Aeris Resources Limited Fundamental Analysis (ASX: AIS.AX)
Aeris Resources Limited Fundamental Analysis (ASX: AIS.AX)
Aeris Resources Limited (ASX: AIS.AX) shows strong financial fundamentals with a PE ratio of 3.25, profit margin of 25.40%, and ROE of 33.93%. The company generates $0.9B in annual revenue with moderate year-over-year growth of 6.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AIS.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAIS.AX demonstrates superior asset utilization.
Valuation Score
ExcellentAIS.AX trades at attractive valuation levels.
Growth Score
ModerateAIS.AX shows steady but slowing expansion.
Financial Health Score
ExcellentAIS.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentAIS.AX achieves industry-leading margins.
Key Financial Metrics
Is AIS.AX Expensive or Cheap?
P/E Ratio
AIS.AX trades at 3.25 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AIS.AX's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Aeris Resources Limited at 0.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.76 times EBITDA. This is generally considered low.
How Well Does AIS.AX Make Money?
Net Profit Margin
For every $100 in sales, Aeris Resources Limited keeps $25.40 as profit after all expenses.
Operating Margin
Core operations generate 26.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.93 in profit for every $100 of shareholder equity.
ROA
Aeris Resources Limited generates $19.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aeris Resources Limited generates strong operating cash flow of $361.19M, reflecting robust business health.
Free Cash Flow
Aeris Resources Limited generates strong free cash flow of $156.06M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.10 in free cash annually.
FCF Yield
AIS.AX converts 15.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How AIS.AX Stacks Against Its Sector Peers
| Metric | AIS.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.25 | 26.74 | Better (Cheaper) |
| ROE | 33.93% | 1215.00% | Weak |
| Net Margin | 25.40% | 433.00% | Weak |
| Debt/Equity | 0.02 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.07 | 3.14 | Strong Liquidity |
| ROA | 19.28% | 2728.00% | Weak |
AIS.AX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aeris Resources Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.68%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
157.64%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
111.67%
Industry Style: Cyclical, Commodity, Value
High Growth