Ariadne Australia Limited
Ariadne Australia Limited Fundamental Analysis
Ariadne Australia Limited (ARA.AX) shows moderate financial fundamentals with a PE ratio of 21.44, profit margin of 59.57%, and ROE of 2.68%. The company generates $0.0B in annual revenue with moderate year-over-year growth of 9.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.4/100 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 ARA.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakARA.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateARA.AX shows balanced valuation metrics.
Growth Score
ModerateARA.AX shows steady but slowing expansion.
Financial Health Score
ExcellentARA.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateARA.AX maintains healthy but balanced margins.
Key Financial Metrics
Is ARA.AX Expensive or Cheap?
P/E Ratio
ARA.AX trades at 21.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ARA.AX's PEG of 11.74 indicates potential overvaluation.
Price to Book
The market values Ariadne Australia Limited at 0.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.36 times EBITDA. This signals the market has high growth expectations.
How Well Does ARA.AX Make Money?
Net Profit Margin
For every $100 in sales, Ariadne Australia Limited keeps $59.57 as profit after all expenses.
Operating Margin
Core operations generate 25.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.68 in profit for every $100 of shareholder equity.
ROA
Ariadne Australia Limited generates $2.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ariadne Australia Limited generates limited operating cash flow of $-11.77M, signaling weaker underlying cash strength.
Free Cash Flow
Ariadne Australia Limited generates weak or negative free cash flow of $-11.77M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.06 in free cash annually.
FCF Yield
ARA.AX converts -12.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.010
vs 25 benchmark
How ARA.AX Stacks Against Its Sector Peers
| Metric | ARA.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.44 | 25.96 | Better (Cheaper) |
| ROE | 2.68% | 1263.00% | Weak |
| Net Margin | 59.57% | -41827.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.27 | 10.05 | Strong Liquidity |
| ROA | 2.19% | -1497918.00% (disorted) | Weak |
ARA.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 Ariadne Australia Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.80%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
159.95%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-201.87%
Industry Style: Cyclical, Value, Infrastructure
Declining