SK hynix Inc. Fundamental Analysis (NASDAQ: SKHY)
SK hynix Inc. (NASDAQ: SKHY) shows strong financial fundamentals with a PE ratio of 10.25, profit margin of 85.62%, and ROE of 1.37%. The company generates $188209.5B in annual revenue with strong year-over-year growth of 46.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 98.7/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze SKHY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSKHY demonstrates superior asset utilization.
Valuation Score
ExcellentSKHY trades at attractive valuation levels.
Growth Score
ModerateSKHY shows steady but slowing expansion.
Financial Health Score
ExcellentSKHY maintains a strong and stable balance sheet.
Profitability Score
ExcellentSKHY achieves industry-leading margins.
Key Financial Metrics
Is SKHY Expensive or Cheap?
P/E Ratio
SKHY trades at 10.25 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SKHY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values SK hynix Inc. at 10.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.72 times EBITDA. This is generally considered low.
How Well Does SKHY Make Money?
Net Profit Margin
For every $100 in sales, SK hynix Inc. keeps $85.62 as profit after all expenses.
Operating Margin
Core operations generate 68.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.37 in profit for every $100 of shareholder equity.
ROA
SK hynix Inc. generates $72.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SK hynix Inc. generates strong operating cash flow of $70.32T, reflecting robust business health.
Free Cash Flow
SK hynix Inc. generates strong free cash flow of $40.48T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5702.97 in free cash annually.
FCF Yield
SKHY converts 2.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.37
vs 25 benchmark
ROA
Return on assets percentage
0.73
vs 25 benchmark
ROCE
Return on capital employed
0.71
vs 25 benchmark
How SKHY Stacks Against Its Sector Peers
| Metric | SKHY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.25 | 35.70 | Better (Cheaper) |
| ROE | 137.28% | 723.00% | Weak |
| Net Margin | 85.62% | -131080.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.22 | Strong (Low Leverage) |
| Current Ratio | 2.62 | 5.96 | Strong Liquidity |
| ROA | 72.69% | 247.00% | Weak |
SKHY 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 SK hynix Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
201.69%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
794.17%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
329.37%
Industry Style: Growth, Innovation, High Beta
High Growth