Discovery Limited
Discovery Limited Fundamental Analysis
Discovery Limited (DCYHF) shows strong financial fundamentals with a PE ratio of 0.55, profit margin of 12.56%, and ROE of 15.62%. The company generates $1440.9B in annual revenue with strong year-over-year growth of 22.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DCYHF's fundamental strength across five key dimensions:
Efficiency Score
WeakDCYHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDCYHF trades at attractive valuation levels.
Growth Score
ExcellentDCYHF delivers strong and consistent growth momentum.
Financial Health Score
ModerateDCYHF shows balanced financial health with some risks.
Profitability Score
ModerateDCYHF maintains healthy but balanced margins.
Key Financial Metrics
Is DCYHF Expensive or Cheap?
P/E Ratio
DCYHF trades at 0.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DCYHF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Discovery Limited at 0.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.98 times EBITDA. This is generally considered low.
How Well Does DCYHF Make Money?
Net Profit Margin
For every $100 in sales, Discovery Limited keeps $12.56 as profit after all expenses.
Operating Margin
Core operations generate -4.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.62 in profit for every $100 of shareholder equity.
ROA
Discovery Limited generates $3.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Discovery Limited generates limited operating cash flow of $126.09B, signaling weaker underlying cash strength.
Free Cash Flow
Discovery Limited produces free cash flow of $120.80B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $180.49 in free cash annually.
FCF Yield
DCYHF converts 7.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How DCYHF Stacks Against Its Sector Peers
| Metric | DCYHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.55 | 19.11 | Better (Cheaper) |
| ROE | 15.62% | 821.00% | Weak |
| Net Margin | 12.56% | 1655.00% | Weak |
| Debt/Equity | 0.27 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 659.22 | Weak Liquidity |
| ROA | 3.02% | 1976.00% | Weak |
DCYHF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Discovery Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.53%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
5204.21%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
6.09%
Industry Style: Value, Dividend, Cyclical
Growing