European Lithium Limited
European Lithium Limited Fundamental Analysis
European Lithium Limited (EUR.AX) shows moderate financial fundamentals with a PE ratio of 0.33, profit margin of 2749.23%, and ROE of 1.54%. The company generates $0.0B in annual revenue with weak year-over-year growth of 1.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze EUR.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEUR.AX demonstrates superior asset utilization.
Valuation Score
ExcellentEUR.AX trades at attractive valuation levels.
Growth Score
ModerateEUR.AX shows steady but slowing expansion.
Financial Health Score
ExcellentEUR.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateEUR.AX maintains healthy but balanced margins.
Key Financial Metrics
Is EUR.AX Expensive or Cheap?
P/E Ratio
EUR.AX trades at 0.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EUR.AX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values European Lithium Limited at 0.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.02 times EBITDA. This is generally considered low.
How Well Does EUR.AX Make Money?
Net Profit Margin
For every $100 in sales, European Lithium Limited keeps $2749.23 as profit after all expenses.
Operating Margin
Core operations generate -137.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.54 in profit for every $100 of shareholder equity.
ROA
European Lithium Limited generates $81.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
European Lithium Limited generates limited operating cash flow of $-28.51M, signaling weaker underlying cash strength.
Free Cash Flow
European Lithium Limited generates weak or negative free cash flow of $-29.43M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
EUR.AX converts -9.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
839.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
21.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.54
vs 25 benchmark
ROA
Return on assets percentage
0.81
vs 25 benchmark
ROCE
Return on capital employed
-0.04
vs 25 benchmark
How EUR.AX Stacks Against Its Sector Peers
| Metric | EUR.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.33 | 23.47 | Better (Cheaper) |
| ROE | 154.06% | 916.00% | Weak |
| Net Margin | 274922.63% | -92912.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 21.95 | 4.52 | Strong Liquidity |
| ROA | 81.02% | -9905.00% (disorted) | Strong |
EUR.AX outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews European Lithium Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20811.85%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-1183.02%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-1522.30%
Industry Style: Cyclical, Commodity, Value
Declining