Fundamental Analysis for AMTD Stock (AMTD:NYE) is Bullish

Stock Target Advisor’s own stock analysis of AMTD Stock is Bullish , which is based on 12 positive signals and 5 negative signals. At the last closing, AMTD IDEA Group’s stock price was USD 1.16AMTD IDEA Group’s stock price has changed by -0.11% over the past week, -0.26% over the past month and +0.00% over the last year.

 

About AMTD IDEA Group (AMTD:NYE):

AMTD IDEA Group, an investment holding company, engages in investment banking activities in Hong Kong, Mainland China, the United States, and internationally. The company operates through three segments: Investment Banking, Asset Management, and Strategic Investment. It offers a range of investment banking services, including equity underwriting, debt underwriting, securities brokerage, institutional sales and distribution, and research, as well as advisory services on credit rating, financing, and mergers and acquisitions transactions. The company was formerly known as AMTD International Inc. AMTD IDEA Group was incorporated in 2019 and is based in Central, Hong Kong. AMTD IDEA Group operates as a subsidiary of AMTD Group Company Limited.

 

What we like:

Low volatility

The annual returns for AMTD stock have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to earnings

AMTD stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

AMTD stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

AMTD stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

AMTD Digital Inc. is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

AMTD Digital Inc. had positive total cash flow in the most recent four quarters.

Positive free cash flow

AMTD Digital Inc. had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

AMTD stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

High Gross Profit to Asset Ratio

AMTD stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns

AMTD Digital Inc. is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median total returns

AMTD Digital Inc. has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The average income yield of AMTD stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Low Revenue Growth

AMTD stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

AMTD stock has shown below median dividend growth in the previous 5 years compared to its sector.