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The Hong Kong and China Gas Company Limited (3) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

The Hong Kong and China Gas Company Limited

3Market cap $17BPrice $0.9

Country🇭🇰Hong Kong

SectorUtilities

IndustryGas Utilities

Supplies piped gas to over 1.9 million households and businesses across Hong Kong, a monopoly it's held for more than 160 years. Also builds gas infrastructure across mainland China, powering millions of stoves without a single competitor in sight.

In Bastion Portfolios?

52W Return-3%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-4%2

Revenue Forecast

Rev CAGR (1y)+2%3

Rev CAGR (3y)+2%2

Rev CAGR (5y)+2%2

Earnings Forecast

EPS Growth Y+1+12%7

EPS Growth Y+2+3%4

EPS Growth Y+3+10%7

Quality

Margins

EBIT Margin14%6

Net Income Margin11%6

Free Cash Flow Margin11%6

Debt

Net Debt/EBITDA4.52

Efficiency

ROE11%5

ROA5%6

Earnings Stability55

GEAR+AVERAGE37

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)204

P/E Ratio (Forward 3y)183

P/BV2.26

EV Multiples

EV/EBITDA Fwd125

EV/EBIT Fwd175

Yield

Free Cash Flow Yield4.5%6

Dividend Yieldna–

Momentum

Short term

1 month return-4%6

3 month return+10%8

YTD return+5%6

Mid term

Price vs 52wHigh94%9

1 year return+9%6

Long term

3 year return+49%6

5 year return-23%2

Risk Shield

Price Risk

Beta0.110

Volatility17%10

Free Cash Flow

Free Cash Flow Margin11%6

Free Cash Flow Yield4.5%6

Quality

ROCE6%4

Earnings Stability55

Net Debt/EBITDA4.52

02Growth

Is it actually growing, and how fast?

3The Hong Kong and China Gas Company

Revenue FY25$7.0B

GROWTH RATING↗

VERY WEAK13 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-4%2

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+2%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+12%7

EPS growth, FY27E+3%4

EPS growth, FY28E+10%7

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 2%/yr), so margins should widen.

WATCH

After shrinking over the last 3 years, revenue is set to grow 2%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 87% of companies worldwide.

Revenue fell 4%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Revenue is set to grow 2%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

3The Hong Kong and China Gas Company

Total return Current3.5%

Price return Current−25.7%

MOMENTUM RATING↗

AVERAGE64 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return+10%8

YTD return+5%6

MID & LONG-TERM▾SCORE

% of 52-week high94%9

1-year return+9%6

3-year return+49%6

5-year return-23%2

MOMENTUM ASSESSMENT

STRENGTHS

It's up 9% over the past year, now 6% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+10%).

WATCH

Average long-term results. Multi-year returns are middling (+49% over three years and -23% over five), roughly average for the market.

Returns sit at the market level over the past month (-4%) and so far this year (+5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Towngas. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

3The Hong Kong and China Gas Company

Revenue FY25$7.0B

GROWTH RATING↗

VERY WEAK13 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-4%2

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+2%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+12%7

EPS growth, FY27E+3%4

EPS growth, FY28E+10%7

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 2%/yr), so margins should widen.

WATCH

After shrinking over the last 3 years, revenue is set to grow 2%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 87% of companies worldwide.

Revenue fell 4%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Revenue is set to grow 2%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

3The Hong Kong and China Gas Company

Total return Current3.5%

Price return Current−25.7%

MOMENTUM RATING↗

AVERAGE64 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return+10%8

YTD return+5%6

MID & LONG-TERM▾SCORE

% of 52-week high94%9

1-year return+9%6

3-year return+49%6

5-year return-23%2

MOMENTUM ASSESSMENT

STRENGTHS

It's up 9% over the past year, now 6% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+10%).

WATCH

Average long-term results. Multi-year returns are middling (+49% over three years and -23% over five), roughly average for the market.

Returns sit at the market level over the past month (-4%) and so far this year (+5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Towngas. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community