King Fook Holdings Limited, an investment holding company, engages in the retail and wholesale of gold ornaments, jewelry, watches, fashion, gifts, and diamond products primarily in Hong Kong.
The last earnings update was 24 days ago.
Discounted Cash Flow Calculation for SEHK:280 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
King Fook Holdings
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:280 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
King Fook Holdings
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
King Fook Holdings
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
King Fook Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
King Fook Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
King Fook Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
King Fook Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 King Fook Holdings 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Specialty Retail industry annual growth in earnings.
Earnings growth vs Low Risk Savings
King Fook Holdings
expected to grow at an
Unable to compare King Fook Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare King Fook Holdings's earnings growth to the Hong Kong market average as no estimate data is available.
Unable to compare King Fook Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Unable to determine if King Fook Holdings is high growth as no earnings estimate data is available.
Unable to determine if King Fook Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
All data from King Fook Holdings Company Filings, last reported 3 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
SEHK:280 Past Financials Data
Date (Data in HKD Millions)
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
Unable to establish if King Fook Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Examine whether King Fook Holdings is trading at King Fook Holdings'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
King Fook Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
King Fook Holdings
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
King Fook Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
King Fook Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
King Fook Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
King Fook Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 30.3x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
King Fook Holdings Limited (HKG:280) Might Not Be A Great Investment
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for King Fook Holdings: 0.0042 = HK$2.7m ÷ (HK$688m - HK$54m) (Based on the trailing twelve months to March 2019.) So, King Fook Holdings has an ROCE of 0.4%. … What Are Current Liabilities, And How Do They Affect King Fook Holdings's ROCE? … King Fook Holdings has very few current liabilities, which have a minimal effect on its already low ROCE.
Is King Fook Holdings Limited (HKG:280) A Volatile Stock?
If you're interested in King Fook Holdings Limited (HKG:280), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Investors Who Bought King Fook Holdings Shares Five Years Ago Are Now Down 46%
King Fook Holdings Limited (HKG:280) shareholders should be happy to see the share price up 13% in the last quarter. … Because King Fook Holdings is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Over half a decade King Fook Holdings reduced its trailing twelve month revenue by 23% for each year.
What does King Fook Holdings Limited's (HKG:280) Balance Sheet Tell Us About Its Future?
King Fook Holdings Limited (HKG:280) is a small-cap stock with a market capitalization of HK$397.44m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes
King Fook Holdings Limited, an investment holding company, engages in the retail and wholesale of gold ornaments, jewelry, watches, fashion, gifts, and diamond products primarily in Hong Kong. The company is also involved in the provision of money exchange services; and investment and bullion trading services. The company was founded in 1949 and is based in Central, Hong Kong. King Fook Holdings Limited is a subsidiary of Yeung Chi Shing Estates Limited.
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