Huaneng Power International Inc (HNP) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HNP • US4433041005
21.51
+0.41 (+1.94%)
Last: Jul 7, 2022, 09:41 PM
HNP gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. HNP may be in some trouble as it scores bad on both profitability and health. HNP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HNP has reported negative net income.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.94% | ||
| ROE | N/A | ||
| ROIC | -2.04% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | -5.88% | ||
| PM (TTM) | -6.52% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HNP is destroying value.
- The number of shares outstanding for HNP remains at a similar level compared to 1 year ago.
- The debt/assets ratio for HNP is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.32, we must say that HNP is in the distress zone and has some risk of bankruptcy.
- HNP has a Debt/Equity ratio of 1.79. This is a high value indicating a heavy dependency on external financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.32 |
ROIC/WACC-0.34
WACC5.99%
2.3 Liquidity
- A Current Ratio of 0.53 indicates that HNP may have some problems paying its short term obligations.
- A Quick Ratio of 0.47 indicates that HNP may have some problems paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- HNP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -351.05%.
- The Revenue has grown by 22.88% in the past year. This is a very strong growth!
- Measured over the past years, HNP shows a quite strong growth in Revenue. The Revenue has been growing by 8.17% on average per year.
EPS 1Y (TTM)-351.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-152.94%
Revenue 1Y (TTM)22.88%
Revenue growth 3Y6.4%
Revenue growth 5Y8.17%
Sales Q2Q%30.74%
3.2 Future
- Based on estimates for the next years, HNP will show a very strong growth in Earnings Per Share. The EPS will grow by 45.74% on average per year.
- The Revenue is expected to grow by 6.50% on average over the next years.
EPS Next Y269.69%
EPS Next 2Y103.81%
EPS Next 3Y68.69%
EPS Next 5Y45.74%
Revenue Next Year20.1%
Revenue Next 2Y10.25%
Revenue Next 3Y8.82%
Revenue Next 5Y6.5%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HNP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- The Price/Forward Earnings ratio is 6.93, which indicates a rather cheap valuation of HNP.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, HNP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.93 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- HNP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- HNP's earnings are expected to grow with 68.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y103.81%
EPS Next 3Y68.69%
5. Dividend
5.1 Amount
- No dividends for HNP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Huaneng Power International Inc / HNP FAQ
Can you provide the ChartMill fundamental rating for Huaneng Power International Inc?
ChartMill assigns a fundamental rating of 3 / 10 to HNP.
Can you provide the valuation status for Huaneng Power International Inc?
ChartMill assigns a valuation rating of 7 / 10 to Huaneng Power International Inc (HNP). This can be considered as Undervalued.
Can you provide the profitability details for Huaneng Power International Inc?
Huaneng Power International Inc (HNP) has a profitability rating of 1 / 10.
What is the financial health of Huaneng Power International Inc (HNP) stock?
The financial health rating of Huaneng Power International Inc (HNP) is 1 / 10.
Can you provide the dividend sustainability for HNP stock?
The dividend rating of Huaneng Power International Inc (HNP) is 0 / 10 and the dividend payout ratio is -110.7%.