Echelon Resources Limited
Echelon Resources Limited Fundamental Analysis
Echelon Resources Limited (ECH.AX) shows weak financial fundamentals with a PE ratio of 31.58, profit margin of 2.80%, and ROE of 2.32%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ECH.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakECH.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateECH.AX shows balanced valuation metrics.
Growth Score
ModerateECH.AX shows steady but slowing expansion.
Financial Health Score
ExcellentECH.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateECH.AX maintains healthy but balanced margins.
Key Financial Metrics
Is ECH.AX Expensive or Cheap?
P/E Ratio
ECH.AX trades at 31.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ECH.AX's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Echelon Resources Limited at 0.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.80 times EBITDA. This is generally considered low.
How Well Does ECH.AX Make Money?
Net Profit Margin
For every $100 in sales, Echelon Resources Limited keeps $2.80 as profit after all expenses.
Operating Margin
Core operations generate 22.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.32 in profit for every $100 of shareholder equity.
ROA
Echelon Resources Limited generates $1.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Echelon Resources Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Echelon Resources Limited generates strong free cash flow of $51.13M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.23 in free cash annually.
FCF Yield
ECH.AX converts 47.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ECH.AX Stacks Against Its Sector Peers
| Metric | ECH.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.58 | 21.19 | Worse (Expensive) |
| ROE | 2.32% | 948.00% | Weak |
| Net Margin | 2.80% | -73259.00% (disorted) | Weak |
| Debt/Equity | 0.36 | -0.48 (disorted) | Distorted |
| Current Ratio | 2.76 | 6.31 | Strong Liquidity |
| ROA | 1.07% | -10913945.00% (disorted) | Weak |
ECH.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 Echelon Resources Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity