Xtep International Holdings Limited
Xtep International Holdings Limited Fundamental Analysis
Xtep International Holdings Limited (XTEPY) shows moderate financial fundamentals with a PE ratio of 9.84, profit margin of 10.60%, and ROE of 15.07%. The company generates $12.1B in annual revenue with weak year-over-year growth of -5.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.2/100 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 XTEPY's fundamental strength across five key dimensions:
Efficiency Score
WeakXTEPY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentXTEPY trades at attractive valuation levels.
Growth Score
WeakXTEPY faces weak or negative growth trends.
Financial Health Score
ExcellentXTEPY maintains a strong and stable balance sheet.
Profitability Score
ModerateXTEPY maintains healthy but balanced margins.
Key Financial Metrics
Is XTEPY Expensive or Cheap?
P/E Ratio
XTEPY trades at 9.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, XTEPY's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Xtep International Holdings Limited at 1.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.14 times EBITDA. This is generally considered low.
How Well Does XTEPY Make Money?
Net Profit Margin
For every $100 in sales, Xtep International Holdings Limited keeps $10.60 as profit after all expenses.
Operating Margin
Core operations generate 16.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.07 in profit for every $100 of shareholder equity.
ROA
Xtep International Holdings Limited generates $8.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Xtep International Holdings Limited generates limited operating cash flow of $1.08B, signaling weaker underlying cash strength.
Free Cash Flow
Xtep International Holdings Limited produces free cash flow of $732.82M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $27.72 in free cash annually.
FCF Yield
XTEPY converts 6.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How XTEPY Stacks Against Its Sector Peers
| Metric | XTEPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.84 | 23.49 | Better (Cheaper) |
| ROE | 15.07% | 1160.00% | Weak |
| Net Margin | 10.60% | 672.00% | Weak |
| Debt/Equity | 0.25 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.20 | 2.56 | Strong Liquidity |
| ROA | 8.15% | -8277.00% (disorted) | Weak |
XTEPY outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Xtep International Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.42%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
58.39%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
46.89%
Industry Style: Cyclical, Growth, Discretionary
High Growth