QuantaSing Group Ltd Fundamental Analysis (NASDAQ: QSG)
QuantaSing Group Ltd Fundamental Analysis (NASDAQ: QSG)
QuantaSing Group Ltd (NASDAQ: QSG) shows moderate financial fundamentals with a PE ratio of 4.85, profit margin of 10.16%, and ROE of 1.04%. The company generates $11.3B 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 77.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze QSG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentQSG demonstrates superior asset utilization.
Valuation Score
ExcellentQSG trades at attractive valuation levels.
Growth Score
ModerateQSG shows steady but slowing expansion.
Financial Health Score
ExcellentQSG maintains a strong and stable balance sheet.
Profitability Score
ModerateQSG maintains healthy but balanced margins.
Key Financial Metrics
Is QSG Expensive or Cheap?
P/E Ratio
QSG trades at 4.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, QSG's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values QuantaSing Group Ltd at 3.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.85 times EBITDA. This signals the market has high growth expectations.
How Well Does QSG Make Money?
Net Profit Margin
For every $100 in sales, QuantaSing Group Ltd keeps $10.16 as profit after all expenses.
Operating Margin
Core operations generate 9.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.04 in profit for every $100 of shareholder equity.
ROA
QuantaSing Group Ltd generates $27.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
QuantaSing Group Ltd generates limited operating cash flow of $838.63M, signaling weaker underlying cash strength.
Free Cash Flow
QuantaSing Group Ltd produces free cash flow of $827.84M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.07 in free cash annually.
FCF Yield
QSG converts 5.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.04
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.68
vs 25 benchmark
How QSG Stacks Against Its Sector Peers
| Metric | QSG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.85 | 19.57 | Better (Cheaper) |
| ROE | 104.17% | 675.00% | Weak |
| Net Margin | 10.16% | -3840.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 2.39 | Neutral |
| ROA | 27.04% | 1251.00% | Weak |
QSG outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews QuantaSing Group Ltd'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: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility