# Henderson Far East Income Limited (HFEL.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services. Price 268p, market value 626 millionp.

## Valuation
- **P/E (trailing): 3.7×** (5-yr avg 2111.9×, 3-yr avg 915.7×). Henderson Far East Income Limited trades at 3.7× trailing earnings, well below its own five-year average of 2111.9×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×.
- **Price / sales: 3.6×**. Each dollar of revenue is priced at 3.6×.
- **Price / book: 1.0×**. The shares trade at 1.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.0×**. Enterprise value is 4.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 15.3%** (5-yr avg 0.1%). Free cash flow equals 15.3% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 26.9%**. The inverse of the P/E: 26.9% of the price is earned each year.

## Profitability
- **Gross margin: 96.2%**. Henderson Far East Income Limited keeps 96.2% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 95.0%**. 95.0% of revenue is left after running the business, an exceptional level.
- **Net margin: 84.4%**. 84.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.1%**. 11.1% on shareholders' equity is solid.
- **Return on invested capital: 35.9%**. Return on all capital, debt included, is 35.9%: comfortably above what that capital costs.
- **Return on assets: 32.7%**. Each dollar of assets produces 32.7% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 22.2%** (3-yr 36.6%/yr). Revenue grew 22.2% over the last year.
- **EPS growth (1 yr): 8.3%** (3-yr 68.1%/yr). Earnings per share rose 8.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 3.2%/yr**. Free cash flow has compounded at 3.2% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.
- **Cash and short-term investments: 25 millionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 9.49%** (0p per share, trailing). Henderson Far East Income Limited yields 9.49%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 95%** (90% of free cash flow). 95% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 18**. 18 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 1.6%/yr** (1-yr 1.2%). The dividend has grown 1.6% a year over five years.
- **Shareholder yield: -3.7%**. Dividends plus net buybacks return -3.7% of the market value a year.

## Price and momentum
- **Total return (1 yr): 15.1%** (YTD 11.7%, 3-mo 2.4%). The shares are up 15.1% over twelve months including dividends.
- **From 52-week high: -4.9%** (20.3% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): 0.51** (volatility 18%). Beta of 0.51 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HFEL.L · Page: https://foliofundamentals.com/stocks/hfel.l

Not investment advice.