Entertainment Rewards Ltd
Entertainment Rewards Ltd Fundamental Analysis
Entertainment Rewards Ltd (EAT.AX) shows strong financial fundamentals with a PE ratio of -2.71, profit margin of -51.63%, and ROE of 67.74%. The company generates $0.0B in annual revenue with strong year-over-year growth of 13.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EAT.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakEAT.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEAT.AX trades at attractive valuation levels.
Growth Score
ModerateEAT.AX shows steady but slowing expansion.
Financial Health Score
ModerateEAT.AX shows balanced financial health with some risks.
Profitability Score
WeakEAT.AX struggles to sustain strong margins.
Key Financial Metrics
Is EAT.AX Expensive or Cheap?
P/E Ratio
EAT.AX trades at -2.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EAT.AX's PEG of -0.55 indicates potential undervaluation.
Price to Book
The market values Entertainment Rewards Ltd at -1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.01 times EBITDA. This is generally considered low.
How Well Does EAT.AX Make Money?
Net Profit Margin
For every $100 in sales, Entertainment Rewards Ltd keeps $-51.63 as profit after all expenses.
Operating Margin
Core operations generate 9.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $67.74 in profit for every $100 of shareholder equity.
ROA
Entertainment Rewards Ltd generates $-2.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Entertainment Rewards Ltd generates limited operating cash flow of $-7.22M, signaling weaker underlying cash strength.
Free Cash Flow
Entertainment Rewards Ltd generates weak or negative free cash flow of $-7.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.01 in free cash annually.
FCF Yield
EAT.AX converts -26.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
-1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.68
vs 25 benchmark
ROA
Return on assets percentage
-2.70
vs 25 benchmark
ROCE
Return on capital employed
-0.67
vs 25 benchmark
How EAT.AX Stacks Against Its Sector Peers
| Metric | EAT.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.71 | 34.36 | Better (Cheaper) |
| ROE | 67.74% | 1116.00% | Weak |
| Net Margin | -51.63% | -125900.00% (disorted) | Weak |
| Debt/Equity | -0.83 | 7.88 | Strong (Low Leverage) |
| Current Ratio | 0.49 | 5.74 | Weak Liquidity |
| ROA | -269.67% | -309000.00% (disorted) | Weak |
EAT.AX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Entertainment Rewards Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-88.82%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
90.17%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
87.84%
Industry Style: Growth, Innovation, High Beta
High Growth