EROAD Limited
EROAD Limited Fundamental Analysis
EROAD Limited (ERDLF) shows moderate financial fundamentals with a PE ratio of -2.67, profit margin of -72.26%, and ROE of -54.19%. The company generates $0.2B in annual revenue with strong year-over-year growth of 11.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -73.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ERDLF's fundamental strength across five key dimensions:
Efficiency Score
WeakERDLF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentERDLF trades at attractive valuation levels.
Growth Score
ExcellentERDLF delivers strong and consistent growth momentum.
Financial Health Score
ModerateERDLF shows balanced financial health with some risks.
Profitability Score
WeakERDLF struggles to sustain strong margins.
Key Financial Metrics
Is ERDLF Expensive or Cheap?
P/E Ratio
ERDLF trades at -2.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ERDLF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values EROAD Limited at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.26 times EBITDA. This is generally considered low.
How Well Does ERDLF Make Money?
Net Profit Margin
For every $100 in sales, EROAD Limited keeps $-72.26 as profit after all expenses.
Operating Margin
Core operations generate 1.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-54.19 in profit for every $100 of shareholder equity.
ROA
EROAD Limited generates $-44.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EROAD Limited generates strong operating cash flow of $51.54M, reflecting robust business health.
Free Cash Flow
EROAD Limited generates strong free cash flow of $34.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.19 in free cash annually.
FCF Yield
ERDLF converts 9.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.54
vs 25 benchmark
ROA
Return on assets percentage
-0.45
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How ERDLF Stacks Against Its Sector Peers
| Metric | ERDLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.67 | 35.62 | Better (Cheaper) |
| ROE | -54.19% | 1160.00% | Weak |
| Net Margin | -72.26% | -136515.00% (disorted) | Weak |
| Debt/Equity | 0.16 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 0.86 | 4.79 | Weak Liquidity |
| ROA | -44.57% | -311498.00% (disorted) | Weak |
ERDLF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EROAD Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
63.46%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
96.73%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
98.27%
Industry Style: Growth, Innovation, High Beta
High Growth