The Edinburgh Investment Trust plc
The Edinburgh Investment Trust plc Fundamental Analysis
The Edinburgh Investment Trust plc (EHITF) shows moderate financial fundamentals with a PE ratio of 14.04, profit margin of 90.55%, and ROE of 7.39%. The company generates $0.1B in annual revenue with weak year-over-year growth of -32.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EHITF's fundamental strength across five key dimensions:
Efficiency Score
WeakEHITF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEHITF trades at attractive valuation levels.
Growth Score
WeakEHITF faces weak or negative growth trends.
Financial Health Score
ExcellentEHITF maintains a strong and stable balance sheet.
Profitability Score
ModerateEHITF maintains healthy but balanced margins.
Key Financial Metrics
Is EHITF Expensive or Cheap?
P/E Ratio
EHITF trades at 14.04 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EHITF's PEG of -0.34 indicates potential undervaluation.
Price to Book
The market values The Edinburgh Investment Trust plc at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.40 times EBITDA. This signals the market has high growth expectations.
How Well Does EHITF Make Money?
Net Profit Margin
For every $100 in sales, The Edinburgh Investment Trust plc keeps $90.55 as profit after all expenses.
Operating Margin
Core operations generate 93.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.39 in profit for every $100 of shareholder equity.
ROA
The Edinburgh Investment Trust plc generates $6.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Edinburgh Investment Trust plc generates strong operating cash flow of $63.89M, reflecting robust business health.
Free Cash Flow
The Edinburgh Investment Trust plc generates strong free cash flow of $63.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.48 in free cash annually.
FCF Yield
EHITF converts 6.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
20.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How EHITF Stacks Against Its Sector Peers
| Metric | EHITF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.04 | 18.50 | Better (Cheaper) |
| ROE | 7.39% | 809.00% | Weak |
| Net Margin | 90.55% | 2211.00% | Weak |
| Debt/Equity | 0.11 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 20.61 | 691.82 | Strong Liquidity |
| ROA | 6.85% | -24320.00% (disorted) | Weak |
EHITF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Edinburgh Investment Trust plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
133.90%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
131.94%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
Declining