Bubs Australia Limited
Bubs Australia Limited Fundamental Analysis
Bubs Australia Limited (BUB.AX) shows moderate financial fundamentals with a PE ratio of 25.97, profit margin of 3.45%, and ROE of 8.70%. The company generates $0.1B in annual revenue with strong year-over-year growth of 28.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.9/100 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 BUB.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakBUB.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateBUB.AX shows balanced valuation metrics.
Growth Score
ModerateBUB.AX shows steady but slowing expansion.
Financial Health Score
ExcellentBUB.AX maintains a strong and stable balance sheet.
Profitability Score
WeakBUB.AX struggles to sustain strong margins.
Key Financial Metrics
Is BUB.AX Expensive or Cheap?
P/E Ratio
BUB.AX trades at 25.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BUB.AX's PEG of -0.80 indicates potential undervaluation.
Price to Book
The market values Bubs Australia Limited at 2.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.73 times EBITDA. This signals the market has high growth expectations.
How Well Does BUB.AX Make Money?
Net Profit Margin
For every $100 in sales, Bubs Australia Limited keeps $3.45 as profit after all expenses.
Operating Margin
Core operations generate 5.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.70 in profit for every $100 of shareholder equity.
ROA
Bubs Australia Limited generates $5.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bubs Australia Limited generates limited operating cash flow of $910.04K, signaling weaker underlying cash strength.
Free Cash Flow
Bubs Australia Limited generates weak or negative free cash flow of $504.41K, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
BUB.AX converts 0.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How BUB.AX Stacks Against Its Sector Peers
| Metric | BUB.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.97 | 22.37 | Worse (Expensive) |
| ROE | 8.70% | 1250.00% | Weak |
| Net Margin | 3.45% | -5464.00% (disorted) | Weak |
| Debt/Equity | 0.14 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 3.03 | 2.47 | Strong Liquidity |
| ROA | 5.47% | -192045.00% (disorted) | Weak |
BUB.AX outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bubs Australia Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.97%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
143.71%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
117.14%
Industry Style: Defensive, Dividend, Low Volatility
High Growth