Alkane Resources Limited Fundamental Analysis
Alkane Resources Limited (ALK.AX) shows moderate financial fundamentals with a PE ratio of 19.97, profit margin of 15.56%, and ROE of 12.77%. 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 74.3/100 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 ALK.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakALK.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentALK.AX trades at attractive valuation levels.
Growth Score
ExcellentALK.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentALK.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateALK.AX maintains healthy but balanced margins.
Key Financial Metrics
Is ALK.AX Expensive or Cheap?
P/E Ratio
ALK.AX trades at 19.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ALK.AX's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Alkane Resources Limited at 1.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.42 times EBITDA. This is generally considered low.
How Well Does ALK.AX Make Money?
Net Profit Margin
For every $100 in sales, Alkane Resources Limited keeps $15.56 as profit after all expenses.
Operating Margin
Core operations generate 24.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.77 in profit for every $100 of shareholder equity.
ROA
Alkane Resources Limited generates $6.21 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 $217.51M, reflecting robust business health.
Free Cash Flow
Alkane Resources Limited generates strong free cash flow of $152.69M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.11 in free cash annually.
FCF Yield
ALK.AX converts 7.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How ALK.AX Stacks Against Its Sector Peers
| Metric | ALK.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.97 | 27.00 | Better (Cheaper) |
| ROE | 12.77% | 1027.00% | Weak |
| Net Margin | 15.56% | -908.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.64 | Strong (Low Leverage) |
| Current Ratio | 2.02 | 3.19 | Strong Liquidity |
| ROA | 6.21% | 569.00% | Weak |
ALK.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 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