Develop Global Limited Fundamental Analysis (ASX: DVP.AX)
Develop Global Limited Fundamental Analysis (ASX: DVP.AX)
Develop Global Limited (ASX: DVP.AX) shows weak financial fundamentals with a PE ratio of 173.31, profit margin of 2.11%, and ROE of 1.25%. The company generates $0.4B in annual revenue with strong year-over-year growth of 57.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
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
ModerateDVP.AX shows balanced valuation metrics.
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 173.31 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DVP.AX's PEG of -1.91 indicates potential undervaluation.
Price to Book
The market values Develop Global Limited at 2.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 36.12 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 $2.11 as profit after all expenses.
Operating Margin
Core operations generate 3.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.25 in profit for every $100 of shareholder equity.
ROA
Develop Global Limited generates $0.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Develop Global Limited produces operating cash flow of $52.04M, showing steady but balanced cash generation.
Free Cash Flow
Develop Global Limited generates weak or negative free cash flow of $-13.64M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.04 in free cash annually.
FCF Yield
DVP.AX converts -0.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
173.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.008
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 | 173.31 | 25.32 | Worse (Expensive) |
| ROE | 1.25% | 1259.00% | Weak |
| Net Margin | 2.11% | 434.00% | Weak |
| Debt/Equity | 0.21 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 1.55 | 3.14 | Neutral |
| ROA | 0.84% | 2662.00% | Weak |
DVP.AX 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 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
1116118.88%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
1580.67%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
495.35%
Industry Style: Cyclical, Commodity, Value
High Growth