Empire Company Limited
Empire Company Limited Fundamental Analysis
Empire Company Limited (EMLAF) shows weak financial fundamentals with a PE ratio of 102.65, profit margin of 0.38%, and ROE of 2.11%. The company generates $29.6B in annual revenue with weak year-over-year growth of 1.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EMLAF's fundamental strength across five key dimensions:
Efficiency Score
WeakEMLAF struggles to generate sufficient returns from assets.
Valuation Score
ModerateEMLAF shows balanced valuation metrics.
Growth Score
WeakEMLAF faces weak or negative growth trends.
Financial Health Score
WeakEMLAF carries high financial risk with limited liquidity.
Profitability Score
ModerateEMLAF maintains healthy but balanced margins.
Key Financial Metrics
Is EMLAF Expensive or Cheap?
P/E Ratio
EMLAF trades at 102.65 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EMLAF's PEG of -0.88 indicates potential undervaluation.
Price to Book
The market values Empire Company Limited at 2.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.77 times EBITDA. This is generally considered low.
How Well Does EMLAF Make Money?
Net Profit Margin
For every $100 in sales, Empire Company Limited keeps $0.38 as profit after all expenses.
Operating Margin
Core operations generate 3.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.11 in profit for every $100 of shareholder equity.
ROA
Empire Company Limited generates $0.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Empire Company Limited generates limited operating cash flow of $2.00B, signaling weaker underlying cash strength.
Free Cash Flow
Empire Company Limited produces free cash flow of $1.33B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.80 in free cash annually.
FCF Yield
EMLAF converts 11.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
102.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How EMLAF Stacks Against Its Sector Peers
| Metric | EMLAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 102.65 | 22.36 | Worse (Expensive) |
| ROE | 2.11% | 1238.00% | Weak |
| Net Margin | 0.38% | -5096.00% (disorted) | Weak |
| Debt/Equity | 1.61 | 1.23 | Weak (High Leverage) |
| Current Ratio | 0.80 | 2.47 | Weak Liquidity |
| ROA | 0.66% | -191998.00% (disorted) | Weak |
EMLAF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Empire Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.63%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
36.38%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
15.72%
Industry Style: Defensive, Dividend, Low Volatility
High Growth