Duxton Water Limited Fundamental Analysis (ASX: D2O.AX)
Duxton Water Limited (ASX: D2O.AX) shows moderate financial fundamentals with a PE ratio of 25.50, profit margin of 37.57%, and ROE of 4.81%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze D2O.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakD2O.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateD2O.AX shows balanced valuation metrics.
Growth Score
ModerateD2O.AX shows steady but slowing expansion.
Financial Health Score
ModerateD2O.AX shows balanced financial health with some risks.
Profitability Score
WeakD2O.AX struggles to sustain strong margins.
Key Financial Metrics
Is D2O.AX Expensive or Cheap?
P/E Ratio
D2O.AX trades at 25.50 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, D2O.AX's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Duxton Water Limited at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.15 times EBITDA. This is generally considered low.
How Well Does D2O.AX Make Money?
Net Profit Margin
For every $100 in sales, Duxton Water Limited keeps $37.57 as profit after all expenses.
Operating Margin
Core operations generate 81.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.81 in profit for every $100 of shareholder equity.
ROA
Duxton Water Limited generates $2.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Duxton Water Limited generates limited operating cash flow of $-7.12M, signaling weaker underlying cash strength.
Free Cash Flow
Duxton Water Limited generates weak or negative free cash flow of $-35.01M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.23 in free cash annually.
FCF Yield
D2O.AX converts -14.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How D2O.AX Stacks Against Its Sector Peers
| Metric | D2O.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.50 | 19.10 | Worse (Expensive) |
| ROE | 4.81% | 980.00% | Weak |
| Net Margin | 37.57% | -544.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 1.72 | Strong (Low Leverage) |
| Current Ratio | 0.95 | 1.71 | Weak Liquidity |
| ROA | 2.98% | 289.00% | Weak |
D2O.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Duxton Water Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income