GWA Group Limited
GWA Group Limited Fundamental Analysis
GWA Group Limited (GWA.AX) shows moderate financial fundamentals with a PE ratio of 11.79, profit margin of 11.02%, and ROE of 15.52%. The company generates $0.4B in annual revenue with weak year-over-year growth of 0.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GWA.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakGWA.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGWA.AX trades at attractive valuation levels.
Growth Score
WeakGWA.AX faces weak or negative growth trends.
Financial Health Score
ExcellentGWA.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateGWA.AX maintains healthy but balanced margins.
Key Financial Metrics
Is GWA.AX Expensive or Cheap?
P/E Ratio
GWA.AX trades at 11.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GWA.AX's PEG of 0.94 indicates potential undervaluation.
Price to Book
The market values GWA Group Limited at 1.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.47 times EBITDA. This is generally considered low.
How Well Does GWA.AX Make Money?
Net Profit Margin
For every $100 in sales, GWA Group Limited keeps $11.02 as profit after all expenses.
Operating Margin
Core operations generate 18.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.52 in profit for every $100 of shareholder equity.
ROA
GWA Group Limited generates $7.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GWA Group Limited produces operating cash flow of $62.01M, showing steady but balanced cash generation.
Free Cash Flow
GWA Group Limited generates strong free cash flow of $60.71M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.23 in free cash annually.
FCF Yield
GWA.AX converts 11.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How GWA.AX Stacks Against Its Sector Peers
| Metric | GWA.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.79 | 24.34 | Better (Cheaper) |
| ROE | 15.52% | 1149.00% | Weak |
| Net Margin | 11.02% | -394.00% (disorted) | Strong |
| Debt/Equity | 0.63 | 0.77 | Neutral |
| Current Ratio | 1.62 | 2.60 | Neutral |
| ROA | 7.34% | -8263.00% (disorted) | Weak |
GWA.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GWA Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.81%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
-11.09%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
7.15%
Industry Style: Cyclical, Growth, Discretionary
Growing