Aurizon Holdings Limited
Aurizon Holdings Limited Fundamental Analysis
Aurizon Holdings Limited (AZJ.AX) shows weak financial fundamentals with a PE ratio of 23.74, profit margin of 7.68%, and ROE of 7.42%. The company generates $3.8B in annual revenue with moderate year-over-year growth of 9.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AZJ.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakAZJ.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAZJ.AX trades at attractive valuation levels.
Growth Score
ExcellentAZJ.AX delivers strong and consistent growth momentum.
Financial Health Score
WeakAZJ.AX carries high financial risk with limited liquidity.
Profitability Score
WeakAZJ.AX struggles to sustain strong margins.
Key Financial Metrics
Is AZJ.AX Expensive or Cheap?
P/E Ratio
AZJ.AX trades at 23.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AZJ.AX's PEG of -1.31 indicates potential undervaluation.
Price to Book
The market values Aurizon Holdings Limited at 1.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.20 times EBITDA. This is generally considered low.
How Well Does AZJ.AX Make Money?
Net Profit Margin
For every $100 in sales, Aurizon Holdings Limited keeps $7.68 as profit after all expenses.
Operating Margin
Core operations generate 20.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.42 in profit for every $100 of shareholder equity.
ROA
Aurizon Holdings Limited generates $2.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aurizon Holdings Limited generates strong operating cash flow of $1.08B, reflecting robust business health.
Free Cash Flow
Aurizon Holdings Limited generates strong free cash flow of $420.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.25 in free cash annually.
FCF Yield
AZJ.AX converts 6.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How AZJ.AX Stacks Against Its Sector Peers
| Metric | AZJ.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.74 | 26.34 | Neutral |
| ROE | 7.42% | 1277.00% | Weak |
| Net Margin | 7.68% | -41677.00% (disorted) | Weak |
| Debt/Equity | 1.26 | 0.71 | Weak (High Leverage) |
| Current Ratio | 0.57 | 10.10 | Weak Liquidity |
| ROA | 2.63% | -1507984.00% (disorted) | Weak |
AZJ.AX outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aurizon Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.67%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-7.88%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
6.75%
Industry Style: Cyclical, Value, Infrastructure
Growing