AJ Lucas Group Limited
AJ Lucas Group Limited Fundamental Analysis
AJ Lucas Group Limited (AJL.AX) shows moderate financial fundamentals with a PE ratio of 0.45, profit margin of 25.64%, and ROE of -64.80%. The company generates $0.1B in annual revenue with weak year-over-year growth of -8.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -10.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AJL.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAJL.AX demonstrates superior asset utilization.
Valuation Score
ExcellentAJL.AX trades at attractive valuation levels.
Growth Score
WeakAJL.AX faces weak or negative growth trends.
Financial Health Score
ModerateAJL.AX shows balanced financial health with some risks.
Profitability Score
ModerateAJL.AX maintains healthy but balanced margins.
Key Financial Metrics
Is AJL.AX Expensive or Cheap?
P/E Ratio
AJL.AX trades at 0.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AJL.AX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values AJ Lucas Group Limited at -0.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.67 times EBITDA. This is generally considered low.
How Well Does AJL.AX Make Money?
Net Profit Margin
For every $100 in sales, AJ Lucas Group Limited keeps $25.64 as profit after all expenses.
Operating Margin
Core operations generate 8.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-64.80 in profit for every $100 of shareholder equity.
ROA
AJ Lucas Group Limited generates $41.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AJ Lucas Group Limited produces operating cash flow of $29.57M, showing steady but balanced cash generation.
Free Cash Flow
AJ Lucas Group Limited generates strong free cash flow of $20.94M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
AJL.AX converts 1.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.65
vs 25 benchmark
ROA
Return on assets percentage
0.41
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How AJL.AX Stacks Against Its Sector Peers
| Metric | AJL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.45 | 21.19 | Better (Cheaper) |
| ROE | -64.80% | 948.00% | Weak |
| Net Margin | 25.64% | -73259.00% (disorted) | Strong |
| Debt/Equity | -2.47 | -0.48 (disorted) | Distorted |
| Current Ratio | 0.65 | 6.31 | Weak Liquidity |
| ROA | 41.45% | -10913945.00% (disorted) | Strong |
AJL.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AJ Lucas Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-26.40%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
-25.31%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
383.73%
Industry Style: Cyclical, Value, Commodity
High Growth