Develop Global Limited
Develop Global Limited Fundamental Analysis
Develop Global Limited (DVP.AX) shows moderate financial fundamentals with a PE ratio of 21.60, profit margin of 31.22%, and ROE of 14.69%. The company generates $0.3B in annual revenue with weak year-over-year growth of 1.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DVP.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakDVP.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDVP.AX trades at attractive valuation levels.
Growth Score
ModerateDVP.AX shows steady but slowing expansion.
Financial Health Score
ExcellentDVP.AX maintains a strong and stable balance sheet.
Profitability Score
WeakDVP.AX struggles to sustain strong margins.
Key Financial Metrics
Is DVP.AX Expensive or Cheap?
P/E Ratio
DVP.AX trades at 21.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DVP.AX's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Develop Global Limited at 2.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 91.17 times EBITDA. This signals the market has high growth expectations.
How Well Does DVP.AX Make Money?
Net Profit Margin
For every $100 in sales, Develop Global Limited keeps $31.22 as profit after all expenses.
Operating Margin
Core operations generate 6.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.69 in profit for every $100 of shareholder equity.
ROA
Develop Global Limited generates $8.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Develop Global Limited generates limited operating cash flow of $15.45M, signaling weaker underlying cash strength.
Free Cash Flow
Develop Global Limited generates weak or negative free cash flow of $-58.86M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.18 in free cash annually.
FCF Yield
DVP.AX converts -2.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How DVP.AX Stacks Against Its Sector Peers
| Metric | DVP.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.60 | 26.70 | Better (Cheaper) |
| ROE | 14.69% | 828.00% | Weak |
| Net Margin | 31.22% | -122621.00% (disorted) | Strong |
| Debt/Equity | 0.25 | 0.42 | Strong (Low Leverage) |
| Current Ratio | 2.63 | 4.90 | Strong Liquidity |
| ROA | 8.06% | -6867.00% (disorted) | Weak |
DVP.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Develop Global Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
262921.02%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-325.49%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
1292.03%
Industry Style: Cyclical, Commodity, Value
High Growth