHKXCY maintains healthy but balanced margins.
Key Financial Metrics
Is HKXCY Expensive or Cheap?
P/E Ratio
HKXCY trades at 29.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HKXCY's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Hong Kong Exchanges and Clearing Limited at 8.93 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.13 times EBITDA. This signals the market has high growth expectations.
How Well Does HKXCY Make Money?
Net Profit Margin
For every $100 in sales, Hong Kong Exchanges and Clearing Limited keeps $67.98 as profit after all expenses.
Operating Margin
Core operations generate 81.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.08 in profit for every $100 of shareholder equity.
ROA
Hong Kong Exchanges and Clearing Limited generates $3.05 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
HKXCY converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
19.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
694.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How HKXCY Stacks Against Its Sector Peers
| Metric | HKXCY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.28 | 19.02 | Worse (Expensive) |
| ROE | 32.08% | 818.00% | Weak |
| Net Margin | 67.98% | 1593.00% | Weak |
| Debt/Equity | 0.03 | 0.99 | Strong (Low Leverage) |
| Current Ratio | 694.10 | 669.82 | Strong Liquidity |
| ROA | 3.05% | -24701.00% (disorted) | Weak |
HKXCY outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
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