Barloworld Limited
Barloworld Limited Fundamental Analysis
Barloworld Limited (BRRAY) shows weak financial fundamentals with a PE ratio of 34.96, profit margin of 3.94%, and ROE of 8.29%. The company generates $36.3B in annual revenue with weak year-over-year growth of -6.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BRRAY's fundamental strength across five key dimensions:
Efficiency Score
WeakBRRAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateBRRAY shows balanced valuation metrics.
Growth Score
WeakBRRAY faces weak or negative growth trends.
Financial Health Score
ExcellentBRRAY maintains a strong and stable balance sheet.
Profitability Score
WeakBRRAY struggles to sustain strong margins.
Key Financial Metrics
Is BRRAY Expensive or Cheap?
P/E Ratio
BRRAY trades at 34.96 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BRRAY's PEG of -0.12 indicates potential undervaluation.
Price to Book
The market values Barloworld Limited at 2.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.44 times EBITDA. This signals the market has high growth expectations.
How Well Does BRRAY Make Money?
Net Profit Margin
For every $100 in sales, Barloworld Limited keeps $3.94 as profit after all expenses.
Operating Margin
Core operations generate 8.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.29 in profit for every $100 of shareholder equity.
ROA
Barloworld Limited generates $3.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Barloworld Limited generates limited operating cash flow of $2.17B, signaling weaker underlying cash strength.
Free Cash Flow
Barloworld Limited produces free cash flow of $1.66B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $8.84 in free cash annually.
FCF Yield
BRRAY converts 3.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How BRRAY Stacks Against Its Sector Peers
| Metric | BRRAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.96 | 25.22 | Worse (Expensive) |
| ROE | 8.29% | 1239.00% | Weak |
| Net Margin | 3.94% | -45860.00% (disorted) | Weak |
| Debt/Equity | 0.57 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.29 | 10.39 | Neutral |
| ROA | 3.20% | -1489876.00% (disorted) | Weak |
BRRAY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Barloworld Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
Declining