K. Wah International Holdings Limited
K. Wah International Holdings Limited Fundamental Analysis
K. Wah International Holdings Limited (KWHAF) shows moderate financial fundamentals with a PE ratio of 20.04, profit margin of 4.20%, and ROE of 0.73%. The company generates $7.0B in annual revenue with strong year-over-year growth of 17.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KWHAF's fundamental strength across five key dimensions:
Efficiency Score
WeakKWHAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKWHAF trades at attractive valuation levels.
Growth Score
ModerateKWHAF shows steady but slowing expansion.
Financial Health Score
ExcellentKWHAF maintains a strong and stable balance sheet.
Profitability Score
ModerateKWHAF maintains healthy but balanced margins.
Key Financial Metrics
Is KWHAF Expensive or Cheap?
P/E Ratio
KWHAF trades at 20.04 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KWHAF's PEG of -0.17 indicates potential undervaluation.
Price to Book
The market values K. Wah International Holdings Limited at 0.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.45 times EBITDA. This is generally considered low.
How Well Does KWHAF Make Money?
Net Profit Margin
For every $100 in sales, K. Wah International Holdings Limited keeps $4.20 as profit after all expenses.
Operating Margin
Core operations generate 7.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.73 in profit for every $100 of shareholder equity.
ROA
K. Wah International Holdings Limited generates $0.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
K. Wah International Holdings Limited generates strong operating cash flow of $2.59B, reflecting robust business health.
Free Cash Flow
K. Wah International Holdings Limited generates strong free cash flow of $2.59B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
KWHAF converts 43.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.007
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How KWHAF Stacks Against Its Sector Peers
| Metric | KWHAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.04 | 24.42 | Better (Cheaper) |
| ROE | 0.73% | 679.00% | Weak |
| Net Margin | 4.20% | 4598.00% | Weak |
| Debt/Equity | 0.33 | -22.07 (disorted) | Distorted |
| Current Ratio | 2.73 | 14.99 | Strong Liquidity |
| ROA | 0.45% | -1369.00% (disorted) | Weak |
KWHAF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews K. Wah International Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-33.12%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-89.46%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-24.94%
Industry Style: Income, Inflation Hedge, REIT
Declining