Happy City (HCHL) Fundamental Analysis: Revenue, Earnings & Valuation

7.62 / 10

Outperform

Fundamental evaluation rates HCHL at 7.6/10, highlighting strengths in ROA and net profit margin. However, key metrics such as ROA (%) and Annualized Net Profit Margin are negative (-32.41), indicating ongoing profitability challenges. Year-over-year growth in diluted earnings per share and total profit is severely negative (-285.71% and -286.47%), underscoring deteriorating earnings power. The interest coverage ratio of 48.59 suggests manageable debt service. Overall, the fundamentals are adequate but not robust, warranting caution.

Analysis Checks(6/6)

ROA (%)

Value-32.41

Score3/3

Weight15.63%

1M Return2.86%

Total profit (YoY growth rate %)

Value-286.47

Score3/3

Weight19.63%

1M Return3.63%

Annualized net profit margin on total assets (%)

Value-32.41

Score3/3

Weight15.63%

1M Return2.86%

Interest coverage ratio (EBIT / Interest expense) (%)

Value48.59

Score2/3

Weight7.90%

1M Return1.61%

Diluted earnings per share (YoY growth rate %)

Value-285.71

Score3/3

Weight21.65%

1M Return4.11%

Net profit attributable to parent company shareholders (YoY growth rate %)

Value-284.09

Score3/3

Weight19.54%

1M Return3.68%

Is HCHL undervalued or overvalued?

HCHL scores 7.62/10 on fundamentals and holds a Discounted valuation at present. Backed by its -173.01% ROE, -35.73% net margin, -7.99 P/E ratio, 8.79 P/B ratio, and 0.00% earnings growth, these metrics solidify its Outperform investment rating.