Hartford Great Health Corp. provides hospitality services. It operates through Hospitality and Education segments. The company provides hotel and travel agency services. It also offers early childhood education services, such as parent-child and bilingual childcare classes. The company was formerly known as PhotoAmigo, Inc. and changed its name to Hartford Great Health Corp. in August 2018. Hartford Great Health Corp. was incorporated in 2008 and is based in Rosemead, California.

Hartford Great Health Corp.

Consumer Cyclical

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

HFUS reported revenue of USD  At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 185ppts and its growth accelerated by 51ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported very strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 72.0% in the last 12 months, up from 60.8% in FY23. 

Historically, HFUS has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 64.6%, down from 87.0% in FY23. 

Hartford Great Health Corp. reported a return on equity (RoE) of -44.0% in the last 12 months, down from -35.6% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to 49.7% in the last 12 months, a decrease from 76.2% in FY24. 

In the last 12 months, the return on capital employed (RoCE) declined to -44.1%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 19.5 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

HFUS has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, adequate interest coverage, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to slow historical revenue growth, negligible return on capital, excessive margin volatility, and poor working capital management.

In highly turbulent market conditions, HFUS is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, HFUS is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to immense. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITDA, overvalued on P/FCF. 

Hartford Great Health Corp.

$ 5.5

1

Hartford Great Health Corp.

$ 5.5

1

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 5.5

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