Hotel Property Investments
Hotel Property Investments Fundamental Analysis
Hotel Property Investments (HPI.AX) shows moderate financial fundamentals with a PE ratio of 20.29, profit margin of 43.78%, and ROE of 4.61%. The company generates $0.1B in annual revenue with weak year-over-year growth of 2.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HPI.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakHPI.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHPI.AX trades at attractive valuation levels.
Growth Score
WeakHPI.AX faces weak or negative growth trends.
Financial Health Score
ExcellentHPI.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateHPI.AX maintains healthy but balanced margins.
Key Financial Metrics
Is HPI.AX Expensive or Cheap?
P/E Ratio
HPI.AX trades at 20.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HPI.AX's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values Hotel Property Investments at 0.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.11 times EBITDA. This is generally considered low.
How Well Does HPI.AX Make Money?
Net Profit Margin
For every $100 in sales, Hotel Property Investments keeps $43.78 as profit after all expenses.
Operating Margin
Core operations generate 78.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.61 in profit for every $100 of shareholder equity.
ROA
Hotel Property Investments generates $2.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hotel Property Investments generates strong operating cash flow of $67.59M, reflecting robust business health.
Free Cash Flow
Hotel Property Investments generates strong free cash flow of $67.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.34 in free cash annually.
FCF Yield
HPI.AX converts 9.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How HPI.AX Stacks Against Its Sector Peers
| Metric | HPI.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.29 | 22.50 | Neutral |
| ROE | 4.61% | 700.00% | Weak |
| Net Margin | 43.78% | -37372.00% (disorted) | Strong |
| Debt/Equity | 0.61 | -20.81 (disorted) | Distorted |
| Current Ratio | 2.33 | 1949.79 | Strong Liquidity |
| ROA | 2.79% | -1322.00% (disorted) | Weak |
HPI.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hotel Property Investments's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.45%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-45.22%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
22.25%
Industry Style: Income, Inflation Hedge, REIT
High Growth