Electro Rent Corp.
Electro Rent Corp. Fundamental Analysis
Electro Rent Corp. (ELRC) shows weak financial fundamentals with a PE ratio of 79.10, profit margin of 2.73%, and ROE of 2.13%. The company generates N/A 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 43.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ELRC's fundamental strength across five key dimensions:
Efficiency Score
WeakELRC struggles to generate sufficient returns from assets.
Valuation Score
ModerateELRC shows balanced valuation metrics.
Growth Score
WeakELRC faces weak or negative growth trends.
Financial Health Score
ExcellentELRC maintains a strong and stable balance sheet.
Profitability Score
WeakELRC struggles to sustain strong margins.
Key Financial Metrics
Is ELRC Expensive or Cheap?
P/E Ratio
ELRC trades at 79.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ELRC's PEG of 0.79 indicates potential undervaluation.
Price to Book
The market values Electro Rent Corp. at 1.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.46 times EBITDA. This is generally considered low.
How Well Does ELRC Make Money?
Net Profit Margin
For every $100 in sales, Electro Rent Corp. keeps $2.73 as profit after all expenses.
Operating Margin
Core operations generate 4.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.13 in profit for every $100 of shareholder equity.
ROA
Electro Rent Corp. generates $1.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $0.34 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
79.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How ELRC Stacks Against Its Sector Peers
| Metric | ELRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 79.10 | 25.96 | Worse (Expensive) |
| ROE | 2.13% | 1263.00% | Weak |
| Net Margin | 2.73% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 5.06 | 10.05 | Strong Liquidity |
| ROA | 1.68% | -1497918.00% (disorted) | Weak |
ELRC outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Electro Rent Corp.'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, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure