Echo IQ Limited
Echo IQ Limited Fundamental Analysis
Echo IQ Limited (EIQ.AX) shows weak financial fundamentals with a PE ratio of -36.94, profit margin of -172.77%, and ROE of -78.48%. The company generates $0.0B in annual revenue with weak year-over-year growth of 1.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -12986.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EIQ.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakEIQ.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateEIQ.AX shows balanced valuation metrics.
Growth Score
WeakEIQ.AX faces weak or negative growth trends.
Financial Health Score
ExcellentEIQ.AX maintains a strong and stable balance sheet.
Profitability Score
WeakEIQ.AX struggles to sustain strong margins.
Key Financial Metrics
Is EIQ.AX Expensive or Cheap?
P/E Ratio
EIQ.AX trades at -36.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EIQ.AX's PEG of 3.34 indicates potential overvaluation.
Price to Book
The market values Echo IQ Limited at 33.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -38.52 times EBITDA. This is generally considered low.
How Well Does EIQ.AX Make Money?
Net Profit Margin
For every $100 in sales, Echo IQ Limited keeps $-172.77 as profit after all expenses.
Operating Margin
Core operations generate -180.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-78.48 in profit for every $100 of shareholder equity.
ROA
Echo IQ Limited generates $-87.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Echo IQ Limited generates limited operating cash flow of $-8.41M, signaling weaker underlying cash strength.
Free Cash Flow
Echo IQ Limited generates weak or negative free cash flow of $-8.47M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.01 in free cash annually.
FCF Yield
EIQ.AX converts -1.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-36.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
33.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
6480.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
18.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.78
vs 25 benchmark
ROA
Return on assets percentage
-0.87
vs 25 benchmark
ROCE
Return on capital employed
-0.95
vs 25 benchmark
How EIQ.AX Stacks Against Its Sector Peers
| Metric | EIQ.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -36.94 | 33.98 | Better (Cheaper) |
| ROE | -78.48% | 1007.00% | Weak |
| Net Margin | -17277.21% | -47798.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 18.81 | 5.66 | Strong Liquidity |
| ROA | -87.31% | -287356.00% (disorted) | Weak |
EIQ.AX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Echo IQ Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-94.26%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-90.08%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-126.84%
Industry Style: Growth, Innovation, High Beta
Declining