Ashtead Group plc
Ashtead Group plc Fundamental Analysis
Ashtead Group plc (ASHGY) shows moderate financial fundamentals with a PE ratio of 21.65, profit margin of 13.09%, and ROE of 18.69%. The company generates $42.7B in annual revenue with weak year-over-year growth of -0.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ASHGY's fundamental strength across five key dimensions:
Efficiency Score
WeakASHGY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentASHGY trades at attractive valuation levels.
Growth Score
WeakASHGY faces weak or negative growth trends.
Financial Health Score
ModerateASHGY shows balanced financial health with some risks.
Profitability Score
ModerateASHGY maintains healthy but balanced margins.
Key Financial Metrics
Is ASHGY Expensive or Cheap?
P/E Ratio
ASHGY trades at 21.65 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ASHGY's PEG of -6.73 indicates potential undervaluation.
Price to Book
The market values Ashtead Group plc at 4.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 22.50 times EBITDA. This signals the market has high growth expectations.
How Well Does ASHGY Make Money?
Net Profit Margin
For every $100 in sales, Ashtead Group plc keeps $13.09 as profit after all expenses.
Operating Margin
Core operations generate 22.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.69 in profit for every $100 of shareholder equity.
ROA
Ashtead Group plc generates $6.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ashtead Group plc generates strong operating cash flow of $10.73B, reflecting robust business health.
Free Cash Flow
Ashtead Group plc generates strong free cash flow of $9.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.63 in free cash annually.
FCF Yield
ASHGY converts 1.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ASHGY Stacks Against Its Sector Peers
| Metric | ASHGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.65 | 25.22 | Better (Cheaper) |
| ROE | 18.69% | 1239.00% | Weak |
| Net Margin | 13.09% | -45860.00% (disorted) | Strong |
| Debt/Equity | 1.43 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.28 | 10.39 | Neutral |
| ROA | 6.44% | -1489876.00% (disorted) | Weak |
ASHGY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ashtead Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
124.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
114.81%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
131.39%
Industry Style: Cyclical, Value, Infrastructure
High Growth