Hang Lung Properties Limited
Hang Lung Properties Limited Fundamental Analysis
Hang Lung Properties Limited (HLPPY) shows moderate financial fundamentals with a PE ratio of 25.01, profit margin of 18.14%, and ROE of 1.35%. The company generates $10.2B in annual revenue with moderate year-over-year growth of 8.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.4/100 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 HLPPY's fundamental strength across five key dimensions:
Efficiency Score
WeakHLPPY struggles to generate sufficient returns from assets.
Valuation Score
ModerateHLPPY shows balanced valuation metrics.
Growth Score
ModerateHLPPY shows steady but slowing expansion.
Financial Health Score
ExcellentHLPPY maintains a strong and stable balance sheet.
Profitability Score
ExcellentHLPPY achieves industry-leading margins.
Key Financial Metrics
Is HLPPY Expensive or Cheap?
P/E Ratio
HLPPY trades at 25.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HLPPY's PEG of -0.23 indicates potential undervaluation.
Price to Book
The market values Hang Lung Properties Limited at 0.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.75 times EBITDA. This is generally considered low.
How Well Does HLPPY Make Money?
Net Profit Margin
For every $100 in sales, Hang Lung Properties Limited keeps $18.14 as profit after all expenses.
Operating Margin
Core operations generate 57.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.35 in profit for every $100 of shareholder equity.
ROA
Hang Lung Properties Limited generates $0.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hang Lung Properties Limited generates strong operating cash flow of $5.35B, reflecting robust business health.
Free Cash Flow
Hang Lung Properties Limited generates strong free cash flow of $5.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.15 in free cash annually.
FCF Yield
HLPPY converts 10.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How HLPPY Stacks Against Its Sector Peers
| Metric | HLPPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.01 | 23.18 | Neutral |
| ROE | 1.35% | 709.00% | Weak |
| Net Margin | 18.14% | -21241.00% (disorted) | Strong |
| Debt/Equity | 0.40 | -21.97 (disorted) | Distorted |
| Current Ratio | 1.83 | 26.77 | Neutral |
| ROA | 0.81% | 176.00% | Weak |
HLPPY outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hang Lung Properties Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.10%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-66.15%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-9.59%
Industry Style: Income, Inflation Hedge, REIT
Declining