A&W Revenue Royalties Income Fund Fundamental Analysis (TSX: AW-UN.TO)
A&W Revenue Royalties Income Fund Fundamental Analysis (TSX: AW-UN.TO)
A&W Revenue Royalties Income Fund (TSX: AW-UN.TO) shows moderate financial fundamentals with a PE ratio of 18.37, profit margin of 58.74%, and ROE of 14.56%. 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 75.1/100 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 AW-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakAW-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAW-UN.TO trades at attractive valuation levels.
Growth Score
ModerateAW-UN.TO shows steady but slowing expansion.
Financial Health Score
ExcellentAW-UN.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateAW-UN.TO maintains healthy but balanced margins.
Key Financial Metrics
Is AW-UN.TO Expensive or Cheap?
P/E Ratio
AW-UN.TO trades at 18.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AW-UN.TO's PEG of -12.37 indicates potential undervaluation.
Price to Book
The market values A&W Revenue Royalties Income Fund at 2.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.21 times EBITDA. This is generally considered low.
How Well Does AW-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, A&W Revenue Royalties Income Fund keeps $58.74 as profit after all expenses.
Operating Margin
Core operations generate 96.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.56 in profit for every $100 of shareholder equity.
ROA
A&W Revenue Royalties Income Fund generates $7.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
A&W Revenue Royalties Income Fund generates strong operating cash flow of $30.98M, reflecting robust business health.
Free Cash Flow
A&W Revenue Royalties Income Fund generates strong free cash flow of $30.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.12 in free cash annually.
FCF Yield
AW-UN.TO converts 6.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How AW-UN.TO Stacks Against Its Sector Peers
| Metric | AW-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.37 | 25.50 | Better (Cheaper) |
| ROE | 14.56% | 964.00% | Weak |
| Net Margin | 58.74% | -4901.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 5.89 | 2.34 | Strong Liquidity |
| ROA | 7.62% | 322.00% | Weak |
AW-UN.TO 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 A&W Revenue Royalties Income Fund'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, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary