Cosmos Machinery Enterprises (SEHK:118) - Share price, News & Analysis

118 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

118 Stock Overview

Cosmos Machinery Enterprises Limited, an investment holding company, manufactures and sells machineries in Hong Kong, Mainland China, other Asia-Pacific countries, North America, and Europe.

Rewards

Price-To-Earnings ratio (3.3x) is below the Hong Kong market (9.2x)

Earnings grew by 358.3% over the past year

Risk Analysis

Does not have a meaningful market cap (HK$297M)

Cosmos Machinery Enterprises Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cosmos Machinery Enterprises
Historical stock prices
Current Share Price	HK$0.34
52 Week High	HK$0.52
52 Week Low	HK$0.32
Beta	0.97
1 Month Change	-1.43%
3 Month Change	-8.00%
1 Year Change	-17.86%
3 Year Change	-22.47%
5 Year Change	-34.91%
Change since IPO	-51.35%

Recent News & Updates

May 24

We Think Cosmos Machinery Enterprises (HKG:118) Can Manage Its Debt With Ease

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	118	HK Machinery	HK Market
7D	-1.4%	1.6%	2.1%
1Y	-17.9%	-26.8%	-23.3%

Return vs Industry: 118 exceeded the Hong Kong Machinery industry which returned -26.8% over the past year.

Return vs Market: 118 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 118's price volatile compared to industry and market?
118 volatility
118 Average Weekly Movement	4.2%
Machinery Industry Average Movement	6.7%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 118 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 118's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1958	2,523	Freeman Tang	https://www.cosmel.com

Cosmos Machinery Enterprises Limited, an investment holding company, manufactures and sells machineries in Hong Kong, Mainland China, other Asia-Pacific countries, North America, and Europe. The company operates through four segments: Trading of Industrial Consumables, Processing and Manufacturing of Plastic Products, Manufacturing of Machinery, and Processing and Trading of Printed Circuit Boards. Its machinery products include two-platen injection molding, servo-driven injection molding, all-electric high precision injection molding, special purpose injection molding, multi-material injection molding, rubber injection, extrusion line, hydraulic press, CNC turret punching, CNC brake press, and CNC shearing machines.

Cosmos Machinery Enterprises Fundamentals Summary

How do Cosmos Machinery Enterprises's earnings and revenue compare to its market cap?
118 fundamental statistics
Market Cap	HK$297.37m
Earnings (TTM)	HK$89.73m
Revenue (TTM)	HK$3.08b

3.3x

P/E Ratio

0.1x

P/S Ratio

Is 118 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
118 income statement (TTM)
Revenue	HK$3.08b
Cost of Revenue	HK$2.53b
Gross Profit	HK$544.49m
Other Expenses	HK$454.76m
Earnings	HK$89.73m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.10
Gross Margin	17.71%
Net Profit Margin	2.92%
Debt/Equity Ratio	18.4%

How did 118 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 118 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 118?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 118. This is calculated by dividing 118's market cap by their current preferred multiple.
What is 118's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$297.37m

118 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.1x
Enterprise Value/EBITDA	2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 118's PE Ratio compare to its peers?

118 PE Ratio vs Peers

The above table shows the PE ratio for 118 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.1x

Forward PE

Price-To-Earnings vs Peers: 118 is good value based on its Price-To-Earnings Ratio (3.3x) compared to the peer average (10.1x).

Price to Earnings Ratio vs Industry

How does 118's PE Ratio compare vs other companies in the HK Machinery Industry?

Price-To-Earnings vs Industry: 118 is good value based on its Price-To-Earnings Ratio (3.3x) compared to the Hong Kong Machinery industry average (10.8x)

Price to Earnings Ratio vs Fair Ratio

What is 118's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

118 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 118's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 118 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 118's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 118's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 118's PEG Ratio to determine if it is good value.

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Future Growth

How is Cosmos Machinery Enterprises forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.8%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cosmos Machinery Enterprises has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Cosmos Machinery Enterprises's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Cosmos Machinery Enterprises competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Cosmos Machinery Enterprises performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

61.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 118 has high quality earnings.

Growing Profit Margin: 118's current net profit margins (2.9%) are higher than last year (0.8%).

Past Earnings Growth Analysis

Earnings Trend: 118 has become profitable over the past 5 years, growing earnings by 61.7% per year.

Accelerating Growth: 118's earnings growth over the past year (358.3%) exceeds its 5-year average (61.7% per year).

Earnings vs Industry: 118 earnings growth over the past year (358.3%) exceeded the Machinery industry 35.1%.

Return on Equity

High ROE: 118's Return on Equity (5.1%) is considered low.

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Financial Health

How is Cosmos Machinery Enterprises's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 118's short term assets (HK$2.1B) exceed its short term liabilities (HK$1.2B).

Long Term Liabilities: 118's short term assets (HK$2.1B) exceed its long term liabilities (HK$81.1M).

Debt to Equity History and Analysis

Debt Level: 118 has more cash than its total debt.

Reducing Debt: 118's debt to equity ratio has reduced from 30.8% to 18.4% over the past 5 years.

Debt Coverage: 118's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: 118's interest payments on its debt are well covered by EBIT (12.6x coverage).

Balance Sheet

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Dividend

What is Cosmos Machinery Enterprises's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 118's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 118's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 118's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 118's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 118 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 118 has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure

CEO

Freeman Tang (43 yo)

8.92yrs

Tenure

HK$4,695,000

Compensation

Mr. Yu Tang, also known as Freeman, has been the Chief Executive Officer of Cosmos Machinery Enterprises Ltd. since July 01, 2013. Mr. Tang has been an Executive Director of Cosmos Machinery Enterprises Lt...

CEO Compensation Analysis

Compensation vs Market: Freeman's total compensation ($USD598.15K) is above average for companies of similar size in the Hong Kong market ($USD233.26K).

Compensation vs Earnings: Freeman's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: 118's management team is seasoned and experienced (6.2 years average tenure).

Board Members

Experienced Board: 118's board of directors are seasoned and experienced ( 15.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31