DPM Metals Inc. Fundamental Analysis (ASX: DPM.AX)
DPM Metals Inc. (ASX: DPM.AX) shows strong financial fundamentals with a PE ratio of 16.02, profit margin of 50.26%, and ROE of 24.56%. The company generates $1.3B in annual revenue with strong year-over-year growth of 56.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.0/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze DPM.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDPM.AX demonstrates superior asset utilization.
Valuation Score
ExcellentDPM.AX trades at attractive valuation levels.
Growth Score
ExcellentDPM.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentDPM.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentDPM.AX achieves industry-leading margins.
Key Financial Metrics
Is DPM.AX Expensive or Cheap?
P/E Ratio
DPM.AX trades at 16.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DPM.AX's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values DPM Metals Inc. at 3.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.56 times EBITDA. This signals the market has high growth expectations.
How Well Does DPM.AX Make Money?
Net Profit Margin
For every $100 in sales, DPM Metals Inc. keeps $50.26 as profit after all expenses.
Operating Margin
Core operations generate 54.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.56 in profit for every $100 of shareholder equity.
ROA
DPM Metals Inc. generates $19.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DPM Metals Inc. generates strong operating cash flow of $767.73M, reflecting robust business health.
Free Cash Flow
DPM Metals Inc. generates strong free cash flow of $744.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.37 in free cash annually.
FCF Yield
DPM.AX converts 6.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How DPM.AX Stacks Against Its Sector Peers
| Metric | DPM.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.02 | 27.37 | Better (Cheaper) |
| ROE | 24.56% | 1190.00% | Weak |
| Net Margin | 50.26% | 204.00% | Weak |
| Debt/Equity | 0.00 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 6.31 | 3.14 | Strong Liquidity |
| ROA | 19.63% | 2758.00% | Weak |
DPM.AX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DPM Metals Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.18%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
42.77%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
150.78%
Industry Style: Cyclical, Commodity, Value
High Growth