Arovella Therapeutics Limited
Arovella Therapeutics Limited Fundamental Analysis
Arovella Therapeutics Limited (ALA.AX) shows weak financial fundamentals with a PE ratio of -11.17, profit margin of 2.40%, and ROE of -40.65%. The company generates $-0.0B in annual revenue with weak year-over-year growth of -95.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -91.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ALA.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakALA.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateALA.AX shows balanced valuation metrics.
Growth Score
ModerateALA.AX shows steady but slowing expansion.
Financial Health Score
ExcellentALA.AX maintains a strong and stable balance sheet.
Profitability Score
WeakALA.AX struggles to sustain strong margins.
Key Financial Metrics
Is ALA.AX Expensive or Cheap?
P/E Ratio
ALA.AX trades at -11.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ALA.AX's PEG of 3.80 indicates potential overvaluation.
Price to Book
The market values Arovella Therapeutics Limited at 4.68 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -7.28 times EBITDA. This is generally considered low.
How Well Does ALA.AX Make Money?
Net Profit Margin
For every $100 in sales, Arovella Therapeutics Limited keeps $2.40 as profit after all expenses.
Operating Margin
Core operations generate 4.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-40.65 in profit for every $100 of shareholder equity.
ROA
Arovella Therapeutics Limited generates $-39.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arovella Therapeutics Limited generates strong operating cash flow of $-6.89M, reflecting robust business health.
Free Cash Flow
Arovella Therapeutics Limited generates strong free cash flow of $-6.99M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $-0.01 in free cash annually.
FCF Yield
ALA.AX converts -7.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-11.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
-27.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
15.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.41
vs 25 benchmark
ROA
Return on assets percentage
-0.39
vs 25 benchmark
ROCE
Return on capital employed
-0.84
vs 25 benchmark
How ALA.AX Stacks Against Its Sector Peers
| Metric | ALA.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -11.17 | 28.25 | Better (Cheaper) |
| ROE | -40.65% | 780.00% | Weak |
| Net Margin | 239.95% | -20122.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 15.36 | 4.66 | Strong Liquidity |
| ROA | -39.15% | -14687.00% (disorted) | Weak |
ALA.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arovella Therapeutics Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-99.83%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
86.13%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
65.76%
Industry Style: Defensive, Growth, Innovation
High Growth