Santech Holdings Limited
Santech Holdings Limited Fundamental Analysis
Santech Holdings Limited (STEC) shows weak financial fundamentals with a PE ratio of -196.51, profit margin of -2.65%, and ROE of -0.13%. The company generates $0.1B in annual revenue with weak year-over-year growth of -98.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -65.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STEC's fundamental strength across five key dimensions:
Efficiency Score
WeakSTEC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTEC trades at attractive valuation levels.
Growth Score
WeakSTEC faces weak or negative growth trends.
Financial Health Score
ExcellentSTEC maintains a strong and stable balance sheet.
Profitability Score
WeakSTEC struggles to sustain strong margins.
Key Financial Metrics
Is STEC Expensive or Cheap?
P/E Ratio
STEC trades at -196.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STEC's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values Santech Holdings Limited at 56.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 544.29 times EBITDA. This signals the market has high growth expectations.
How Well Does STEC Make Money?
Net Profit Margin
For every $100 in sales, Santech Holdings Limited keeps $-2.65 as profit after all expenses.
Operating Margin
Core operations generate -1.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.13 in profit for every $100 of shareholder equity.
ROA
Santech Holdings Limited generates $-4.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Santech Holdings Limited generates strong operating cash flow of $1.05B, reflecting robust business health.
Free Cash Flow
Santech Holdings Limited generates strong free cash flow of $1.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $35.99 in free cash annually.
FCF Yield
STEC converts 1.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-196.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
56.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.18
vs 25 benchmark
How STEC Stacks Against Its Sector Peers
| Metric | STEC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -196.51 | 34.96 | Better (Cheaper) |
| ROE | -0.13% | 1045.00% | Weak |
| Net Margin | -2.65% | 5914873418.00% | Weak |
| Debt/Equity | 0.51 | 0.46 | Neutral |
| Current Ratio | 1.11 | 5.00 | Neutral |
| ROA | -4.44% | -295222.00% (disorted) | Weak |
STEC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Santech Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-100.00%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-100.00%
Industry Style: Growth, Innovation, High Beta
Declining