Group 6 Metals Limited Fundamental Analysis (ASX: G6M.AX)
Group 6 Metals Limited Fundamental Analysis (ASX: G6M.AX)
Group 6 Metals Limited (ASX: G6M.AX) shows moderate financial fundamentals with a PE ratio of 5.00, profit margin of 1.15%, and ROE of 1.83%. The company generates $0.1B in annual revenue with strong year-over-year growth of 71.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.6/100 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 G6M.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentG6M.AX demonstrates superior asset utilization.
Valuation Score
ExcellentG6M.AX trades at attractive valuation levels.
Growth Score
ExcellentG6M.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentG6M.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateG6M.AX maintains healthy but balanced margins.
Key Financial Metrics
Is G6M.AX Expensive or Cheap?
P/E Ratio
G6M.AX trades at 5.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, G6M.AX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Group 6 Metals Limited at 4.80 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.13 times EBITDA. This signals the market has high growth expectations.
How Well Does G6M.AX Make Money?
Net Profit Margin
For every $100 in sales, Group 6 Metals Limited keeps $1.15 as profit after all expenses.
Operating Margin
Core operations generate 50.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.83 in profit for every $100 of shareholder equity.
ROA
Group 6 Metals Limited generates $70.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Group 6 Metals Limited generates strong operating cash flow of $55.68M, reflecting robust business health.
Free Cash Flow
Group 6 Metals Limited generates strong free cash flow of $44.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.18 in free cash annually.
FCF Yield
G6M.AX converts 5.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.003
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.83
vs 25 benchmark
ROA
Return on assets percentage
0.71
vs 25 benchmark
ROCE
Return on capital employed
0.39
vs 25 benchmark
How G6M.AX Stacks Against Its Sector Peers
| Metric | G6M.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.00 | 25.32 | Better (Cheaper) |
| ROE | 182.79% | 1259.00% | Weak |
| Net Margin | 114.90% | 434.00% | Weak |
| Debt/Equity | 0.14 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 1.96 | 3.14 | Neutral |
| ROA | 70.79% | 2662.00% | Weak |
G6M.AX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Group 6 Metals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
31.69%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
30.46%
Industry Style: Cyclical, Commodity, Value
High Growth