Auswide Bank Ltd
Auswide Bank Ltd Fundamental Analysis
Auswide Bank Ltd (ABA.AX) shows weak financial fundamentals with a PE ratio of 21.08, profit margin of 18.05%, and ROE of 3.85%. The company generates $0.1B in annual revenue with weak year-over-year growth of -69.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -48.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ABA.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakABA.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentABA.AX trades at attractive valuation levels.
Growth Score
WeakABA.AX faces weak or negative growth trends.
Financial Health Score
WeakABA.AX carries high financial risk with limited liquidity.
Profitability Score
ModerateABA.AX maintains healthy but balanced margins.
Key Financial Metrics
Is ABA.AX Expensive or Cheap?
P/E Ratio
ABA.AX trades at 21.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ABA.AX's PEG of 0.21 indicates potential undervaluation.
Price to Book
The market values Auswide Bank Ltd at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.91 times EBITDA. This is generally considered low.
How Well Does ABA.AX Make Money?
Net Profit Margin
For every $100 in sales, Auswide Bank Ltd keeps $18.05 as profit after all expenses.
Operating Margin
Core operations generate 26.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.85 in profit for every $100 of shareholder equity.
ROA
Auswide Bank Ltd generates $0.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Auswide Bank Ltd generates strong operating cash flow of $48.92M, reflecting robust business health.
Free Cash Flow
Auswide Bank Ltd generates strong free cash flow of $45.31M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.87 in free cash annually.
FCF Yield
ABA.AX converts 15.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How ABA.AX Stacks Against Its Sector Peers
| Metric | ABA.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.08 | 18.66 | Worse (Expensive) |
| ROE | 3.85% | 806.00% | Weak |
| Net Margin | 18.05% | -451.00% (disorted) | Strong |
| Debt/Equity | 3.02 | 1.00 | Weak (High Leverage) |
| Current Ratio | 0.32 | 662.02 | Weak Liquidity |
| ROA | 0.21% | -24409.00% (disorted) | Weak |
ABA.AX outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Auswide Bank Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-20.81%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-40.60%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
11.69%
Industry Style: Value, Dividend, Cyclical
High Growth