Adore Beauty Group Limited
Adore Beauty Group Limited Fundamental Analysis
Adore Beauty Group Limited (ABY.AX) shows weak financial fundamentals with a PE ratio of 102.13, profit margin of 0.15%, and ROE of 0.80%. The company generates $0.2B in annual revenue with weak year-over-year growth of 1.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ABY.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakABY.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateABY.AX shows balanced valuation metrics.
Growth Score
WeakABY.AX faces weak or negative growth trends.
Financial Health Score
WeakABY.AX carries high financial risk with limited liquidity.
Profitability Score
WeakABY.AX struggles to sustain strong margins.
Key Financial Metrics
Is ABY.AX Expensive or Cheap?
P/E Ratio
ABY.AX trades at 102.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ABY.AX's PEG of -1.79 indicates potential undervaluation.
Price to Book
The market values Adore Beauty Group Limited at 0.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.55 times EBITDA. This is generally considered low.
How Well Does ABY.AX Make Money?
Net Profit Margin
For every $100 in sales, Adore Beauty Group Limited keeps $0.15 as profit after all expenses.
Operating Margin
Core operations generate 5.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.80 in profit for every $100 of shareholder equity.
ROA
Adore Beauty Group Limited generates $0.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adore Beauty Group Limited generates limited operating cash flow of $8.65M, signaling weaker underlying cash strength.
Free Cash Flow
Adore Beauty Group Limited generates weak or negative free cash flow of $-2.44M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.03 in free cash annually.
FCF Yield
ABY.AX converts -7.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
102.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.008
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How ABY.AX Stacks Against Its Sector Peers
| Metric | ABY.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 102.13 | 23.80 | Worse (Expensive) |
| ROE | 0.80% | 1105.00% | Weak |
| Net Margin | 0.15% | -512.00% (disorted) | Weak |
| Debt/Equity | 1.20 | 0.78 | Weak (High Leverage) |
| Current Ratio | 0.94 | 2.64 | Weak Liquidity |
| ROA | 0.29% | -8048.00% (disorted) | Weak |
ABY.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adore Beauty Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.41%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
162.02%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
74.33%
Industry Style: Cyclical, Growth, Discretionary
High Growth