Goodman Group
Goodman Group Fundamental Analysis
Goodman Group (GMG.AX) shows weak financial fundamentals with a PE ratio of 31.46, profit margin of 1.17%, and ROE of 7.19%. The company generates $1.4B in annual revenue with strong year-over-year growth of 14.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.1/100 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 GMG.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakGMG.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateGMG.AX shows balanced valuation metrics.
Growth Score
ExcellentGMG.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGMG.AX maintains a strong and stable balance sheet.
Profitability Score
WeakGMG.AX struggles to sustain strong margins.
Key Financial Metrics
Is GMG.AX Expensive or Cheap?
P/E Ratio
GMG.AX trades at 31.46 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GMG.AX's PEG of -26.43 indicates potential undervaluation.
Price to Book
The market values Goodman Group at 2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 25.00 times EBITDA. This signals the market has high growth expectations.
How Well Does GMG.AX Make Money?
Net Profit Margin
For every $100 in sales, Goodman Group keeps $1.17 as profit after all expenses.
Operating Margin
Core operations generate 3.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.19 in profit for every $100 of shareholder equity.
ROA
Goodman Group generates $5.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Goodman Group generates strong operating cash flow of $1.21B, reflecting robust business health.
Free Cash Flow
Goodman Group generates strong free cash flow of $1.17B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.57 in free cash annually.
FCF Yield
GMG.AX converts 2.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-26.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
37.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
289.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How GMG.AX Stacks Against Its Sector Peers
| Metric | GMG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.46 | 22.50 | Worse (Expensive) |
| ROE | 7.19% | 700.00% | Weak |
| Net Margin | 117.38% | -37372.00% (disorted) | Strong |
| Debt/Equity | 0.18 | -20.81 (disorted) | Distorted |
| Current Ratio | 289.80 | 1949.79 | Strong Liquidity |
| ROA | 5.58% | -1322.00% (disorted) | Weak |
GMG.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Goodman Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.42%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
2.42%
Industry Style: Income, Inflation Hedge, REIT
GrowingFCF CAGR
-23.32%
Industry Style: Income, Inflation Hedge, REIT
Declining