Grindrod Limited
Grindrod Limited Fundamental Analysis
Grindrod Limited (GRDLY) shows strong financial fundamentals with a PE ratio of 5.87, profit margin of 40.97%, and ROE of 21.53%. The company generates $5.1B in annual revenue with weak year-over-year growth of 2.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.1/100 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 GRDLY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGRDLY demonstrates superior asset utilization.
Valuation Score
ExcellentGRDLY trades at attractive valuation levels.
Growth Score
WeakGRDLY faces weak or negative growth trends.
Financial Health Score
ExcellentGRDLY maintains a strong and stable balance sheet.
Profitability Score
ExcellentGRDLY achieves industry-leading margins.
Key Financial Metrics
Is GRDLY Expensive or Cheap?
P/E Ratio
GRDLY trades at 5.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GRDLY's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Grindrod Limited at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.02 times EBITDA. This is generally considered low.
How Well Does GRDLY Make Money?
Net Profit Margin
For every $100 in sales, Grindrod Limited keeps $40.97 as profit after all expenses.
Operating Margin
Core operations generate 20.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.53 in profit for every $100 of shareholder equity.
ROA
Grindrod Limited generates $13.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Grindrod Limited generates strong operating cash flow of $1.60B, reflecting robust business health.
Free Cash Flow
Grindrod Limited generates strong free cash flow of $1.35B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $20.18 in free cash annually.
FCF Yield
GRDLY converts 10.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How GRDLY Stacks Against Its Sector Peers
| Metric | GRDLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.87 | 25.81 | Better (Cheaper) |
| ROE | 21.53% | 1255.00% | Weak |
| Net Margin | 40.97% | -46749.00% (disorted) | Strong |
| Debt/Equity | 0.33 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.95 | 10.04 | Neutral |
| ROA | 13.09% | -1492798.00% (disorted) | Strong |
GRDLY outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Grindrod Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.32%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
8.92%
Industry Style: Cyclical, Value, Infrastructure
GrowingFCF CAGR
-41.07%
Industry Style: Cyclical, Value, Infrastructure
Declining