Alkane Resources Limited
Alkane Resources Limited Fundamental Analysis
Alkane Resources Limited (ALK.AX) shows moderate financial fundamentals with a PE ratio of 28.41, profit margin of 12.59%, and ROE of 9.92%. The company generates $0.6B in annual revenue with strong year-over-year growth of 51.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.1/100 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 ALK.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakALK.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateALK.AX shows balanced valuation metrics.
Growth Score
ExcellentALK.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentALK.AX maintains a strong and stable balance sheet.
Profitability Score
WeakALK.AX struggles to sustain strong margins.
Key Financial Metrics
Is ALK.AX Expensive or Cheap?
P/E Ratio
ALK.AX trades at 28.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ALK.AX's PEG of 0.36 indicates potential undervaluation.
Price to Book
The market values Alkane Resources Limited at 2.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.78 times EBITDA. This signals the market has high growth expectations.
How Well Does ALK.AX Make Money?
Net Profit Margin
For every $100 in sales, Alkane Resources Limited keeps $12.59 as profit after all expenses.
Operating Margin
Core operations generate 15.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.92 in profit for every $100 of shareholder equity.
ROA
Alkane Resources Limited generates $6.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alkane Resources Limited generates strong operating cash flow of $162.39M, reflecting robust business health.
Free Cash Flow
Alkane Resources Limited produces free cash flow of $24.98M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
ALK.AX converts 0.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ALK.AX Stacks Against Its Sector Peers
| Metric | ALK.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.41 | 24.91 | Worse (Expensive) |
| ROE | 9.92% | 840.00% | Weak |
| Net Margin | 12.59% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 1.08 | 4.94 | Neutral |
| ROA | 6.08% | -4176.00% (disorted) | Weak |
ALK.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alkane Resources Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
227.14%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
134.22%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
128.18%
Industry Style: Cyclical, Commodity, Value
High Growth