Huaneng Power Stock Analysis, Valuation (NYSE:HNP)

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$25.85 $0.38 (1.49%) HNP stock closing price Aug 16, 2018 (Closing)

View the Huaneng Power stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for HNP stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Huaneng Power International Inc (ADR) Stock Rating 2.1/5

Amigobulls HNP stock analysis takes into account various financial ratios like relative valuation, Huaneng Power revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Huaneng Power dividend performance. We compare Huaneng Power valuation with its sector peers to gauge relative attractiveness of HNP stock. Huaneng Power stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy HNP stock?

  • Huaneng Power sales grew by 26.3% year on year in 2018-03.
  • Revenue growth has been tremendous with a compounded annual growth of 2.8 over the last 5 years.
  • The company has an operating cash flow which is 7.5966 times the net income. We see this as a positive signal.
  • HNP stock is trading at a favorable price to sales multiple of 0.4 as against the Utilities sector average multiple of 2.
  • Huaneng Power's dividend yield of 5.58 is attractive.
  • Huaneng Power has a healthy FCF (Free Cash Flow) margin of 13.2.

Should you sell HNP stock?

  • Huaneng Power's LTM Net margins were poor at 1%.
  • Huaneng Power is debt laden and has a high debt/equity ratio of 2.37.
  • HNP stock is trading at a PE ratio of 33.8, which is worse than the sector average multiple of 19.6.
  • Huaneng Power has a low Return On Equity (ROE) of 1.7.

Comments on this video and Huaneng Power stock

Amigobulls Huaneng Power stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of HNP stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Huaneng Power revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.