Australian Clinical Labs Limited
Australian Clinical Labs Limited Fundamental Analysis
Australian Clinical Labs Limited (ACL.AX) shows moderate financial fundamentals with a PE ratio of 14.95, profit margin of 3.59%, and ROE of 16.35%. The company generates $0.7B in annual revenue with weak year-over-year growth of -0.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACL.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakACL.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentACL.AX trades at attractive valuation levels.
Growth Score
WeakACL.AX faces weak or negative growth trends.
Financial Health Score
WeakACL.AX carries high financial risk with limited liquidity.
Profitability Score
ModerateACL.AX maintains healthy but balanced margins.
Key Financial Metrics
Is ACL.AX Expensive or Cheap?
P/E Ratio
ACL.AX trades at 14.95 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ACL.AX's PEG of -0.90 indicates potential undervaluation.
Price to Book
The market values Australian Clinical Labs Limited at 2.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.35 times EBITDA. This is generally considered low.
How Well Does ACL.AX Make Money?
Net Profit Margin
For every $100 in sales, Australian Clinical Labs Limited keeps $3.59 as profit after all expenses.
Operating Margin
Core operations generate 21.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.35 in profit for every $100 of shareholder equity.
ROA
Australian Clinical Labs Limited generates $4.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Australian Clinical Labs Limited produces operating cash flow of $160.81M, showing steady but balanced cash generation.
Free Cash Flow
Australian Clinical Labs Limited generates strong free cash flow of $153.12M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.81 in free cash annually.
FCF Yield
ACL.AX converts 40.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.44
vs 25 benchmark
How ACL.AX Stacks Against Its Sector Peers
| Metric | ACL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.95 | 28.45 | Better (Cheaper) |
| ROE | 16.35% | 763.00% | Weak |
| Net Margin | 3.59% | -45265.00% (disorted) | Weak |
| Debt/Equity | 3.01 | 0.34 | Weak (High Leverage) |
| Current Ratio | 0.59 | 2795.60 | Weak Liquidity |
| ROA | 4.68% | -16588.00% (disorted) | Weak |
ACL.AX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Australian Clinical Labs Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.33%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
331.31%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
14496.78%
Industry Style: Defensive, Growth, Innovation
High Growth