Domain Holdings Australia Limited
Domain Holdings Australia Limited Fundamental Analysis
Domain Holdings Australia Limited (DHG.AX) shows moderate financial fundamentals with a PE ratio of 65.74, profit margin of 10.85%, and ROE of 3.87%. The company generates $0.4B in annual revenue with strong year-over-year growth of 13.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DHG.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakDHG.AX struggles to generate sufficient returns from assets.
Valuation Score
WeakDHG.AX trades at a premium to fair value.
Growth Score
ExcellentDHG.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentDHG.AX maintains a strong and stable balance sheet.
Profitability Score
WeakDHG.AX struggles to sustain strong margins.
Key Financial Metrics
Is DHG.AX Expensive or Cheap?
P/E Ratio
DHG.AX trades at 65.74 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DHG.AX's PEG of 2.51 indicates potential overvaluation.
Price to Book
The market values Domain Holdings Australia Limited at 2.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.17 times EBITDA. This signals the market has high growth expectations.
How Well Does DHG.AX Make Money?
Net Profit Margin
For every $100 in sales, Domain Holdings Australia Limited keeps $10.85 as profit after all expenses.
Operating Margin
Core operations generate 23.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.87 in profit for every $100 of shareholder equity.
ROA
Domain Holdings Australia Limited generates $2.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Domain Holdings Australia Limited generates strong operating cash flow of $117.95M, reflecting robust business health.
Free Cash Flow
Domain Holdings Australia Limited generates strong free cash flow of $80.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
DHG.AX converts 2.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
65.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How DHG.AX Stacks Against Its Sector Peers
| Metric | DHG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 65.74 | 22.85 | Worse (Expensive) |
| ROE | 3.87% | 996.00% | Weak |
| Net Margin | 10.85% | -61402.00% (disorted) | Strong |
| Debt/Equity | 0.18 | 1.12 | Strong (Low Leverage) |
| Current Ratio | 1.16 | 1.65 | Neutral |
| ROA | 2.86% | -583089.00% (disorted) | Weak |
DHG.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 Domain Holdings Australia Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.91%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
128.41%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
42.24%
Industry Style: Growth, Technology, Streaming
High Growth