Embark Education Group LImited
Embark Education Group LImited Fundamental Analysis
Embark Education Group LImited (EVO.AX) shows moderate financial fundamentals with a PE ratio of 4.89, profit margin of 12.21%, and ROE of 17.97%. The company generates $0.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.6/100 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 EVO.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakEVO.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEVO.AX trades at attractive valuation levels.
Growth Score
ModerateEVO.AX shows steady but slowing expansion.
Financial Health Score
ModerateEVO.AX shows balanced financial health with some risks.
Profitability Score
ModerateEVO.AX maintains healthy but balanced margins.
Key Financial Metrics
Is EVO.AX Expensive or Cheap?
P/E Ratio
EVO.AX trades at 4.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EVO.AX's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Embark Education Group LImited at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.04 times EBITDA. This is generally considered low.
How Well Does EVO.AX Make Money?
Net Profit Margin
For every $100 in sales, Embark Education Group LImited keeps $12.21 as profit after all expenses.
Operating Margin
Core operations generate 27.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.97 in profit for every $100 of shareholder equity.
ROA
Embark Education Group LImited generates $7.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Embark Education Group LImited produces operating cash flow of $41.53M, showing steady but balanced cash generation.
Free Cash Flow
Embark Education Group LImited generates strong free cash flow of $39.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.20 in free cash annually.
FCF Yield
EVO.AX converts 35.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How EVO.AX Stacks Against Its Sector Peers
| Metric | EVO.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.89 | 22.36 | Better (Cheaper) |
| ROE | 17.97% | 1238.00% | Weak |
| Net Margin | 12.21% | -5096.00% (disorted) | Strong |
| Debt/Equity | 1.16 | 1.23 | Neutral |
| Current Ratio | 1.10 | 2.47 | Neutral |
| ROA | 7.69% | -191998.00% (disorted) | Weak |
EVO.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Embark Education Group LImited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility