Champion Iron Limited
Champion Iron Limited Fundamental Analysis
Champion Iron Limited (CIA.AX) shows moderate financial fundamentals with a PE ratio of 14.65, profit margin of 10.38%, and ROE of 12.63%. The company generates $1.8B in annual revenue with moderate year-over-year growth of 5.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CIA.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakCIA.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCIA.AX trades at attractive valuation levels.
Growth Score
ModerateCIA.AX shows steady but slowing expansion.
Financial Health Score
ExcellentCIA.AX maintains a strong and stable balance sheet.
Profitability Score
WeakCIA.AX struggles to sustain strong margins.
Key Financial Metrics
Is CIA.AX Expensive or Cheap?
P/E Ratio
CIA.AX trades at 14.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CIA.AX's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values Champion Iron Limited at 1.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.40 times EBITDA. This is generally considered low.
How Well Does CIA.AX Make Money?
Net Profit Margin
For every $100 in sales, Champion Iron Limited keeps $10.38 as profit after all expenses.
Operating Margin
Core operations generate 19.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.63 in profit for every $100 of shareholder equity.
ROA
Champion Iron Limited generates $5.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Champion Iron Limited produces operating cash flow of $431.01M, showing steady but balanced cash generation.
Free Cash Flow
Champion Iron Limited generates weak or negative free cash flow of $3.06M, restricting financial flexibility.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
CIA.AX converts 0.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CIA.AX Stacks Against Its Sector Peers
| Metric | CIA.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.65 | 24.08 | Better (Cheaper) |
| ROE | 12.63% | 921.00% | Weak |
| Net Margin | 10.38% | -113338.00% (disorted) | Strong |
| Debt/Equity | 0.76 | 0.53 | Weak (High Leverage) |
| Current Ratio | 2.56 | 5.09 | Strong Liquidity |
| ROA | 5.42% | -9816.00% (disorted) | Weak |
CIA.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Champion Iron Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
99.94%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
55.19%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-4.05%
Industry Style: Cyclical, Commodity, Value
Declining