Hongkong Land Holdings Limited
Hongkong Land Holdings Limited Fundamental Analysis
Hongkong Land Holdings Limited (HNGKY) shows moderate financial fundamentals with a PE ratio of 15.06, profit margin of 85.73%, and ROE of 4.17%. The company generates $0.3B in annual revenue with weak year-over-year growth of -25.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HNGKY's fundamental strength across five key dimensions:
Efficiency Score
WeakHNGKY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHNGKY trades at attractive valuation levels.
Growth Score
WeakHNGKY faces weak or negative growth trends.
Financial Health Score
ExcellentHNGKY maintains a strong and stable balance sheet.
Profitability Score
ModerateHNGKY maintains healthy but balanced margins.
Key Financial Metrics
Is HNGKY Expensive or Cheap?
P/E Ratio
HNGKY trades at 15.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HNGKY's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Hongkong Land Holdings Limited at 0.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.72 times EBITDA. This is generally considered low.
How Well Does HNGKY Make Money?
Net Profit Margin
For every $100 in sales, Hongkong Land Holdings Limited keeps $85.73 as profit after all expenses.
Operating Margin
Core operations generate 16.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.17 in profit for every $100 of shareholder equity.
ROA
Hongkong Land Holdings Limited generates $3.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hongkong Land Holdings Limited generates strong operating cash flow of $117.26M, reflecting robust business health.
Free Cash Flow
Hongkong Land Holdings Limited generates strong free cash flow of $84.32M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.19 in free cash annually.
FCF Yield
HNGKY converts 2.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How HNGKY Stacks Against Its Sector Peers
| Metric | HNGKY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.06 | 23.18 | Better (Cheaper) |
| ROE | 4.17% | 709.00% | Weak |
| Net Margin | 85.73% | -21241.00% (disorted) | Strong |
| Debt/Equity | 0.20 | -21.97 (disorted) | Distorted |
| Current Ratio | 9.67 | 26.77 | Strong Liquidity |
| ROA | 3.15% | 176.00% | Weak |
HNGKY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hongkong Land Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-24.11%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
150.92%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-36.34%
Industry Style: Income, Inflation Hedge, REIT
Declining