New World Department Store China Limited
New World Department Store China Limited Fundamental Analysis
New World Department Store China Limited (NWRLY) shows weak financial fundamentals with a PE ratio of 12.87, profit margin of 3.15%, and ROE of 1.06%. The company generates $1.2B in annual revenue with weak year-over-year growth of -12.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 6.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NWRLY's fundamental strength across five key dimensions:
Efficiency Score
WeakNWRLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNWRLY trades at attractive valuation levels.
Growth Score
ModerateNWRLY shows steady but slowing expansion.
Financial Health Score
WeakNWRLY carries high financial risk with limited liquidity.
Profitability Score
ModerateNWRLY maintains healthy but balanced margins.
Key Financial Metrics
Is NWRLY Expensive or Cheap?
P/E Ratio
NWRLY trades at 12.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NWRLY's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values New World Department Store China Limited at 0.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -110.11 times EBITDA. This is generally considered low.
How Well Does NWRLY Make Money?
Net Profit Margin
For every $100 in sales, New World Department Store China Limited keeps $3.15 as profit after all expenses.
Operating Margin
Core operations generate 11.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.06 in profit for every $100 of shareholder equity.
ROA
New World Department Store China Limited generates $0.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
New World Department Store China Limited produces operating cash flow of $218.84M, showing steady but balanced cash generation.
Free Cash Flow
New World Department Store China Limited generates strong free cash flow of $209.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.11 in free cash annually.
FCF Yield
NWRLY converts 43.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How NWRLY Stacks Against Its Sector Peers
| Metric | NWRLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.87 | 24.26 | Better (Cheaper) |
| ROE | 1.06% | 1131.00% | Weak |
| Net Margin | 3.15% | 639.00% | Weak |
| Debt/Equity | 1.01 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.30 | 2.56 | Weak Liquidity |
| ROA | 0.38% | -8481.00% (disorted) | Weak |
NWRLY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews New World Department Store China Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-47.02%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
105.23%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
100.21%
Industry Style: Cyclical, Growth, Discretionary
High Growth