Currys plc
Currys plc Fundamental Analysis
Currys plc (DSITF) shows weak financial fundamentals with a PE ratio of 12.12, profit margin of 1.46%, and ROE of 5.89%. The company generates $8.8B in annual revenue with weak year-over-year growth of -10.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DSITF's fundamental strength across five key dimensions:
Efficiency Score
WeakDSITF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDSITF trades at attractive valuation levels.
Growth Score
WeakDSITF faces weak or negative growth trends.
Financial Health Score
ModerateDSITF shows balanced financial health with some risks.
Profitability Score
WeakDSITF struggles to sustain strong margins.
Key Financial Metrics
Is DSITF Expensive or Cheap?
P/E Ratio
DSITF trades at 12.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DSITF's PEG of 1.06 indicates fair valuation.
Price to Book
The market values Currys plc at 0.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.34 times EBITDA. This is generally considered low.
How Well Does DSITF Make Money?
Net Profit Margin
For every $100 in sales, Currys plc keeps $1.46 as profit after all expenses.
Operating Margin
Core operations generate -40.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.89 in profit for every $100 of shareholder equity.
ROA
Currys plc generates $2.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Currys plc generates limited operating cash flow of $442.90M, signaling weaker underlying cash strength.
Free Cash Flow
Currys plc produces free cash flow of $340.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.32 in free cash annually.
FCF Yield
DSITF converts 22.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-1.19
vs 25 benchmark
How DSITF Stacks Against Its Sector Peers
| Metric | DSITF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.12 | 24.85 | Better (Cheaper) |
| ROE | 5.89% | 1165.00% | Weak |
| Net Margin | 1.46% | 749.00% | Weak |
| Debt/Equity | 0.40 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 0.87 | 9.23 | Weak Liquidity |
| ROA | 2.24% | 1271.00% | Weak |
DSITF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Currys plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-14.86%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
154.03%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
34.10%
Industry Style: Cyclical, Growth, Discretionary
High Growth