Grange Resources Ltd
Grange Resources Ltd Fundamental Analysis
Grange Resources Ltd (GRR.AX) shows weak financial fundamentals with a PE ratio of 5.86, profit margin of 9.28%, and ROE of 4.29%. The company generates $0.5B in annual revenue with weak year-over-year growth of -15.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GRR.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakGRR.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGRR.AX trades at attractive valuation levels.
Growth Score
WeakGRR.AX faces weak or negative growth trends.
Financial Health Score
ExcellentGRR.AX maintains a strong and stable balance sheet.
Profitability Score
WeakGRR.AX struggles to sustain strong margins.
Key Financial Metrics
Is GRR.AX Expensive or Cheap?
P/E Ratio
GRR.AX trades at 5.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GRR.AX's PEG of -0.27 indicates potential undervaluation.
Price to Book
The market values Grange Resources Ltd at 0.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.70 times EBITDA. This is generally considered low.
How Well Does GRR.AX Make Money?
Net Profit Margin
For every $100 in sales, Grange Resources Ltd keeps $9.28 as profit after all expenses.
Operating Margin
Core operations generate 9.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.29 in profit for every $100 of shareholder equity.
ROA
Grange Resources Ltd generates $3.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Grange Resources Ltd generates strong operating cash flow of $168.89M, reflecting robust business health.
Free Cash Flow
Grange Resources Ltd generates strong free cash flow of $92.69M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.08 in free cash annually.
FCF Yield
GRR.AX converts 35.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How GRR.AX Stacks Against Its Sector Peers
| Metric | GRR.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.86 | 26.70 | Better (Cheaper) |
| ROE | 4.29% | 828.00% | Weak |
| Net Margin | 9.28% | -122621.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.42 | Strong (Low Leverage) |
| Current Ratio | 8.46 | 4.90 | Strong Liquidity |
| ROA | 3.46% | -6867.00% (disorted) | Weak |
GRR.AX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Grange Resources Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.29%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-24.61%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
330.46%
Industry Style: Cyclical, Commodity, Value
High Growth