Alkane Resources Limited
Alkane Resources Limited Fundamental Analysis
Alkane Resources Limited (ALKEF) shows moderate financial fundamentals with a PE ratio of 31.87, 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 63.0/100 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 ALKEF's fundamental strength across five key dimensions:
Efficiency Score
WeakALKEF struggles to generate sufficient returns from assets.
Valuation Score
ModerateALKEF shows balanced valuation metrics.
Growth Score
ExcellentALKEF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentALKEF maintains a strong and stable balance sheet.
Profitability Score
WeakALKEF struggles to sustain strong margins.
Key Financial Metrics
Is ALKEF Expensive or Cheap?
P/E Ratio
ALKEF trades at 31.87 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALKEF's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Alkane Resources Limited at 3.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.07 times EBITDA. This signals the market has high growth expectations.
How Well Does ALKEF 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 16.04 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 $6.36 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 $160.15M, reflecting robust business health.
Free Cash Flow
Alkane Resources Limited generates weak or negative free cash flow of $-8.04M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.01 in free cash annually.
FCF Yield
ALKEF converts -0.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.93
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
0.10
vs 25 benchmark
How ALKEF Stacks Against Its Sector Peers
| Metric | ALKEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.87 | 27.01 | Worse (Expensive) |
| ROE | 9.92% | 949.00% | Weak |
| Net Margin | 12.59% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 1.08 | 4.42 | Neutral |
| ROA | 6.36% | -6411.00% (disorted) | Weak |
ALKEF 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