Funding Circle Holdings plc
Funding Circle Holdings plc Fundamental Analysis
Funding Circle Holdings plc (FDCHF) shows strong financial fundamentals with a PE ratio of 10.83, profit margin of 20.90%, and ROE of 21.54%. The company generates $0.2B in annual revenue with strong year-over-year growth of 38.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.4/100 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 FDCHF's fundamental strength across five key dimensions:
Efficiency Score
WeakFDCHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFDCHF trades at attractive valuation levels.
Growth Score
ExcellentFDCHF delivers strong and consistent growth momentum.
Financial Health Score
ModerateFDCHF shows balanced financial health with some risks.
Profitability Score
ModerateFDCHF maintains healthy but balanced margins.
Key Financial Metrics
Is FDCHF Expensive or Cheap?
P/E Ratio
FDCHF trades at 10.83 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FDCHF's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Funding Circle Holdings plc at 2.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.16 times EBITDA. This signals the market has high growth expectations.
How Well Does FDCHF Make Money?
Net Profit Margin
For every $100 in sales, Funding Circle Holdings plc keeps $20.90 as profit after all expenses.
Operating Margin
Core operations generate 17.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.54 in profit for every $100 of shareholder equity.
ROA
Funding Circle Holdings plc generates $8.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Funding Circle Holdings plc generates limited operating cash flow of $-32.32M, signaling weaker underlying cash strength.
Free Cash Flow
Funding Circle Holdings plc generates weak or negative free cash flow of $-32.89M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.11 in free cash annually.
FCF Yield
FDCHF converts -7.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How FDCHF Stacks Against Its Sector Peers
| Metric | FDCHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.83 | 18.66 | Better (Cheaper) |
| ROE | 21.54% | 804.00% | Weak |
| Net Margin | 20.90% | 2258.00% | Weak |
| Debt/Equity | 1.20 | 1.03 | Neutral |
| Current Ratio | 1.70 | 662.03 | Neutral |
| ROA | 8.58% | -24049.00% (disorted) | Weak |
FDCHF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Funding Circle Holdings plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.29%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
146.85%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-212.63%
Industry Style: Value, Dividend, Cyclical
Declining