Charter Hall Long WALE REIT
Charter Hall Long WALE REIT Fundamental Analysis
Charter Hall Long WALE REIT (CLW.AX) shows weak financial fundamentals with a PE ratio of 10.80, profit margin of 1.39%, and ROE of 6.69%. The company generates $0.2B in annual revenue with weak year-over-year growth of -16.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CLW.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakCLW.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCLW.AX trades at attractive valuation levels.
Growth Score
WeakCLW.AX faces weak or negative growth trends.
Financial Health Score
ModerateCLW.AX shows balanced financial health with some risks.
Profitability Score
WeakCLW.AX struggles to sustain strong margins.
Key Financial Metrics
Is CLW.AX Expensive or Cheap?
P/E Ratio
CLW.AX trades at 10.80 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CLW.AX's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Charter Hall Long WALE REIT at 0.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.43 times EBITDA. This is generally considered low.
How Well Does CLW.AX Make Money?
Net Profit Margin
For every $100 in sales, Charter Hall Long WALE REIT keeps $1.39 as profit after all expenses.
Operating Margin
Core operations generate 73.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.69 in profit for every $100 of shareholder equity.
ROA
Charter Hall Long WALE REIT generates $4.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Charter Hall Long WALE REIT generates strong operating cash flow of $179.76M, reflecting robust business health.
Free Cash Flow
Charter Hall Long WALE REIT generates strong free cash flow of $179.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.25 in free cash annually.
FCF Yield
CLW.AX converts 7.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How CLW.AX Stacks Against Its Sector Peers
| Metric | CLW.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.80 | 22.50 | Better (Cheaper) |
| ROE | 6.69% | 700.00% | Weak |
| Net Margin | 138.64% | -37372.00% (disorted) | Strong |
| Debt/Equity | 0.55 | -20.81 (disorted) | Distorted |
| Current Ratio | 0.48 | 1949.79 | Weak Liquidity |
| ROA | 4.12% | -1322.00% (disorted) | Weak |
CLW.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Charter Hall Long WALE REIT's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.10%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-15.02%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
43.26%
Industry Style: Income, Inflation Hedge, REIT
High Growth