AECI Ltd Fundamental Analysis
AECI Ltd (AECLY) shows weak financial fundamentals with a PE ratio of 24.67, profit margin of 1.14%, and ROE of 3.05%. The company generates $30.9B in annual revenue with weak year-over-year growth of -10.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AECLY's fundamental strength across five key dimensions:
Efficiency Score
WeakAECLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAECLY trades at attractive valuation levels.
Growth Score
WeakAECLY faces weak or negative growth trends.
Financial Health Score
ExcellentAECLY maintains a strong and stable balance sheet.
Profitability Score
WeakAECLY struggles to sustain strong margins.
Key Financial Metrics
Is AECLY Expensive or Cheap?
P/E Ratio
AECLY trades at 24.67 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AECLY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values AECI Ltd at 0.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.65 times EBITDA. This is generally considered low.
How Well Does AECLY Make Money?
Net Profit Margin
For every $100 in sales, AECI Ltd keeps $1.14 as profit after all expenses.
Operating Margin
Core operations generate 7.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.05 in profit for every $100 of shareholder equity.
ROA
AECI Ltd generates $1.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AECI Ltd generates limited operating cash flow of $2.38B, signaling weaker underlying cash strength.
Free Cash Flow
AECI Ltd produces free cash flow of $1.57B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $14.85 in free cash annually.
FCF Yield
AECLY converts 17.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.004
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How AECLY Stacks Against Its Sector Peers
| Metric | AECLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.67 | 25.84 | Neutral |
| ROE | 3.05% | 1029.00% | Weak |
| Net Margin | 1.14% | -107065.00% (disorted) | Weak |
| Debt/Equity | 0.42 | 0.43 | Neutral |
| Current Ratio | 1.97 | 6.25 | Neutral |
| ROA | 1.45% | -5614.00% (disorted) | Weak |
AECLY outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AECI Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.48%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-121.56%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
35.64%
Industry Style: Cyclical, Commodity, Value
High Growth