HWH International Inc. (HWH) Stock Analysis
HWH International Inc. (HWH) Stock Analysis
Overall Grade: F (Concerning)
View interactive company profile →
HWH International Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 149.9% | Above industry average |
| FCF Margin | -85.6% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 149.9% suggests durable competitive advantages and efficient capital allocation.
What is HWH International Inc.'s Profitability and ROIC?
HWH International Inc. generates strong returns on invested capital at 149.9%, indicating efficient capital allocation and competitive advantages. Gross margin of 46.4% with operating margin at -110.4% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 149.9% | Excellent | Strong capital efficiency |
| Return on Equity (ROE) | -40.3% | Red flag | Moderate equity returns |
| Gross Margin | 46.4% | Good | Strong pricing power |
| Operating Margin | -110.4% | Warning | Moderate operational efficiency |
How Strong is HWH International Inc.'s Cash Flow Quality?
HWH International Inc. generated $-984252 in free cash flow over the trailing twelve months, representing a -85.6% 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 | -85.6% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-984252 | Red flag | Cash burn |
| OCF/Net Income | 0.9x | Good | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is HWH International Inc.'s Financial Health?
HWH International Inc.'s debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is HWH International Inc. Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | 5.3x | Adequate | Growth premium priced in |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 149.9% | Top 5% | 35.3x above |
| Free Cash Flow Margin | -85.6% | Bottom 10% | - |
| Gross Margin | 46.4% | Top 50% | 1.5x above |
| Operating Margin | -110.4% | Bottom 10% | -18.6x below |
| Return on Equity (ROE) | -40.3% | Bottom 10% | -5.0x below |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 149.9% (Excellent - Top 5% of sector (median: 4.3%))
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: -85.6% (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 46.4% (Good - Top 50% of sector (median: 31.2%))
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: 0.0% (Excellent)
Frequently Asked Questions
Q: What is HWH International Inc.'s Return on Invested Capital (ROIC)?
HWH International Inc. (HWH) has a trailing twelve-month Return on Invested Capital (ROIC) of 149.9%. This compares above the sector median of 4.3%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is HWH International Inc.'s Free Cash Flow Margin?
HWH International Inc. (HWH) has a free cash flow margin of -85.6%, generating $-984252 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 HWH International Inc. stock overvalued or undervalued?
HWH International Inc. (HWH) The EV/Sales multiple is 5.3x.
Q: What is HWH International Inc.'s revenue and earnings growth?
HWH International Inc. (HWH) grew revenue by 85.1% year-over-year. Net income grew by 67.0% year-over-year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does HWH International Inc. compare to competitors in Other?
Compared to other companies in Other, HWH International Inc. (HWH) shows: ROIC of 149.9% is above the sector median of 4.3% (Top 0%). FCF margin of -85.6% trails the sector median of 0.0%. Gross margin at 46.4% is 15.3 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.
Q: What warning signs should I watch for with HWH International Inc.?
Investors in HWH International Inc. (HWH) should monitor these potential warning signs: 1) FCF margin is thin at -85.6%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-22. 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.