Elevra Lithium Limited Fundamental Analysis (ASX: ELV.AX)
Elevra Lithium Limited Fundamental Analysis (ASX: ELV.AX)
Elevra Lithium Limited (ASX: ELV.AX) shows strong financial fundamentals with a PE ratio of 10.67, profit margin of 32.49%, and ROE of 7.25%. The company generates $0.2B in annual revenue with strong year-over-year growth of 11.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ELV.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakELV.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentELV.AX trades at attractive valuation levels.
Growth Score
ModerateELV.AX shows steady but slowing expansion.
Financial Health Score
ExcellentELV.AX maintains a strong and stable balance sheet.
Profitability Score
WeakELV.AX struggles to sustain strong margins.
Key Financial Metrics
Is ELV.AX Expensive or Cheap?
P/E Ratio
ELV.AX trades at 10.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ELV.AX's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Elevra Lithium Limited at 1.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -38.84 times EBITDA. This is generally considered low.
How Well Does ELV.AX Make Money?
Net Profit Margin
For every $100 in sales, Elevra Lithium Limited keeps $32.49 as profit after all expenses.
Operating Margin
Core operations generate -34.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.25 in profit for every $100 of shareholder equity.
ROA
Elevra Lithium Limited generates $5.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Elevra Lithium Limited generates limited operating cash flow of $-62.17M, signaling weaker underlying cash strength.
Free Cash Flow
Elevra Lithium Limited generates weak or negative free cash flow of $-96.43M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.50 in free cash annually.
FCF Yield
ELV.AX converts -7.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
-0.06
vs 25 benchmark
How ELV.AX Stacks Against Its Sector Peers
| Metric | ELV.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.67 | 26.20 | Better (Cheaper) |
| ROE | 7.25% | 1241.00% | Weak |
| Net Margin | 32.49% | 441.00% | Weak |
| Debt/Equity | 0.11 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 3.44 | 3.12 | Strong Liquidity |
| ROA | 5.03% | 2616.00% | Weak |
ELV.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 Elevra Lithium Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
368986.85%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-5338.00%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-312.97%
Industry Style: Cyclical, Commodity, Value
Declining