NASDAQ
LHSW
Last Price
US $2.53
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Lianhe Sowell International Group Ltd Ordinary Shares cash flow to debt ratio of -55.68% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Lianhe Sowell International Group Ltd Ordinary Shares's free cash flow has decreased 0.88% from $-1.50M last year to $-1.51M, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
Lianhe Sowell International Group Ltd Ordinary Shares's debt to equity ratio is 0.23, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Lianhe Sowell International Group Ltd Ordinary Shares's debt has decreased relative to shareholder equity from 0.32 last year to 0.23 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Lianhe Sowell International Group Ltd Ordinary Shares has a net debt to EBITDA ratio of 0.71x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Lianhe Sowell International Group Ltd Ordinary Shares's interest coverage ratio of 30.27 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Lianhe Sowell International Group Ltd Ordinary Shares's profit margin has increased (11.06%) in the last year from 7.70% to 8.55%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Lianhe Sowell International Group Ltd Ordinary Shares's short-term assets of $23.06M exceed its short-term liabilities of $18.65M
Increasing performance - ROA.
Lianhe Sowell International Group Ltd Ordinary Shares's return on assets of 10.17% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Lianhe Sowell International Group Ltd Ordinary Shares's return on equity of 32.14%, is higher than 15.00%, indicating good performance
Decreasing performance - Earnings quality.
Lianhe Sowell International Group Ltd Ordinary Shares's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Lianhe Sowell International Group Ltd Ordinary Shares had positive net income in 3.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
Lianhe Sowell International Group Ltd Ordinary Shares has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
Lianhe Sowell International Group Ltd Ordinary Shares has negative free cash flow, indicating cash burn
Increasing performance - Healthy earnings growth.
Lianhe Sowell International Group Ltd Ordinary Shares's yearly earnings has increased 10.89% since last year from $2.82M to $3.12M, signaling increasing performance
Decreasing performance - Healthy revenue growth.
Lianhe Sowell International Group Ltd Ordinary Shares's yearly revenue has decreased -0.16% since last year from $36.60M to $36.54M, signaling decreasing performance
Increasing performance - ROIC.
ROIC 21.53% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Lianhe Sowell International Group Ltd Ordinary Shares's 3-year revenue CAGR of 237.64% is positive, indicating growing revenue over the past 3 years
Decreasing performance - Revenue consistency.
Lianhe Sowell International Group Ltd Ordinary Shares had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
Lianhe Sowell International Group Ltd Ordinary Shares had positive ROE in 3.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Lianhe Sowell International Group Ltd Ordinary Shares has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Lianhe Sowell International Group Ltd Ordinary Shares has an earnings yield of 39.52%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Lianhe Sowell International Group Ltd Ordinary Shares is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Lianhe Sowell International Group Ltd Ordinary Shares has an EV/EBITDA ratio of 3.02x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Lianhe Sowell International Group Ltd Ordinary Shares has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Lianhe Sowell International Group Ltd Ordinary Shares has a price-to-book ratio of 0.68x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Lianhe Sowell International Group Ltd Ordinary Shares has a price-to-sales ratio of 0.22x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
32.14%
Return on equity
ROIC: 21.53%
Valuation History
3.5X
Price to Earnings
EV/EBITDA: 3.9X
Cash flow
Profit margin
-
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
Fair Value
Market $2.53
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