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Four Seas Mercantile Holdings (0374) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$954M

FS Four Seas Mercantile Holdings 0374 · HK
PriceHK$2.50
Fair ValueHK$0.5600
Upside-77.6%
Quality49/100
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Expensive Growth
Thin margins · 0.1% net margin
Low debt · negative free cash flow
3.78% dividend yield
Trails peers (3/12)
Narrow moat 16/100
Evidence: Medium Range HK$0.4200 – HK$0.7000 Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 2 days ago

Share price −3.8% over the past month.

Below-average quality, and screening another 78% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.7000). The favourable scenario is already priced in.
  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$2.90 HK$2.15 Fair Value HK$0.5600 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$2.15 – HK$2.90 · fair‑value band HK$0.4200 – HK$0.7000 · the HK$2.50 price screens above the HK$0.5600 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Four Seas Mercantile Holdings (0374) currently trades at HK$2.50, while our model-based Fair Value estimate is HK$0.5600, implying the stock looks roughly 77.6% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Four Seas Mercantile Holdings generated revenue of HK$3.7B at a net margin of 0.1%. Revenue grew 3.2% year over year. It earns a return on equity of 0.1%. Net debt stands at HK$836M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.4200 (bear case) to HK$0.7000 (bull case); at HK$2.50, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 12% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -14% fair-value upside, at -78%, 0374 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$2.03 HK$1.87 HK$1.23 76
ROIC Compounder HK$1.95 HK$2.09 HK$2.20 72
Gordon GGM HK$0.7400 HK$1.04 HK$1.30 70
All 14 models by family
Earnings-Based
Graham-Dodd HK$0.1800 HK$0.3800 HK$0.4800 54
EPV HK$1.95 HK$2.09 HK$2.20 59
Dividend Discount
Gordon GGM HK$0.7400 HK$1.04 HK$1.30 70
DDM Multi-Stage HK$0.7400 HK$1.00 HK$1.26 61
Multiples
P/E Multiple HK$0.4200 HK$0.5600 HK$0.7000 63
P/S Multiple HK$0.3400 HK$0.4500 HK$0.5700 58
P/B Multiple HK$0.3400 HK$0.4500 HK$0.5700 55
EV/EBIT HK$3.07 HK$3.78 HK$4.49 53
EV/EBITDA HK$8.10 HK$10.48 HK$12.87 54
EV/Revenue HK$2.46 HK$3.11 HK$3.76 43
Asset-Based
NCAV (Graham) HK$1.58 HK$2.11 HK$3.15 50
Economic Profit
Residual Income HK$2.03 HK$1.87 HK$1.23 76
ROIC Compounder HK$1.95 HK$2.09 HK$2.20 72
Growth Earnings
Growth-Adj P/E HK$0.3100 HK$0.4400 HK$0.5700 68

Widest divergence: Asset-Based (HK$2.11) versus Earnings-Based (HK$0.3800). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$3.7B
Revenue growth (YoY) +3.2%
Net margin 0.1%
Return on equity 0.1%
Free cash flow −HK$102M FY2025
P/E ratio 83.7 as of Jul 1, 2026
More key figures
Operating margin 2.2%
Dividend yield 3.8%
EPS growth (YoY) -35.4%
Net debt HK$836M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 49 · Market factors (momentum, volatility) 55

Profitability 38
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 33
Distance to the 52-week high (market factor)
Net Issuance 84
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Four Seas Mercantile Holdings Limited, an investment holding company, engages in the manufacture and trade in snack food, confectionery, beverages, frozen food products, noodles, and ham and ham-related products in Hong Kong, Mainland China, and Japan.

Full company description

Four Seas Mercantile Holdings Limited, an investment holding company, engages in the manufacture and trade in snack food, confectionery, beverages, frozen food products, noodles, and ham and ham-related products in Hong Kong, Mainland China, and Japan. The company offers food comprising milk powder, biscuits, cakes, candies, chocolates, chips, snacks, instant noodles, beverages, alcohol, soy sauce, seasonings, ham, sausages, chicken, beef, pork, seafood, seaweed, and vegetables, as well as eggs, dairy products, tofu, and rice. Its retail and catering business operates restaurants, such as the Shiki Etsu Japanese restaurant; Kung Tak Lam Shanghai vegetarian restaurant; Sushiyoshi Japanese omakase restaurant; Sushi Oh revolving sushi restaurant; Panxi; Noble Chiu Chow restaurant; The CHOYA Ginza BAR; Okashi Land Japanese snack stores; YOKU MOKU cookies stores; Japanese Ice Cream House; and Seas of Flavour. The company also operates 17 food processing plants that produce snacks, such as potato chips, shrimp strips, and corn sticks. In addition, it provides lunchboxes and tuck-shop services, as well as transportation services. Further, the company is involved in property investment and holding; marketing of snack food; processing of chestnuts; e-commerce retail of confectionery and food products; manufacture and package of ham and ham-related products; and advertising agency business. It offers its products through a distribution network that covers department stores, supermarkets, convenience stores, fast food chains, wholesalers, retailers, restaurants, bars, hotels, and airlines. Four Seas Mercantile Holdings Limited was founded in 1971 and is based in Kwun Tong, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Four Seas Mercantile Holdings reported revenue of HK$3.6B in FY2025 versus HK$4.6B in FY2021, a compound −5.7%/yr. Reported net income was HK$10.2M in FY2025, compounding −23.8%/yr from FY2021.

Growth Quality 29/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$3.6B
Latest YoY
−7.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−8.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.4%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.6%
Revenue −5.7%/yr
FY21 HK$4.6B
FY22 HK$4.7B
FY23 HK$4.2B
FY24 HK$3.9B
FY25 HK$3.6B
Net income −23.8%/yr
FY21 HK$30.1M
FY22 HK$12.6M
FY23 HK$40.7M
FY24 HK$34.7M
FY25 HK$10.2M
Character of growth · EPS growth decomposed (2014-2025) −14.3 % p.a.
Revenue per share +3.3 pp

of which total revenue +3.2 pp · buybacks/dilution +0.1 pp

EBIT margin −11.1 pp
Tax rate +1.1 pp
Residual (interest, one-offs) −7.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

0374 screens 78% overvalued. Compare with Nestlé India Limited →

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Cite: Fair Value Calculator (2026). "Four Seas Mercantile Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0374

Peer Group

Packaged Foods · 649 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 49 · Below median
Fair Value upside −78% · Bottom 25%
Return on equity (TTM) 0% · Below median
Return on assets 1% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 3.8% · Above median
Debt / equity 0.23× · Higher than median

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/E (TTM) 83.7× · Pricier than 75% of peers
P/B 0.10× · Cheaper than 75% of peers
P/S (TTM) 0.03× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 25
FUTURE 16 · sector 19
PAST 1 · sector 28
HEALTH 89 · sector 96
DIVIDEND 76 · sector 57

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Nestlé India Limited NESTLEIND ₹1,507 ₹362.37 -76%
Britannia Industries Limited BRITANNIA ₹5,646 ₹1,870 -67%
Tata Consumer Products Limited TATACONSUM ₹1,062 ₹327.27 -69%
PT Indofood CBP Sukses Makmur Tbk ICBP 7,550 IDR 12,864 IDR +70%
Samyang Foods Co 003230 1,219,000 KRW 1,010,543 KRW -17%
Patanjali Foods Limited PATANJALI ₹352.60 ₹144.77 -59%
Vietnam Dairy Products Joint Stock Company VNM 61,600 VND 52,858 VND -14%
PT Mayora Indah Tbk, MYOR 1,665 IDR 2,699 IDR +62%
PT Cisarua Mountain Dairy Tbk CMRY 4,630 IDR 4,350 IDR -6%
Nongshim Co 004370 389,500 KRW 530,619 KRW +36%

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Frequently asked questions

Is Four Seas Mercantile Holdings (0374) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.5600 versus a price of HK$2.50, about −78% (overvalued).
What is the fair value of 0374?
Our model-based fair value for Four Seas Mercantile Holdings is HK$0.5600 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.50.
What is the quality score of 0374?
Four Seas Mercantile Holdings has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Four Seas Mercantile Holdings (0374)?
Four Seas Mercantile Holdings reported trailing-twelve-month revenue of about HK$3.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0374?
The net profit margin of Four Seas Mercantile Holdings is about 0.1%, meaning it keeps roughly 0.1% of revenue as net income. Based on the latest reported figures.
Does Four Seas Mercantile Holdings pay a dividend?
Four Seas Mercantile Holdings currently shows a dividend yield of about 3.78% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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