AFT Pharmaceuticals Limited
AFT Pharmaceuticals Limited Fundamental Analysis
AFT Pharmaceuticals Limited (AFP.AX) shows moderate financial fundamentals with a PE ratio of 26.22, profit margin of 5.80%, and ROE of 14.12%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 5.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AFP.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakAFP.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateAFP.AX shows balanced valuation metrics.
Growth Score
ModerateAFP.AX shows steady but slowing expansion.
Financial Health Score
ExcellentAFP.AX maintains a strong and stable balance sheet.
Profitability Score
WeakAFP.AX struggles to sustain strong margins.
Key Financial Metrics
Is AFP.AX Expensive or Cheap?
P/E Ratio
AFP.AX trades at 26.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AFP.AX's PEG of 1.28 indicates fair valuation.
Price to Book
The market values AFT Pharmaceuticals Limited at 3.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.99 times EBITDA. This signals the market has high growth expectations.
How Well Does AFP.AX Make Money?
Net Profit Margin
For every $100 in sales, AFT Pharmaceuticals Limited keeps $5.80 as profit after all expenses.
Operating Margin
Core operations generate 9.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.12 in profit for every $100 of shareholder equity.
ROA
AFT Pharmaceuticals Limited generates $6.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AFT Pharmaceuticals Limited generates limited operating cash flow of $-11.83M, signaling weaker underlying cash strength.
Free Cash Flow
AFT Pharmaceuticals Limited generates weak or negative free cash flow of $-11.94M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.11 in free cash annually.
FCF Yield
AFP.AX converts -3.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How AFP.AX Stacks Against Its Sector Peers
| Metric | AFP.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.22 | 29.00 | Neutral |
| ROE | 14.12% | 721.00% | Weak |
| Net Margin | 5.80% | -53024.00% (disorted) | Weak |
| Debt/Equity | 0.49 | 0.38 | Weak (High Leverage) |
| Current Ratio | 2.24 | 4.01 | Strong Liquidity |
| ROA | 6.76% | -19875.00% (disorted) | Weak |
AFP.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 AFT Pharmaceuticals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.19%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-12.54%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
31.79%
Industry Style: Defensive, Growth, Innovation
High Growth