Electro Optic Systems Holdings Limited
Electro Optic Systems Holdings Limited Fundamental Analysis
Electro Optic Systems Holdings Limited (EOS.AX) shows weak financial fundamentals with a PE ratio of 96.21, profit margin of 14.49%, and ROE of 7.19%. The company generates $0.1B in annual revenue with weak year-over-year growth of -19.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EOS.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakEOS.AX struggles to generate sufficient returns from assets.
Valuation Score
WeakEOS.AX trades at a premium to fair value.
Growth Score
ModerateEOS.AX shows steady but slowing expansion.
Financial Health Score
ExcellentEOS.AX maintains a strong and stable balance sheet.
Profitability Score
WeakEOS.AX struggles to sustain strong margins.
Key Financial Metrics
Is EOS.AX Expensive or Cheap?
P/E Ratio
EOS.AX trades at 96.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EOS.AX's PEG of 2.94 indicates potential overvaluation.
Price to Book
The market values Electro Optic Systems Holdings Limited at 7.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -62.99 times EBITDA. This is generally considered low.
How Well Does EOS.AX Make Money?
Net Profit Margin
For every $100 in sales, Electro Optic Systems Holdings Limited keeps $14.49 as profit after all expenses.
Operating Margin
Core operations generate -38.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.19 in profit for every $100 of shareholder equity.
ROA
Electro Optic Systems Holdings Limited generates $4.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Electro Optic Systems Holdings Limited generates limited operating cash flow of $-24.19M, signaling weaker underlying cash strength.
Free Cash Flow
Electro Optic Systems Holdings Limited generates weak or negative free cash flow of $-40.17M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.21 in free cash annually.
FCF Yield
EOS.AX converts -2.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
96.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.34
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
-0.19
vs 25 benchmark
How EOS.AX Stacks Against Its Sector Peers
| Metric | EOS.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 96.21 | 26.39 | Worse (Expensive) |
| ROE | 7.19% | 1286.00% | Weak |
| Net Margin | 14.49% | -37140.00% (disorted) | Strong |
| Debt/Equity | 0.12 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.34 | 10.39 | Strong Liquidity |
| ROA | 4.97% | -1500982.00% (disorted) | Weak |
EOS.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Electro Optic Systems Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-15.47%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-180.44%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
28.93%
Industry Style: Cyclical, Value, Infrastructure
High Growth