Whole Earth Brands, Inc.
Whole Earth Brands, Inc. Fundamental Analysis
Whole Earth Brands, Inc. (FREE) shows weak financial fundamentals with a PE ratio of -5.43, profit margin of -6.92%, and ROE of -14.48%. The company generates $0.6B 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 -8.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FREE's fundamental strength across five key dimensions:
Efficiency Score
WeakFREE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFREE trades at attractive valuation levels.
Growth Score
WeakFREE faces weak or negative growth trends.
Financial Health Score
ModerateFREE shows balanced financial health with some risks.
Profitability Score
WeakFREE struggles to sustain strong margins.
Key Financial Metrics
Is FREE Expensive or Cheap?
P/E Ratio
FREE trades at -5.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FREE's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Whole Earth Brands, Inc. at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.90 times EBITDA. This is generally considered low.
How Well Does FREE Make Money?
Net Profit Margin
For every $100 in sales, Whole Earth Brands, Inc. keeps $-6.92 as profit after all expenses.
Operating Margin
Core operations generate 4.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-14.48 in profit for every $100 of shareholder equity.
ROA
Whole Earth Brands, Inc. generates $-4.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Whole Earth Brands, Inc. generates limited operating cash flow of $25.42M, signaling weaker underlying cash strength.
Free Cash Flow
Whole Earth Brands, Inc. produces free cash flow of $19.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.45 in free cash annually.
FCF Yield
FREE converts 9.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.14
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How FREE Stacks Against Its Sector Peers
| Metric | FREE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.43 | 23.25 | Better (Cheaper) |
| ROE | -14.48% | 1240.00% | Weak |
| Net Margin | -6.92% | -9728.00% (disorted) | Weak |
| Debt/Equity | 1.76 | 0.77 | Weak (High Leverage) |
| Current Ratio | 3.24 | 2.54 | Strong Liquidity |
| ROA | -4.61% | -203388.00% (disorted) | Weak |
FREE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Whole Earth Brands, Inc.'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