Austral Resources Australia Ltd Fundamental Analysis
Austral Resources Australia Ltd (AR1.AX) shows weak financial fundamentals with a PE ratio of 10.43, profit margin of 3.36%, and ROE of -1.18%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -115.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AR1.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAR1.AX demonstrates superior asset utilization.
Valuation Score
ExcellentAR1.AX trades at attractive valuation levels.
Growth Score
ModerateAR1.AX shows steady but slowing expansion.
Financial Health Score
ExcellentAR1.AX maintains a strong and stable balance sheet.
Profitability Score
WeakAR1.AX struggles to sustain strong margins.
Key Financial Metrics
Is AR1.AX Expensive or Cheap?
P/E Ratio
AR1.AX trades at 10.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AR1.AX's PEG of -0.08 indicates potential undervaluation.
Price to Book
The market values Austral Resources Australia Ltd at 1.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -12.18 times EBITDA. This is generally considered low.
How Well Does AR1.AX Make Money?
Net Profit Margin
For every $100 in sales, Austral Resources Australia Ltd keeps $3.36 as profit after all expenses.
Operating Margin
Core operations generate -66.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.18 in profit for every $100 of shareholder equity.
ROA
Austral Resources Australia Ltd generates $10.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Austral Resources Australia Ltd generates limited operating cash flow of $-14.25M, signaling weaker underlying cash strength.
Free Cash Flow
Austral Resources Australia Ltd generates weak or negative free cash flow of $-15.32M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.03 in free cash annually.
FCF Yield
AR1.AX converts -48.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.18
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
-0.02
vs 25 benchmark
How AR1.AX Stacks Against Its Sector Peers
| Metric | AR1.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.43 | 27.70 | Better (Cheaper) |
| ROE | -118.27% | 1061.00% | Weak |
| Net Margin | 336.47% | -1600.00% (disorted) | Strong |
| Debt/Equity | 0.63 | 0.60 | Neutral |
| Current Ratio | 2.14 | 3.22 | Strong Liquidity |
| ROA | 10.33% | 535.00% | Weak |
AR1.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 Austral Resources Australia Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value