BYAH

We rate Park Ha Biological Technology Co., Ltd. (BYAH) as a Hold with a composite score of 57.9/100 at a current price of $2.36. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in quality (87th percentile) and value (79th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (1th percentile) and investment (23th percentile) tempers our overall conviction. We assign a Narrow Moat rating (52/100), High uncertainty, and Exemplary capital allocation.

Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Park Ha Biological Technology Co., Ltd. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 57.9/100 places it at rank #910 in our full 7,333-stock universe. At $5M in market capitalization, Park Ha Biological Technology Co., Ltd. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue contraction of -3% combined with momentum at the 49th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.

The margin cascade tells an important story: gross margins of 92% (+49.3pp vs sector) narrow to operating margins of 33% (+32.0pp vs sector) and net margins of 20.1%, yielding a gross-to-net conversion rate of 22%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.

At a current price of $2.36, Park Ha Biological Technology Co., Ltd. appears undervalued relative to its fundamentals. Our value factor score of 79/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.

The stock currently trades at a P/E of 97.5x (a 338% premium to the sector median of 22.3x), EV/EBITDA of 73.1x (at a premium), P/B of 158.6x, P/S of 25.1x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.

We assign a High uncertainty rating to Park Ha Biological Technology Co., Ltd.. Key risk factors include elevated market sensitivity (beta of 7.66), below-average price stability (1th percentile), elevated valuation multiple (P/E 97.5x) that leaves limited margin for error. The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 7.66); below-average price stability (1th percentile); elevated valuation multiple (P/E 97.5x) that leaves limited margin for error. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 1th percentile and quality factor at the 87th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 92% provide a buffer against cost pressures; conservative leverage (4% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate Park Ha Biological Technology Co., Ltd.'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 127.1%, disciplined leverage (4% D/E), best-in-class net margins of 20.1%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Park Ha Biological Technology Co., Ltd. meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 62.1% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Park Ha Biological Technology Co., Ltd. receives a Hold rating with a composite score of 57.9/100 (rank #910 of 7,333). Our quantitative framework assigns a Narrow Moat (52/100, trend: stable), High uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 48/100.

Our analysis supports a neutral stance on Park Ha Biological Technology Co., Ltd.. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.