Adcock Ingram Holdings Limited
Adcock Ingram Holdings Limited Fundamental Analysis
Adcock Ingram Holdings Limited (AIHLF) shows moderate financial fundamentals with a PE ratio of 9.52, profit margin of 8.80%, and ROE of 15.09%. The company generates $11.9B in annual revenue with weak year-over-year growth of 1.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.1/100 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 AIHLF's fundamental strength across five key dimensions:
Efficiency Score
WeakAIHLF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAIHLF trades at attractive valuation levels.
Growth Score
WeakAIHLF faces weak or negative growth trends.
Financial Health Score
ExcellentAIHLF maintains a strong and stable balance sheet.
Profitability Score
ModerateAIHLF maintains healthy but balanced margins.
Key Financial Metrics
Is AIHLF Expensive or Cheap?
P/E Ratio
AIHLF trades at 9.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AIHLF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Adcock Ingram Holdings Limited at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.65 times EBITDA. This is generally considered low.
How Well Does AIHLF Make Money?
Net Profit Margin
For every $100 in sales, Adcock Ingram Holdings Limited keeps $8.80 as profit after all expenses.
Operating Margin
Core operations generate 11.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.09 in profit for every $100 of shareholder equity.
ROA
Adcock Ingram Holdings Limited generates $9.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adcock Ingram Holdings Limited generates limited operating cash flow of $998.30M, signaling weaker underlying cash strength.
Free Cash Flow
Adcock Ingram Holdings Limited produces free cash flow of $783.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.39 in free cash annually.
FCF Yield
AIHLF converts 6.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How AIHLF Stacks Against Its Sector Peers
| Metric | AIHLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.52 | 29.78 | Better (Cheaper) |
| ROE | 15.09% | 792.00% | Weak |
| Net Margin | 8.80% | -23280.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.25 | Strong (Low Leverage) |
| Current Ratio | 2.06 | 4.60 | Strong Liquidity |
| ROA | 9.83% | -18077.00% (disorted) | Weak |
AIHLF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adcock Ingram Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.83%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
46.96%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-4.79%
Industry Style: Defensive, Growth, Innovation
Declining