Gamehost Inc. Fundamental Analysis (TSX: GH.TO)
Gamehost Inc. Fundamental Analysis (TSX: GH.TO)
Gamehost Inc. (TSX: GH.TO) shows moderate financial fundamentals with a PE ratio of 14.68, profit margin of 22.92%, and ROE of 16.51%. The company generates $0.1B in annual revenue with weak year-over-year growth of 2.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.0/100 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 GH.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGH.TO demonstrates superior asset utilization.
Valuation Score
ExcellentGH.TO trades at attractive valuation levels.
Growth Score
ModerateGH.TO shows steady but slowing expansion.
Financial Health Score
ModerateGH.TO shows balanced financial health with some risks.
Profitability Score
ExcellentGH.TO achieves industry-leading margins.
Key Financial Metrics
Is GH.TO Expensive or Cheap?
P/E Ratio
GH.TO trades at 14.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GH.TO's PEG of -3.56 indicates potential undervaluation.
Price to Book
The market values Gamehost Inc. at 2.42 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.52 times EBITDA. This is generally considered low.
How Well Does GH.TO Make Money?
Net Profit Margin
For every $100 in sales, Gamehost Inc. keeps $22.92 as profit after all expenses.
Operating Margin
Core operations generate 31.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.51 in profit for every $100 of shareholder equity.
ROA
Gamehost Inc. generates $11.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gamehost Inc. generates strong operating cash flow of $23.92M, reflecting robust business health.
Free Cash Flow
Gamehost Inc. generates strong free cash flow of $22.67M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.10 in free cash annually.
FCF Yield
GH.TO converts 8.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How GH.TO Stacks Against Its Sector Peers
| Metric | GH.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.68 | 25.68 | Better (Cheaper) |
| ROE | 16.51% | 970.00% | Weak |
| Net Margin | 22.92% | -4902.00% (disorted) | Strong |
| Debt/Equity | 0.33 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 0.98 | 2.33 | Weak Liquidity |
| ROA | 11.04% | 321.00% | Weak |
GH.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gamehost Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
178.78%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
365.55%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
241.93%
Industry Style: Cyclical, Growth, Discretionary
High Growth