Raytech Holding Limited Fundamental Analysis (NASDAQ: RAY)
Raytech Holding Limited Fundamental Analysis (NASDAQ: RAY)
Raytech Holding Limited (NASDAQ: RAY) shows strong financial fundamentals with a PE ratio of 3.71, profit margin of 11.70%, and ROE of 13.54%. The company generates $0.1B in annual revenue with strong year-over-year growth of 17.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.7/100 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 RAY's fundamental strength across five key dimensions:
Efficiency Score
WeakRAY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRAY trades at attractive valuation levels.
Growth Score
ModerateRAY shows steady but slowing expansion.
Financial Health Score
ExcellentRAY maintains a strong and stable balance sheet.
Profitability Score
WeakRAY struggles to sustain strong margins.
Key Financial Metrics
Is RAY Expensive or Cheap?
P/E Ratio
RAY trades at 3.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RAY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Raytech Holding Limited at 0.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.94 times EBITDA. This is generally considered low.
How Well Does RAY Make Money?
Net Profit Margin
For every $100 in sales, Raytech Holding Limited keeps $11.70 as profit after all expenses.
Operating Margin
Core operations generate 12.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.54 in profit for every $100 of shareholder equity.
ROA
Raytech Holding Limited generates $7.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Raytech Holding Limited generates limited operating cash flow of $-12.43M, signaling weaker underlying cash strength.
Free Cash Flow
Raytech Holding Limited generates weak or negative free cash flow of $-12.43M, restricting financial flexibility.
FCF Per Share
Each share generates $-5.36 in free cash annually.
FCF Yield
RAY converts -29.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How RAY Stacks Against Its Sector Peers
| Metric | RAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.71 | 26.29 | Better (Cheaper) |
| ROE | 13.54% | 966.00% | Weak |
| Net Margin | 11.70% | -4927.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 2.36 | 2.32 | Strong Liquidity |
| ROA | 7.75% | 295.00% | Weak |
RAY outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Raytech Holding Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
151.69%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
49.71%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-5.38%
Industry Style: Cyclical, Growth, Discretionary
Declining