Fletcher Building Limited
Fletcher Building Limited Fundamental Analysis
Fletcher Building Limited (FRCEF) shows weak financial fundamentals with a PE ratio of -12.90, profit margin of -4.72%, and ROE of -8.15%. The company generates $6.3B in annual revenue with weak year-over-year growth of -8.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -2.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FRCEF's fundamental strength across five key dimensions:
Efficiency Score
WeakFRCEF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFRCEF trades at attractive valuation levels.
Growth Score
WeakFRCEF faces weak or negative growth trends.
Financial Health Score
ExcellentFRCEF maintains a strong and stable balance sheet.
Profitability Score
WeakFRCEF struggles to sustain strong margins.
Key Financial Metrics
Is FRCEF Expensive or Cheap?
P/E Ratio
FRCEF trades at -12.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FRCEF's PEG of 0.16 indicates potential undervaluation.
Price to Book
The market values Fletcher Building Limited at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.43 times EBITDA. This is generally considered low.
How Well Does FRCEF Make Money?
Net Profit Margin
For every $100 in sales, Fletcher Building Limited keeps $-4.72 as profit after all expenses.
Operating Margin
Core operations generate 5.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.15 in profit for every $100 of shareholder equity.
ROA
Fletcher Building Limited generates $-3.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fletcher Building Limited produces operating cash flow of $687.12M, showing steady but balanced cash generation.
Free Cash Flow
Fletcher Building Limited produces free cash flow of $419.27M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.39 in free cash annually.
FCF Yield
FRCEF converts 11.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-12.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.08
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How FRCEF Stacks Against Its Sector Peers
| Metric | FRCEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -12.90 | 24.37 | Better (Cheaper) |
| ROE | -8.15% | 900.00% | Weak |
| Net Margin | -4.72% | -111192.00% (disorted) | Weak |
| Debt/Equity | 0.97 | 0.51 | Weak (High Leverage) |
| Current Ratio | 1.50 | 5.33 | Neutral |
| ROA | -3.82% | -6678.00% (disorted) | Weak |
FRCEF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fletcher Building Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-18.61%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-81.83%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
3.93%
Industry Style: Cyclical, Commodity, Value
Growing