IHS Holding Limited Fundamental Analysis (NYSE: IHS)
IHS Holding Limited Fundamental Analysis (NYSE: IHS)
IHS Holding Limited (NYSE: IHS) shows weak financial fundamentals with a PE ratio of 19.68, profit margin of 9.15%, and ROE of -74.58%. The company generates $1.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 195.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze IHS's fundamental strength across five key dimensions:
Efficiency Score
WeakIHS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIHS trades at attractive valuation levels.
Growth Score
ModerateIHS shows steady but slowing expansion.
Financial Health Score
ExcellentIHS maintains a strong and stable balance sheet.
Profitability Score
WeakIHS struggles to sustain strong margins.
Key Financial Metrics
Is IHS Expensive or Cheap?
P/E Ratio
IHS trades at 19.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IHS's PEG of 0.84 indicates potential undervaluation.
Price to Book
The market values IHS Holding Limited at -15.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.34 times EBITDA. This is generally considered low.
How Well Does IHS Make Money?
Net Profit Margin
For every $100 in sales, IHS Holding Limited keeps $9.15 as profit after all expenses.
Operating Margin
Core operations generate 33.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-74.58 in profit for every $100 of shareholder equity.
ROA
IHS Holding Limited generates $3.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IHS Holding Limited generates strong operating cash flow of $773.78M, reflecting robust business health.
Free Cash Flow
IHS Holding Limited generates strong free cash flow of $533.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.59 in free cash annually.
FCF Yield
IHS converts 19.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
-15.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-19.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.75
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How IHS Stacks Against Its Sector Peers
| Metric | IHS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.68 | 19.63 | Neutral |
| ROE | -74.58% | 605.00% | Weak |
| Net Margin | 9.15% | 492.00% | Weak |
| Debt/Equity | -19.21 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.93 | 1.90 | Neutral |
| ROA | 3.26% | 301.00% | Weak |
IHS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IHS Holding Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming