Hon Hai Precision Industry Co., Ltd.
Hon Hai Precision Industry Co., Ltd. Fundamental Analysis
Hon Hai Precision Industry Co., Ltd. (HNHPF) shows moderate financial fundamentals with a PE ratio of 13.96, profit margin of 2.33%, and ROE of 11.67%. The company generates $8105.9B in annual revenue with strong year-over-year growth of 11.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.0/100 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 HNHPF's fundamental strength across five key dimensions:
Efficiency Score
WeakHNHPF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHNHPF trades at attractive valuation levels.
Growth Score
ModerateHNHPF shows steady but slowing expansion.
Financial Health Score
ExcellentHNHPF maintains a strong and stable balance sheet.
Profitability Score
WeakHNHPF struggles to sustain strong margins.
Key Financial Metrics
Is HNHPF Expensive or Cheap?
P/E Ratio
HNHPF trades at 13.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HNHPF's PEG of -0.75 indicates potential undervaluation.
Price to Book
The market values Hon Hai Precision Industry Co., Ltd. at 1.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.63 times EBITDA. This is generally considered low.
How Well Does HNHPF Make Money?
Net Profit Margin
For every $100 in sales, Hon Hai Precision Industry Co., Ltd. keeps $2.33 as profit after all expenses.
Operating Margin
Core operations generate 3.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.67 in profit for every $100 of shareholder equity.
ROA
Hon Hai Precision Industry Co., Ltd. generates $3.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hon Hai Precision Industry Co., Ltd. generates limited operating cash flow of $231.22B, signaling weaker underlying cash strength.
Free Cash Flow
Hon Hai Precision Industry Co., Ltd. generates weak or negative free cash flow of $56.82B, restricting financial flexibility.
FCF Per Share
Each share generates $8.14 in free cash annually.
FCF Yield
HNHPF converts 2.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How HNHPF Stacks Against Its Sector Peers
| Metric | HNHPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.96 | 33.61 | Better (Cheaper) |
| ROE | 11.67% | 1020.00% | Weak |
| Net Margin | 2.33% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.73 | 0.45 | Weak (High Leverage) |
| Current Ratio | 1.46 | 5.65 | Neutral |
| ROA | 3.73% | -291484.00% (disorted) | Weak |
HNHPF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hon Hai Precision Industry Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.28%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
32.31%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-33.12%
Industry Style: Growth, Innovation, High Beta
Declining