African Rainbow Minerals Limited
African Rainbow Minerals Limited Fundamental Analysis
African Rainbow Minerals Limited (AFBOF) shows weak financial fundamentals with a PE ratio of 31.63, profit margin of 9.25%, and ROE of 2.18%. The company generates $13.8B in annual revenue with weak year-over-year growth of 2.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AFBOF's fundamental strength across five key dimensions:
Efficiency Score
WeakAFBOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateAFBOF shows balanced valuation metrics.
Growth Score
WeakAFBOF faces weak or negative growth trends.
Financial Health Score
ExcellentAFBOF maintains a strong and stable balance sheet.
Profitability Score
ModerateAFBOF maintains healthy but balanced margins.
Key Financial Metrics
Is AFBOF Expensive or Cheap?
P/E Ratio
AFBOF trades at 31.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AFBOF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values African Rainbow Minerals Limited at 0.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.26 times EBITDA. This signals the market has high growth expectations.
How Well Does AFBOF Make Money?
Net Profit Margin
For every $100 in sales, African Rainbow Minerals Limited keeps $9.25 as profit after all expenses.
Operating Margin
Core operations generate 12.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.18 in profit for every $100 of shareholder equity.
ROA
African Rainbow Minerals Limited generates $1.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
African Rainbow Minerals Limited generates strong operating cash flow of $7.74B, reflecting robust business health.
Free Cash Flow
African Rainbow Minerals Limited generates strong free cash flow of $5.13B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $26.62 in free cash annually.
FCF Yield
AFBOF converts 12.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How AFBOF Stacks Against Its Sector Peers
| Metric | AFBOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.63 | 24.91 | Worse (Expensive) |
| ROE | 2.18% | 840.00% | Weak |
| Net Margin | 9.25% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 4.15 | 4.94 | Strong Liquidity |
| ROA | 1.53% | -4176.00% (disorted) | Weak |
AFBOF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews African Rainbow Minerals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-0.59%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-91.73%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-65.81%
Industry Style: Cyclical, Commodity, Value
Declining