Dropsuite Limited
Dropsuite Limited Fundamental Analysis
Dropsuite Limited (DSE.AX) shows weak financial fundamentals with a PE ratio of 495.78, profit margin of 2.01%, and ROE of 2.84%. The company generates $0.0B in annual revenue with strong year-over-year growth of 34.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DSE.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakDSE.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateDSE.AX shows balanced valuation metrics.
Growth Score
ModerateDSE.AX shows steady but slowing expansion.
Financial Health Score
ExcellentDSE.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateDSE.AX maintains healthy but balanced margins.
Key Financial Metrics
Is DSE.AX Expensive or Cheap?
P/E Ratio
DSE.AX trades at 495.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DSE.AX's PEG of 1.09 indicates fair valuation.
Price to Book
The market values Dropsuite Limited at 13.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 670.03 times EBITDA. This signals the market has high growth expectations.
How Well Does DSE.AX Make Money?
Net Profit Margin
For every $100 in sales, Dropsuite Limited keeps $2.01 as profit after all expenses.
Operating Margin
Core operations generate 1.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.84 in profit for every $100 of shareholder equity.
ROA
Dropsuite Limited generates $2.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dropsuite Limited produces operating cash flow of $4.23M, showing steady but balanced cash generation.
Free Cash Flow
Dropsuite Limited produces free cash flow of $4.03M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
DSE.AX converts 0.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
495.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How DSE.AX Stacks Against Its Sector Peers
| Metric | DSE.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 495.78 | 33.98 | Worse (Expensive) |
| ROE | 2.84% | 1007.00% | Weak |
| Net Margin | 2.01% | -47798.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 6.03 | 5.66 | Strong Liquidity |
| ROA | 2.22% | -287356.00% (disorted) | Weak |
DSE.AX outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dropsuite Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
519.64%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
119.52%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
248.86%
Industry Style: Growth, Innovation, High Beta
High Growth