A2B Australia Limited
A2B Australia Limited Fundamental Analysis
A2B Australia Limited (A2B.AX) shows moderate financial fundamentals with a PE ratio of 6.54, profit margin of 18.95%, and ROE of 27.13%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze A2B.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentA2B.AX demonstrates superior asset utilization.
Valuation Score
ExcellentA2B.AX trades at attractive valuation levels.
Growth Score
ModerateA2B.AX shows steady but slowing expansion.
Financial Health Score
ExcellentA2B.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentA2B.AX achieves industry-leading margins.
Key Financial Metrics
Is A2B.AX Expensive or Cheap?
P/E Ratio
A2B.AX trades at 6.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, A2B.AX's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values A2B Australia Limited at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.46 times EBITDA. This is generally considered low.
How Well Does A2B.AX Make Money?
Net Profit Margin
For every $100 in sales, A2B Australia Limited keeps $18.95 as profit after all expenses.
Operating Margin
Core operations generate 7.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.13 in profit for every $100 of shareholder equity.
ROA
A2B Australia Limited generates $14.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
A2B Australia Limited generates limited operating cash flow of $10.73M, signaling weaker underlying cash strength.
Free Cash Flow
A2B Australia Limited generates weak or negative free cash flow of $234.91K, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
A2B.AX converts 0.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How A2B.AX Stacks Against Its Sector Peers
| Metric | A2B.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.54 | 34.36 | Better (Cheaper) |
| ROE | 27.13% | 1116.00% | Weak |
| Net Margin | 18.95% | -125900.00% (disorted) | Strong |
| Debt/Equity | 0.18 | 7.88 | Strong (Low Leverage) |
| Current Ratio | 1.82 | 5.74 | Neutral |
| ROA | 14.49% | -309000.00% (disorted) | Strong |
A2B.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews A2B Australia Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta