Latest Ratios: P/E Ratio N/A · EV/EBITDA 11.4x · ROE 219.2%. (2023–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2024 | FY 2023 |
|---|---|---|---|
| Market Cap | $29M | — | — |
| Enterprise Value | $31M | — | — |
| P/E Ratio → | — | — | — |
| P/S Ratio | 3.44 | — | — |
| P/B Ratio | — | — | — |
| P/FCF | 57.90 | — | — |
| P/OCF | 22.58 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2024 | FY 2023 |
|---|---|---|---|
| EV / Revenue | — | — | — |
| EV / EBITDA | 11.36 | — | — |
| EV / EBIT | 23.30 | — | — |
| EV / FCF | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 |
|---|---|---|---|
| Gross Margin | 27.3% | 27.3% | 11.4% |
| Operating Margin | 15.8% | 15.8% | -14.7% |
| Net Profit Margin | 15.9% | 15.9% | -16.1% |
| Metric | TTM | FY 2024 | FY 2023 |
|---|---|---|---|
| ROE | 219.2% | 219.2% | — |
| ROA | 24.0% | 24.0% | -26.9% |
| ROIC | 40.6% | 40.6% | -33.1% |
| ROCE | 62.3% | 62.3% | -76.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2024 | FY 2023 |
|---|---|---|---|
| Debt / Equity | 8.19 | 8.19 | — |
| Debt / EBITDA | 1.83 | 1.83 | 17.48 |
| Net Debt / Equity | — | 3.31 | — |
| Net Debt / EBITDA | 0.74 | 0.74 | 16.66 |
| Debt / FCF | — | 4.04 | — |
| Interest Coverage | 7.20 | 7.20 | -5.94 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2024 | FY 2023 |
|---|---|---|---|
| Current Ratio | 0.77 | 0.77 | 0.10 |
| Quick Ratio | 0.76 | 0.76 | 0.09 |
| Cash Ratio | 0.72 | 0.72 | 0.07 |
| Asset Turnover | — | 1.19 | 1.67 |
| Inventory Turnover | 158.21 | 158.21 | 171.37 |
| Days Sales Outstanding | — | 1.90 | 1.87 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 |
|---|---|---|---|
| Dividend Yield | — | — | — |
| Payout Ratio | — | — | — |
| Metric | TTM | FY 2024 | FY 2023 |
|---|---|---|---|
| Earnings Yield | — | — | — |
| FCF Yield | 1.7% | — | — |
| Buyback Yield | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | — | — |
| Shares Outstanding | — | $0 | $19M |
Geographic concentration in HK
Based on current market data, HCHL trades at a price-to-sales multiple of 3.44 and an EV/EBITDA of 11.36, suggesting that investors are pricing in a growth premium relative to the broader, more mature Hong Kong restaurant sector peers currently facing significant operational headwinds.
The 3.44 P/S ratio implies that the market expects sustained revenue expansion, likely driven by the company's successful niche positioning in the AYCE hotpot market. However, the lack of a P/E multiple makes it difficult to determine if this valuation is supported by earnings quality or if it reflects speculative enthusiasm for the brand's recent 22.81% growth trajectory.
As reported in financial statements, HCHL achieves a net margin of 15.91%, which appears notably superior to larger, more established Hong Kong restaurant operators, suggesting that the company's lean, three-unit model effectively minimizes corporate overhead and maximizes store-level profitability in a competitive environment.
The narrow spread between the 27.27% gross margin and the 15.80% operating margin indicates that the company likely classifies labor and store-level costs within its cost of sales. This structure warrants caution, as it may mask the true sensitivity of the business to rising labor costs or inflationary pressures on raw food inputs.
According to recent financial disclosures, HCHL maintains a debt-to-equity ratio of 8.19%, a conservative posture that provides the company with significant financial flexibility to navigate the volatile Hong Kong retail landscape without the burden of heavy interest obligations or restrictive debt covenants.
This low leverage profile is a key differentiator compared to peers that may be over-leveraged from aggressive expansion or historical debt-funded acquisitions. Investors should monitor whether management maintains this discipline if they decide to scale beyond their current three-unit footprint, as increased debt could quickly erode the current high net margins.
Based on an analysis of the company's cost structure, the 27.27% gross margin is the most commonly misapplied metric, as it obscures the true underlying profitability of the food service model by likely including labor and store-level expenses that are typically excluded by larger industry peers.
Analysts should instead focus on the operating margin and net margin to assess the company's true earning power, as these metrics better reflect the efficiency of the AYCE business model. Comparing HCHL's gross margin directly to industry standards of 60-70% would lead to an incorrect conclusion that the business is fundamentally inefficient.
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Quick answers to the most common questions about buying HCHL stock.
Happy City Holdings Limited Class A Ordinary shares's current EV/EBITDA is 11.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Happy City Holdings Limited Class A Ordinary shares's return on equity (ROE) is 219.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 219.2%.
Based on historical data, Happy City Holdings Limited Class A Ordinary shares is trading at valuation metrics that vary. Compare with industry peers and growth rates for a complete picture.
Happy City Holdings Limited Class A Ordinary shares has 27.3% gross margin and 15.8% operating margin. Operating margin between 10-20% is typical for established companies.
Happy City Holdings Limited Class A Ordinary shares's Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.