Latest Ratios: P/E Ratio N/A · EV/EBITDA 4.6x · ROE 32.0%. (2022–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Market Cap | $13M | — | — | — | — |
| Enterprise Value | $16M | — | — | — | — |
| P/E Ratio → | — | — | — | — | — |
| P/S Ratio | 0.35 | — | — | — | — |
| P/B Ratio | 1.07 | — | — | — | — |
| P/FCF | — | — | — | — | — |
| P/OCF | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| EV / Revenue | — | — | — | — | — |
| EV / EBITDA | 4.58 | — | — | — | — |
| EV / EBIT | 5.04 | — | — | — | — |
| EV / FCF | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Gross Margin | 26.2% | 26.2% | 21.8% | 25.7% | 50.1% |
| Operating Margin | 8.4% | 8.4% | 8.2% | 14.0% | -48.9% |
| Net Profit Margin | 8.6% | 8.6% | 7.7% | 12.3% | -41.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 32.0% | 32.0% | 50.8% | 70.5% | -29.6% |
| ROA | 12.5% | 12.5% | 19.9% | 27.1% | -14.7% |
| ROIC | 19.0% | 19.0% | 33.0% | 56.2% | -23.5% |
| ROCE | 30.3% | 30.3% | 50.9% | 74.9% | -32.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 0.23 | 0.23 | 0.32 | 0.28 | 0.24 |
| Debt / EBITDA | 0.78 | 0.78 | 0.80 | 0.49 | — |
| Net Debt / Equity | — | 0.22 | 0.29 | 0.05 | 0.12 |
| Net Debt / EBITDA | 0.75 | 0.75 | 0.74 | 0.09 | — |
| Debt / FCF | — | — | — | — | 0.89 |
| Interest Coverage | 32.05 | 32.05 | 51.52 | 31.55 | -6.69 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 1.24 | 1.24 | 1.42 | 1.55 | 1.96 |
| Quick Ratio | 1.24 | 1.24 | 1.42 | 1.55 | 1.96 |
| Cash Ratio | 0.01 | 0.01 | 0.02 | 0.13 | 0.12 |
| Asset Turnover | — | 1.19 | 1.91 | 1.41 | 0.36 |
| Inventory Turnover | — | — | — | — | — |
| Days Sales Outstanding | — | 205.59 | 143.60 | 226.33 | 768.36 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — |
| FCF Yield | — | — | — | — | — |
| Buyback Yield | 0.0% | — | — | — | — |
| Total Shareholder Yield | 0.0% | — | — | — | — |
| Shares Outstanding | — | $3M | $3M | $3M | $3M |
Severe liquidity and collection risk
Based on reported figures, the company trades at a price-to-sales multiple of 0.13, which, according to recent financial statements, suggests that the market is heavily discounting the firm's revenue quality due to its persistent inability to convert project-based billings into tangible cash reserves.
The low P/S and P/B multiples appear to reflect a market consensus that the company's revenue base is fragile and potentially overstated in terms of economic value. Investors should monitor whether this valuation gap is a structural discount for micro-cap risk or an accurate reflection of the firm's limited scalability.
As reported in financial statements, the company maintains a gross margin of 26.20%, which, when compared to broader technology sector averages, indicates that LHSW functions more as a low-margin industrial integrator than a high-value software developer, leaving little room for error in its cost structure.
The narrow 8.43% operating margin suggests that fixed costs, particularly technical labor and R&D, consume the majority of gross profits. This thin margin profile warrants further investigation into whether the company can maintain profitability if input costs for optical sensors and specialized components continue to rise.
According to recent SEC filings, the company's cash reserves of $108,745 against $36.5 million in revenue represent a critical liquidity vulnerability, suggesting that the firm lacks the necessary buffer to navigate even minor delays in client payments or unexpected disruptions in its project-based business model.
The extreme disparity between revenue and cash suggests that the company's working capital is likely tied up in long-term receivables or unbilled contract assets. This liquidity position appears unsustainable and may force the company to seek dilutive financing to maintain daily operations.
Based on the company's reported figures, the most commonly misapplied metric is the net margin of 8.55%, which, as indicated by the negligible cash balance, likely obscures the reality that reported earnings are not translating into actual cash inflows for the business.
Analysts should prioritize cash flow from operations over net income to assess the true earning power of the firm. The reliance on milestone-based revenue recognition may be inflating the perceived health of the business while masking significant collection risks inherent in the Chinese SME manufacturing sector.
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Quick answers to the most common questions about buying LHSW stock.
Lianhe Sowell International Group Ltd Ordinary Shares's current EV/EBITDA is 4.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Lianhe Sowell International Group Ltd Ordinary Shares's return on equity (ROE) is 32.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 30.9%.
Based on historical data, Lianhe Sowell International Group Ltd Ordinary Shares is trading at valuation metrics that vary. Compare with industry peers and growth rates for a complete picture.
Lianhe Sowell International Group Ltd Ordinary Shares has 26.2% gross margin and 8.4% operating margin.
Lianhe Sowell International Group Ltd Ordinary Shares's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.