SEHK:8072

Stock Analysis Report

Executive Summary

Roma Group Limited, an investment holding company, provides valuation and technical advisory services in Hong Kong.

Risk Analysis

Earnings have declined by -66.36% per year over past 5 years

Does not have a meaningful market cap (HK$30M)

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Roma Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8072's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.1%

8072

6.7%

HK Professional Services

3.7%

HK Market


1 Year Return

-75.5%

8072

-27.2%

HK Professional Services

2.4%

HK Market

Return vs Industry: 8072 underperformed the Hong Kong Professional Services industry which returned -27.2% over the past year.

Return vs Market: 8072 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

8072IndustryMarket
7 Day-4.1%6.7%3.7%
30 Day-4.1%13.5%4.2%
90 Day-9.4%-4.7%1.1%
1 Year-75.5%-75.5%-27.2%-27.2%6.0%2.4%
3 Year-94.7%-95.0%-44.3%-44.9%25.6%12.9%
5 Year-97.2%-97.4%-22.1%-24.8%23.2%2.5%

Price Volatility Vs. Market

How volatile is Roma Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Roma Group undervalued compared to its fair value and its price relative to the market?

0.054x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8072's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8072's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8072 is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: 8072 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8072's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8072 is good value based on its PB Ratio (0.1x) compared to the HK Professional Services industry average (2.3x).


Next Steps

Future Growth

How is Roma Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.3%

Forecasted Commercial Services 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 Roma Group 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.


Next Steps

Past Performance

How has Roma Group performed over the past 5 years?

-66.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8072 is currently unprofitable.

Growing Profit Margin: 8072 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8072 is unprofitable, and losses have increased over the past 5 years at a rate of -66.4% per year.

Accelerating Growth: Unable to compare 8072's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8072 is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (11.8%).


Return on Equity

High ROE: 8072 has a negative Return on Equity (-11.98%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Roma Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8072's short term assets (HK$599.2M) exceed its short term liabilities (HK$256.5M).

Long Term Liabilities: 8072's short term assets (HK$599.2M) exceed its long term liabilities (HK$2.5M).


Debt to Equity History and Analysis

Debt Level: 8072's debt to equity ratio (18.9%) is considered satisfactory.

Reducing Debt: 8072's debt to equity ratio has reduced from 33.1% to 18.9% over the past 5 years.

Debt Coverage: 8072's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 8072's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 8072 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8072's debt is covered by short term assets (assets are 6x debt).


Next Steps

Dividend

What is Roma Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8072's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8072's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8072's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8072's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8072's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Roma Group's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Ken Yue (54yo)

2.7yrs

Tenure

HK$3,831,000

Compensation

Mr. Kwai Wa Yue, also known as Ken, AICPA, has been Chairman of the Board at Roma Group Limited since December 18, 2017, Chief Executive Officer since October 1, 2017 and as its Compliance Officer and Com ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD491.51K) is above average for companies of similar size in the Hong Kong market ($USD227.47K).

Compensation vs Earnings: Ken's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.8yrs

Average Tenure

41yo

Average Age

Experienced Management: 8072's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

47yo

Average Age

Experienced Board: 8072's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Ken Yue (54yo)

    Chairman

    • Tenure: 2.7yrs
    • Compensation: HK$3.83m
  • Kam Hong Wong (56yo)

    Chief Strategy Officer

    • Tenure: 2.5yrs
  • Claire Luk (41yo)

    Head of Marketing Department

    • Tenure: 8.8yrs
  • Chung Nga Kwan (32yo)

    Head of Business Valuation

    • Tenure: 10.3yrs
  • Kam Sau Cheng

    Accounts and Administrative Officer

    • Tenure: 0yrs
  • Michael Li (35yo)

    Project Director & Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$2.29m
  • Winnie Lam

    Senior Analyst

    • Tenure: 0yrs
  • Frank Wong

    Director and Head of Property Valuation & Corporate Advisory

    • Tenure: 0.3yrs

Board Members

  • Ken Yue (54yo)

    Chairman

    • Tenure: 2.7yrs
    • Compensation: HK$3.83m
  • Warren Ko (51yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$120.00k
  • Tat Keung Wong (48yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$120.00k
  • Michael Li (35yo)

    Project Director & Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$2.29m
  • Wai Lun Man (46yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: HK$7.00k
  • Tak Yin Li (38yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$120.00k

Company Information

Roma Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Roma Group Limited
  • Ticker: 8072
  • Exchange: SEHK
  • Founded:
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: HK$29.704m
  • Shares outstanding: 135.02m
  • Website: https://www.romagroup.com

Number of Employees


Location

  • Roma Group Limited
  • China Overseas Building
  • 22nd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8072SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2013

Biography

Roma Group Limited, an investment holding company, provides valuation and technical advisory services in Hong Kong. The company offers valuation services for business and intangible assets, such as busines ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:57
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.