Compumedics Limited Fundamental Analysis (ASX: CMP.AX)
Compumedics Limited (ASX: CMP.AX) shows weak financial fundamentals with a PE ratio of 209.09, profit margin of 0.36%, and ROE of 0.93%. The company generates $0.1B in annual revenue with weak year-over-year growth of 2.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CMP.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakCMP.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateCMP.AX shows balanced valuation metrics.
Growth Score
WeakCMP.AX faces weak or negative growth trends.
Financial Health Score
ExcellentCMP.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateCMP.AX maintains healthy but balanced margins.
Key Financial Metrics
Is CMP.AX Expensive or Cheap?
P/E Ratio
CMP.AX trades at 209.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CMP.AX's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values Compumedics Limited at 2.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.53 times EBITDA. This is generally considered low.
How Well Does CMP.AX Make Money?
Net Profit Margin
For every $100 in sales, Compumedics Limited keeps $0.36 as profit after all expenses.
Operating Margin
Core operations generate 2.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.93 in profit for every $100 of shareholder equity.
ROA
Compumedics Limited generates $0.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Compumedics Limited produces operating cash flow of $6.17M, showing steady but balanced cash generation.
Free Cash Flow
Compumedics Limited generates strong free cash flow of $6.00M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
CMP.AX converts 13.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
209.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How CMP.AX Stacks Against Its Sector Peers
| Metric | CMP.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 209.09 | 31.14 | Worse (Expensive) |
| ROE | 0.93% | 554.00% | Weak |
| Net Margin | 0.36% | 5163.00% | Weak |
| Debt/Equity | 0.62 | 0.01 | Weak (High Leverage) |
| Current Ratio | 1.23 | 5.75 | Neutral |
| ROA | 0.38% | -245.00% (disorted) | Weak |
CMP.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Compumedics Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.90%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
78.76%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-87.67%
Industry Style: Defensive, Growth, Innovation
Declining