Hong Leong Finance Limited
Hong Leong Finance Limited Fundamental Analysis
Hong Leong Finance Limited (S41.SI) shows moderate financial fundamentals with a PE ratio of 9.17, profit margin of 20.38%, and ROE of 2.98%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 7.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.7/100 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 S41.SI's fundamental strength across five key dimensions:
Efficiency Score
WeakS41.SI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentS41.SI trades at attractive valuation levels.
Growth Score
ModerateS41.SI shows steady but slowing expansion.
Financial Health Score
ExcellentS41.SI maintains a strong and stable balance sheet.
Profitability Score
ExcellentS41.SI achieves industry-leading margins.
Key Financial Metrics
Is S41.SI Expensive or Cheap?
P/E Ratio
S41.SI trades at 9.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, S41.SI's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Hong Leong Finance Limited at 0.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.47 times EBITDA. This signals the market has high growth expectations.
How Well Does S41.SI Make Money?
Net Profit Margin
For every $100 in sales, Hong Leong Finance Limited keeps $20.38 as profit after all expenses.
Operating Margin
Core operations generate 27.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.98 in profit for every $100 of shareholder equity.
ROA
Hong Leong Finance Limited generates $0.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hong Leong Finance Limited generates strong operating cash flow of $662.34M, reflecting robust business health.
Free Cash Flow
Hong Leong Finance Limited generates strong free cash flow of $654.73M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.46 in free cash annually.
FCF Yield
S41.SI converts 28.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1544.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How S41.SI Stacks Against Its Sector Peers
| Metric | S41.SI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.17 | 18.66 | Better (Cheaper) |
| ROE | 2.98% | 806.00% | Weak |
| Net Margin | 20.38% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 1544.83 | 662.02 | Strong Liquidity |
| ROA | 0.42% | -24409.00% (disorted) | Weak |
S41.SI 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 Hong Leong Finance Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.67%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
0.51%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
19.49%
Industry Style: Value, Dividend, Cyclical
High Growth