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Water Oasis Group (1161) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$749M

WO Water Oasis Group 1161 · HK
PriceHK$1.42
Fair ValueHK$2.63
Upside+85.2%
Quality69/100
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Mixed Growth
Thin margins · 9.6% net margin
Low debt · generates free cash flow
6.94% dividend yield
Ranks above peers (11/13)
Moderate moat 63/100
Evidence: High Range HK$1.97 – HK$3.28 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 2 days ago

Share price +12.7% over the past month.

A solid business, screening 85% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$1.97). The market is more pessimistic than our downside scenario.
  • Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$1.42 HK$0.4802 Fair Value HK$2.63 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$0.4802 – HK$1.42 · fair‑value band HK$1.97 – HK$3.28 · the HK$1.42 price screens below the HK$2.63 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Water Oasis Group (1161) currently trades at HK$1.42, while our model-based Fair Value estimate is HK$2.63, implying the stock looks roughly 85.2% undervalued today. The Quality Score stands at 69/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Water Oasis Group generated revenue of HK$1.0B at a net margin of 9.6%. Revenue grew 4.8% year over year. It earns a return on equity of 25.3%. The balance sheet holds a net cash position of HK$576M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.97 (bear case) to HK$3.28 (bull case); at HK$1.42, the current price sits below 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 near its 52-week high and 84% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -14% fair-value upside, at 85%, 1161 screens cheaper 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
Growth DCF HK$6.20 HK$7.73 HK$9.52 80
Residual Income HK$0.6700 HK$0.9000 HK$3.38 76
Rev-Margin DCF HK$3.85 HK$4.62 HK$5.49 74
All 23 models by family
DCF Models
FCF DCF HK$6.10 HK$7.77 HK$9.82 38
Owner Earnings HK$3.74 HK$4.63 HK$5.71 31
5Y Revenue Exit HK$3.85 HK$4.51 HK$5.27 39
5Y EBITDA Exit HK$5.40 HK$7.25 HK$9.27 41
5Y P/E Exit HK$4.19 HK$5.12 HK$6.00 38
10Y Revenue Exit HK$4.74 HK$5.48 HK$6.28 36
10Y EBITDA Exit HK$5.65 HK$7.16 HK$8.92 37
10Y P/E Exit HK$4.96 HK$5.85 HK$6.76 35
Earnings-Based
Graham-Dodd HK$0.8100 HK$1.81 HK$2.31 54
PEG = 1.0 HK$0.2900 HK$0.4200 HK$0.5400 46
EPV HK$2.93 HK$3.18 HK$3.39 59
Multiples
P/E Multiple HK$1.97 HK$2.63 HK$3.28 63
P/S Multiple HK$1.30 HK$1.73 HK$2.16 58
P/B Multiple HK$1.52 HK$2.03 HK$2.54 55
EV/EBIT HK$4.88 HK$6.14 HK$7.40 53
EV/EBITDA HK$5.45 HK$6.91 HK$8.36 54
EV/Revenue HK$2.31 HK$2.83 HK$3.35 43
Asset-Based
NCAV (Graham) HK$0.2600 HK$0.3500 HK$0.5200 50
Growth DCF
Growth DCF HK$6.20 HK$7.73 HK$9.52 80
Rev-Margin DCF HK$3.85 HK$4.62 HK$5.49 74
Economic Profit
Residual Income HK$0.6700 HK$0.9000 HK$3.38 76
ROIC Compounder HK$2.93 HK$3.18 HK$3.39 72
Growth Earnings
Growth-Adj P/E HK$1.47 HK$2.09 HK$2.72 68

Widest divergence: DCF Models (HK$5.48) versus Asset-Based (HK$0.3500). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$1.0B
Revenue growth (YoY) +4.8%
Net margin 9.6%
Return on equity 25.3%
Free cash flow HK$388M FY2025
P/E ratio 7.9 as of Jul 2, 2026
More key figures
Operating margin 17.4%
EPS (TTM) HK$0.0400
Dividend yield 6.9%
EPS growth (YoY) +27.1%
Net cash HK$576M FY2025

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

Quality Score breakdown

Overall quality 69/100

Of which business quality 67 · Market factors (momentum, volatility) 93

Profitability 51
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 82
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

Water Oasis Group Limited, together with its subsidiaries, operates beauty service centers in Hong Kong, Macau, and the People's Republic of China. It operates through Product and Service segments.

Full company description

Water Oasis Group Limited, together with its subsidiaries, operates beauty service centers in Hong Kong, Macau, and the People's Republic of China. It operates through Product and Service segments. The company offers general, specialist, and medical beauty services to high-end, mid-range, and mass-market consumer sectors for men and women through its spas, beauty salons, and medical beauty centers under the Oasis Beauty, Oasis Spa, Oasis Medical, Oasis Homme, Oasis Hair Spa, Oasis Dental Care, Oasis Health, Oasis Nail, Oasis Florist, Oasis Mom, phMedic+, InMedic, and Glycel Skin Spa brands. It also distributes skincare products under the Glycel, Eurobeauté, Erno Laszlo, DermaSynergy, HABA, and O~KO! beauty brands. In addition, the company operates online florist shops; and holds trademarks. Further, it is involved in the online sale of skincare products; provision of dental, medical, and aesthetic services; and holding of property, as well as produces and sells healing tea. Water Oasis Group Limited was founded in 1998 and is headquartered in Causeway Bay, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Water Oasis Group reported revenue of HK$981M in FY2025 versus HK$830M in FY2021, a compound +4.3%/yr. Reported net income was HK$81.3M in FY2025, compounding −16.9%/yr from FY2021.

Growth Quality 87/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$981M
Latest YoY
−0.2%
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.
+5.2%
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.
+13.1%
Avg. growth/yr (23Y) 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.
+5.2%
Revenue +4.3%/yr
FY21 HK$830M
FY22 HK$842M
FY23 HK$977M
FY24 HK$983M
FY25 HK$981M
Net income −16.9%/yr
FY21 HK$170M
FY22 HK$67.4M
FY23 HK$110M
FY24 HK$68.3M
FY25 HK$81.3M
Character of growth · EPS growth decomposed (2014-2025) +9.6 % p.a.
Revenue per share +5.7 pp

of which total revenue +4.4 pp · buybacks/dilution +1.3 pp

EBIT margin −9.1 pp
Tax rate +0.1 pp
Residual (interest, one-offs) +12.9 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).

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Cite: Fair Value Calculator (2026). "Water Oasis Group Fair Value". https://www.fairvalue-calculator.com/stock/1161

Peer Group

Personal Services · 43 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 69 · Top 25%
Fair Value upside +85% · Top 25%
Return on equity (TTM) 25% · Top 25%
Return on assets 7% · Above median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 17% · Top 25%
Revenue growth 5% · Below median
Dividend yield (TTM) 6.9% · Top 25%

Valuation Multiples vs Personal Services median · lower = cheaper

P/E (TTM) 7.9× · Cheaper than 75% of peers
P/B 2.12× · Pricier than median
P/S (TTM) 0.75× · Cheaper than median
P/FCF 0.2× · 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 100 · sector 17
FUTURE 24 · sector 27
PAST 100 · sector 29
HEALTH 100 · sector 98
DIVIDEND 100 · sector 82

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 Personal Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Rollins, Inc ROL $36.52 $21.11 -42%
Service Corporation SCI $84.40 $38.27 -55%
Frontdoor, Inc FTDR $85.51 $73.81 -14%
H&R Block, Inc HRB $54.18 $78.30 +45%
Bright Horizons Family Solutions Inc BFAM $71.52 $62.41 -13%
Fu Shou Yuan International Group 1448 HK$2.64 HK$4.20 +59%
Lungyen Life Service Corporation 5530 49.35 TWD 31.33 TWD -37%
Carriage Services, Inc CSV $33.69 $27.81 -17%
Musti Group MUSTI €15.05 €14.08 -6%
Uniao Pet Participacoes S.A AUAU3 R$3.32 R$1.20 -64%

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Frequently asked questions

Is Water Oasis Group (1161) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$2.63 versus a price of HK$1.42, about +85% (undervalued).
What is the fair value of 1161?
Our model-based fair value for Water Oasis Group is HK$2.63 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$1.42.
What is the quality score of 1161?
Water Oasis Group has a Quality Score of 69/100. 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 Water Oasis Group (1161)?
Water Oasis Group reported trailing-twelve-month revenue of about HK$1.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1161?
The net profit margin of Water Oasis Group is about 9.6%, meaning it keeps roughly 9.6% of revenue as net income. Based on the latest reported figures.
Does Water Oasis Group pay a dividend?
Water Oasis Group currently shows a dividend yield of about 6.94% 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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