Horizon Space Acquisition II Corp. (HSPT) Stock Analysis

Horizon Space Acquisition II Corp. (HSPT) Stock Analysis

Overall Grade: F (Concerning)

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Horizon Space Acquisition II Corp. faces challenges in financial performance that warrant careful analysis.

Key Metrics:

Metric Value Context
ROIC N/A Below expectations
FCF Margin 0.0% Cash flow pressure
Debt/Equity -0.7x Conservative leverage

Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.


What is Horizon Space Acquisition II Corp.'s Profitability and ROIC?

Horizon Space Acquisition II Corp.'s return on invested capital of N/A is below the typical cost of capital.

Key Metrics

Metric Value Rating Interpretation
Return on Invested Capital (ROIC) N/A Red flag Below cost of capital
Return on Equity (ROE) 5627.4% Excellent Efficient use of shareholder equity

How Strong is Horizon Space Acquisition II Corp.'s Cash Flow Quality?

Horizon Space Acquisition II Corp. generated $-990558 in free cash flow over the trailing twelve months, representing a 0.0% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.

Key Metrics

Metric Value Rating Interpretation
Free Cash Flow Margin 0.0% Red flag Thin cash margins
Free Cash Flow (TTM) $-990558 Red flag Cash burn
OCF/Net Income -0.7x Warning Potential accrual concerns
FCF Consistency (8Q) N/A Warning Variable cash flow

What is Horizon Space Acquisition II Corp.'s Financial Health?

Horizon Space Acquisition II Corp.'s debt-to-equity ratio of -0.7x indicates conservative leverage.

Key Metrics

Metric Value Rating Interpretation
Debt to Equity -0.7x Excellent Conservative capital structure
Net Cash Position $-233373 Adequate Net debt position

Is Horizon Space Acquisition II Corp. Stock Overvalued or Undervalued?

Horizon Space Acquisition II Corp. trades at a P/E of 14.7x, representing a premium to the sector median of N/A. Free cash flow yield of -4.5% reflects market expectations for growth.

Key Metrics

Metric Value Rating Interpretation
P/E Ratio 14.7x Adequate Reasonable valuation
EV/Sales 0.0x Excellent Attractive revenue multiple
FCF Yield -4.5% Warning Lower cash yield

Sector Rankings

Metric Value Percentile vs Median
Free Cash Flow Margin 0.0% Bottom 10% 0.0x below
Return on Equity (ROE) 5627.4% Top 5% 1192.0x above
P/E Ratio 14.7x N/A -

Rating Thresholds

Free Cash Flow Margin

The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.

Rating Range Interpretation
Excellent > 20% Strong cash generation, high-quality business
Good 10% - 20% Healthy cash conversion
Adequate 5% - 10% Moderate cash generation
Warning 0% - 5% Thin cash margins, capital intensive
Red flag < 0% Cash burn, potential liquidity concerns

Current: 0.0% (Red flag)

Debt to Equity Ratio

Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.

Rating Range Interpretation
Excellent < 0.3x Conservative leverage, strong balance sheet
Good 0.3x - 0.7x Moderate leverage, healthy financial position
Adequate 0.7x - 1.5x Elevated leverage, monitor closely
Warning 1.5x - 3.0x High leverage, increased financial risk
Red flag > 3.0x Excessive leverage, potential distress risk

Current: -68.8% (Excellent)

P/E Ratio (Price-to-Earnings)

Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.

Rating Range Interpretation
Excellent < 15x Attractively valued, potential opportunity
Good 15x - 25x Fair value for quality company
Adequate 25x - 35x Growth premium, justify with earnings growth
Warning 35x - 50x High expectations priced in
Red flag > 50x or negative Speculative valuation or losses

Current: 14.7x (Adequate)

Free Cash Flow Yield

Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.

Rating Range Interpretation
Excellent > 8% High cash return, potential value opportunity
Good 5% - 8% Solid cash yield
Adequate 3% - 5% Moderate cash return
Warning 1% - 3% Low cash yield, growth expectations
Red flag < 1% Minimal cash return to shareholders

Current: -4.5% (Red flag)


Frequently Asked Questions

Q: What is Horizon Space Acquisition II Corp.'s Return on Invested Capital (ROIC)?

Horizon Space Acquisition II Corp. (HSPT) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 8.6%. An ROIC below 8% suggests the company may be destroying shareholder value.

Q: What is Horizon Space Acquisition II Corp.'s Free Cash Flow Margin?

Horizon Space Acquisition II Corp. (HSPT) has a free cash flow margin of 0.0%, generating $-990558 in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.

Q: Is Horizon Space Acquisition II Corp. stock overvalued or undervalued?

Horizon Space Acquisition II Corp. (HSPT) trades at a P/E ratio of 14.7x, which is above the sector median of N/A. The EV/Sales multiple is 0.0x.

Q: What is Horizon Space Acquisition II Corp.'s revenue and earnings growth?

Horizon Space Acquisition II Corp. (HSPT) Earnings per share increased by 96233.3% compared to the prior year.

Q: How does Horizon Space Acquisition II Corp. compare to competitors in Real Estate?

Compared to other companies in Real Estate, Horizon Space Acquisition II Corp. (HSPT) shows: ROIC of N/A is below the sector median of 8.6% (NaNx median). FCF margin of 0.0% trails the sector median of 13.8%. These rankings are based on MetricDuck's analysis of all Real Estate companies with available SEC filings.

Q: What warning signs should I watch for with Horizon Space Acquisition II Corp.?

Investors in Horizon Space Acquisition II Corp. (HSPT) should monitor these potential warning signs: 1) FCF margin is thin at 0.0%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.


Data Source: Data sourced from 10-Q filed 2025-11-13. TTM metrics as of Q3 2025.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

This analysis is for informational purposes only and does not constitute investment advice.