TCL Electronics Holdings Limited
TCL Electronics Holdings Limited Fundamental Analysis
TCL Electronics Holdings Limited (TCLHF) shows moderate financial fundamentals with a PE ratio of 15.34, profit margin of 2.03%, and ROE of 12.78%. The company generates $108.1B in annual revenue with strong year-over-year growth of 25.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.3/100 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 TCLHF's fundamental strength across five key dimensions:
Efficiency Score
WeakTCLHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTCLHF trades at attractive valuation levels.
Growth Score
ModerateTCLHF shows steady but slowing expansion.
Financial Health Score
ExcellentTCLHF maintains a strong and stable balance sheet.
Profitability Score
WeakTCLHF struggles to sustain strong margins.
Key Financial Metrics
Is TCLHF Expensive or Cheap?
P/E Ratio
TCLHF trades at 15.34 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TCLHF's PEG of 0.16 indicates potential undervaluation.
Price to Book
The market values TCL Electronics Holdings Limited at 1.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.99 times EBITDA. This signals the market has high growth expectations.
How Well Does TCLHF Make Money?
Net Profit Margin
For every $100 in sales, TCL Electronics Holdings Limited keeps $2.03 as profit after all expenses.
Operating Margin
Core operations generate 1.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.78 in profit for every $100 of shareholder equity.
ROA
TCL Electronics Holdings Limited generates $2.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TCL Electronics Holdings Limited generates limited operating cash flow of $2.51B, signaling weaker underlying cash strength.
Free Cash Flow
TCL Electronics Holdings Limited generates weak or negative free cash flow of $1.90B, restricting financial flexibility.
FCF Per Share
Each share generates $0.75 in free cash annually.
FCF Yield
TCLHF converts 5.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How TCLHF Stacks Against Its Sector Peers
| Metric | TCLHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.34 | 34.79 | Better (Cheaper) |
| ROE | 12.78% | 1185.00% | Weak |
| Net Margin | 2.03% | -133093.00% (disorted) | Weak |
| Debt/Equity | 0.36 | 0.43 | Neutral |
| Current Ratio | 1.10 | 4.90 | Neutral |
| ROA | 2.66% | -324805.00% (disorted) | Weak |
TCLHF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TCL Electronics Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.81%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-30.32%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
7.08%
Industry Style: Growth, Innovation, High Beta
Growing