Future Generation Australia Limited
Future Generation Australia Limited Fundamental Analysis
Future Generation Australia Limited (FGX.AX) shows moderate financial fundamentals with a PE ratio of 10.25, profit margin of 70.36%, and ROE of 9.43%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 6.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.7/100 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 FGX.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakFGX.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFGX.AX trades at attractive valuation levels.
Growth Score
ModerateFGX.AX shows steady but slowing expansion.
Financial Health Score
ExcellentFGX.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateFGX.AX maintains healthy but balanced margins.
Key Financial Metrics
Is FGX.AX Expensive or Cheap?
P/E Ratio
FGX.AX trades at 10.25 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FGX.AX's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Future Generation Australia Limited at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.40 times EBITDA. This signals the market has high growth expectations.
How Well Does FGX.AX Make Money?
Net Profit Margin
For every $100 in sales, Future Generation Australia Limited keeps $70.36 as profit after all expenses.
Operating Margin
Core operations generate 98.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.43 in profit for every $100 of shareholder equity.
ROA
Future Generation Australia Limited generates $8.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Future Generation Australia Limited generates strong operating cash flow of $37.59M, reflecting robust business health.
Free Cash Flow
Future Generation Australia Limited generates strong free cash flow of $37.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
FGX.AX converts 6.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1040.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How FGX.AX Stacks Against Its Sector Peers
| Metric | FGX.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.25 | 18.80 | Better (Cheaper) |
| ROE | 9.43% | 817.00% | Weak |
| Net Margin | 70.36% | -55.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 1040.75 | 661.52 | Strong Liquidity |
| ROA | 8.64% | -23757.00% (disorted) | Weak |
FGX.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Future Generation Australia Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
103.84%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
112.69%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
659.55%
Industry Style: Value, Dividend, Cyclical
High Growth