Kingdee International Software Group Company Limited
Kingdee International Software Group Company Limited Fundamental Analysis
Kingdee International Software Group Company Limited (KGDEY) shows weak financial fundamentals with a PE ratio of 318.27, profit margin of 1.29%, and ROE of 1.11%. The company generates $6.9B in annual revenue with strong year-over-year growth of 10.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.9/100 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 KGDEY's fundamental strength across five key dimensions:
Efficiency Score
WeakKGDEY struggles to generate sufficient returns from assets.
Valuation Score
ModerateKGDEY shows balanced valuation metrics.
Growth Score
ExcellentKGDEY delivers strong and consistent growth momentum.
Financial Health Score
ModerateKGDEY shows balanced financial health with some risks.
Profitability Score
ModerateKGDEY maintains healthy but balanced margins.
Key Financial Metrics
Is KGDEY Expensive or Cheap?
P/E Ratio
KGDEY trades at 318.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KGDEY's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Kingdee International Software Group Company Limited at 3.46 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 78.44 times EBITDA. This signals the market has high growth expectations.
How Well Does KGDEY Make Money?
Net Profit Margin
For every $100 in sales, Kingdee International Software Group Company Limited keeps $1.29 as profit after all expenses.
Operating Margin
Core operations generate -1.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.11 in profit for every $100 of shareholder equity.
ROA
Kingdee International Software Group Company Limited generates $0.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kingdee International Software Group Company Limited produces operating cash flow of $1.10B, showing steady but balanced cash generation.
Free Cash Flow
Kingdee International Software Group Company Limited generates strong free cash flow of $967.64M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $27.35 in free cash annually.
FCF Yield
KGDEY converts 3.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
318.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How KGDEY Stacks Against Its Sector Peers
| Metric | KGDEY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 318.27 | 34.08 | Worse (Expensive) |
| ROE | 1.11% | 1117.00% | Weak |
| Net Margin | 1.29% | -95381.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 7.88 | Strong (Low Leverage) |
| Current Ratio | 0.88 | 5.75 | Weak Liquidity |
| ROA | 0.61% | -308447.00% (disorted) | Weak |
KGDEY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kingdee International Software Group Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.69%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-134.80%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-11.51%
Industry Style: Growth, Innovation, High Beta
Declining