Dr. Martens plc
Dr. Martens plc Fundamental Analysis
Dr. Martens plc (DRMTY) shows weak financial fundamentals with a PE ratio of 34.96, profit margin of 1.95%, and ROE of 4.40%. The company generates $0.8B in annual revenue with weak year-over-year growth of -12.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DRMTY's fundamental strength across five key dimensions:
Efficiency Score
WeakDRMTY struggles to generate sufficient returns from assets.
Valuation Score
ModerateDRMTY shows balanced valuation metrics.
Growth Score
WeakDRMTY faces weak or negative growth trends.
Financial Health Score
ModerateDRMTY shows balanced financial health with some risks.
Profitability Score
WeakDRMTY struggles to sustain strong margins.
Key Financial Metrics
Is DRMTY Expensive or Cheap?
P/E Ratio
DRMTY trades at 34.96 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DRMTY's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values Dr. Martens plc at 1.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.53 times EBITDA. This is generally considered low.
How Well Does DRMTY Make Money?
Net Profit Margin
For every $100 in sales, Dr. Martens plc keeps $1.95 as profit after all expenses.
Operating Margin
Core operations generate 9.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.40 in profit for every $100 of shareholder equity.
ROA
Dr. Martens plc generates $1.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dr. Martens plc produces operating cash flow of $164.96M, showing steady but balanced cash generation.
Free Cash Flow
Dr. Martens plc generates strong free cash flow of $155.66M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.32 in free cash annually.
FCF Yield
DRMTY converts 29.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How DRMTY Stacks Against Its Sector Peers
| Metric | DRMTY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.96 | 23.49 | Worse (Expensive) |
| ROE | 4.40% | 1160.00% | Weak |
| Net Margin | 1.95% | 672.00% | Weak |
| Debt/Equity | 1.21 | 0.73 | Weak (High Leverage) |
| Current Ratio | 2.18 | 2.56 | Strong Liquidity |
| ROA | 1.77% | -8277.00% (disorted) | Weak |
DRMTY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dr. Martens plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.37%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
103.49%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
51.64%
Industry Style: Cyclical, Growth, Discretionary
High Growth