Water Oasis Group (SEHK:1161) - Share price, News & Analysis

1161 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

1161 Stock Overview

Water Oasis Group Limited, an investment holding company, provides beauty and related wellness services.

Rewards

Price-To-Earnings ratio (6.3x) is below the Hong Kong market (9.2x)

Earnings grew by 222.9% over the past year

Risk Analysis

1161 passed our risk checks.

Water Oasis Group Competitors

Steve Leung Design Group

SEHK:2262

HK$662.0m

Miricor Enterprises Holdings

SEHK:1827

HK$516.0m

China Wan Tong Yuan (Holdings)

SEHK:6966

HK$450.0m

Qeeka Home (Cayman)

SEHK:1739

HK$501.2m

Price History & Performance

Summary of all time highs, changes and price drops for Water Oasis Group
Historical stock prices
Current Share Price	HK$1.27
52 Week High	HK$2.00
52 Week Low	HK$1.05
Beta	1.1
1 Month Change	-9.93%
3 Month Change	3.25%
1 Year Change	4.96%
3 Year Change	19.81%
5 Year Change	19.81%
Change since IPO	115.25%

Shareholder Returns

	1161	HK Consumer Services	HK Market
7D	0%	-6.7%	2.1%
1Y	5.0%	-51.6%	-23.3%

Return vs Industry: 1161 exceeded the Hong Kong Consumer Services industry which returned -51.6% over the past year.

Return vs Market: 1161 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1161's price volatile compared to industry and market?
1161 volatility
1161 Average Weekly Movement	6.7%
Consumer Services Industry Average Movement	8.9%
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: 1161 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1161's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	1,043	Alan Tam	https://www.wateroasis.com.hk

Water Oasis Group Limited, an investment holding company, provides beauty and related wellness services. The company operates through Product and Service segments. It provides general, specialist, and medical beauty services to high-end, mid-range, and mass-market consumer sectors for men and women.

Water Oasis Group Fundamentals Summary

How do Water Oasis Group's earnings and revenue compare to its market cap?
1161 fundamental statistics
Market Cap	HK$871.11m
Earnings (TTM)	HK$137.95m
Revenue (TTM)	HK$903.43m

6.3x

P/E Ratio

1.0x

P/S Ratio

Is 1161 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1161 income statement (TTM)
Revenue	HK$903.43m
Cost of Revenue	HK$461.23m
Gross Profit	HK$442.19m
Other Expenses	HK$304.25m
Earnings	HK$137.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.20
Gross Margin	48.95%
Net Profit Margin	15.27%
Debt/Equity Ratio	1.8%

How did 1161 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 1161 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 1161?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1161. This is calculated by dividing 1161's market cap by their current preferred multiple.
What is 1161's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$871.11m

1161 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	0.9x
Enterprise Value/EBITDA	4.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 1161's PE Ratio compare to its peers?

1161 PE Ratio vs Peers

The above table shows the PE ratio for 1161 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	68.2x
2262 Steve Leung Design Group	225.7x	n/a	HK$662.0m
1827 Miricor Enterprises Holdings	20.3x	n/a	HK$516.0m
6966 China Wan Tong Yuan (Holdings)	21.1x	n/a	HK$450.0m
1739 Qeeka Home (Cayman)	5.6x	n/a	HK$501.2m
1161 Water Oasis Group	6.3x	n/a	HK$871.1m

Forward PE

Price-To-Earnings vs Peers: 1161 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (68.2x).

Price to Earnings Ratio vs Industry

How does 1161's PE Ratio compare vs other companies in the HK Consumer Services Industry?

Price-To-Earnings vs Industry: 1161 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the Hong Kong Consumer Services industry average (8.3x)

Price to Earnings Ratio vs Fair Ratio

What is 1161'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.

1161 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1161's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1161 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1161's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1161's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1161's PEG Ratio to determine if it is good value.

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Future Growth

How is Water Oasis Group 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

26.5%

Forecasted Consumer 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 Water Oasis 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.

Discover growth companies

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

Past Performance

How has Water Oasis Group performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

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

9.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1161 has high quality earnings.

Growing Profit Margin: 1161's current net profit margins (15.3%) are higher than last year (8.9%).

Past Earnings Growth Analysis

Earnings Trend: 1161's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: 1161's earnings growth over the past year (222.9%) exceeds its 5-year average (9.8% per year).

Earnings vs Industry: 1161 earnings growth over the past year (222.9%) exceeded the Consumer Services industry 17.3%.

Return on Equity

High ROE: 1161's Return on Equity (50.5%) is considered outstanding.

Discover strong past performing companies

Financial Health

How is Water Oasis Group'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: 1161's short term assets (HK$518.9M) do not cover its short term liabilities (HK$848.5M).

Long Term Liabilities: 1161's short term assets (HK$518.9M) exceed its long term liabilities (HK$193.5M).

Debt to Equity History and Analysis

Debt Level: 1161 has more cash than its total debt.

Reducing Debt: 1161's debt to equity ratio has reduced from 6.9% to 1.8% over the past 5 years.

Debt Coverage: 1161's debt is well covered by operating cash flow (1173.1%).

Interest Coverage: 1161's interest payments on its debt are well covered by EBIT (37.1x coverage).

Balance Sheet

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Dividend

What is Water Oasis Group 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 1161's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1161'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 1161's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1161's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1161 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 1161 has not reported any payouts.

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Management

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

8.3yrs

Average management tenure

CEO

Alan Tam (43 yo)

5.25yrs

Tenure

HK$5,123,000

Compensation

Mr. Siu Kei Tam, also known as Alan, has been the Chief Executive Officer of Water Oasis Group Limited since March 15, 2017 and served as its Director of Group Operation until March 15, 2017. Mr. Tam serve...

CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD652.68K) is above average for companies of similar size in the Hong Kong market ($USD233.02K).

Compensation vs Earnings: Alan's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 1161's management team is seasoned and experienced (8.3 years average tenure).

Board Members

Experienced Board: 1161's board of directors are seasoned and experienced ( 18.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: 1161 insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30