Heartland Group Holdings Limited
Heartland Group Holdings Limited Fundamental Analysis
Heartland Group Holdings Limited (HGH.AX) shows moderate financial fundamentals with a PE ratio of 11.59, profit margin of 17.26%, and ROE of 6.70%. The company generates $0.6B in annual revenue with weak year-over-year growth of 2.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HGH.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakHGH.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHGH.AX trades at attractive valuation levels.
Growth Score
WeakHGH.AX faces weak or negative growth trends.
Financial Health Score
ExcellentHGH.AX maintains a strong and stable balance sheet.
Profitability Score
WeakHGH.AX struggles to sustain strong margins.
Key Financial Metrics
Is HGH.AX Expensive or Cheap?
P/E Ratio
HGH.AX trades at 11.59 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HGH.AX's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Heartland Group Holdings Limited at 0.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.54 times EBITDA. This signals the market has high growth expectations.
How Well Does HGH.AX Make Money?
Net Profit Margin
For every $100 in sales, Heartland Group Holdings Limited keeps $17.26 as profit after all expenses.
Operating Margin
Core operations generate 28.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.70 in profit for every $100 of shareholder equity.
ROA
Heartland Group Holdings Limited generates $0.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heartland Group Holdings Limited generates limited operating cash flow of $-135.98M, signaling weaker underlying cash strength.
Free Cash Flow
Heartland Group Holdings Limited generates weak or negative free cash flow of $-141.60M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.15 in free cash annually.
FCF Yield
HGH.AX converts -10.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.005
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How HGH.AX Stacks Against Its Sector Peers
| Metric | HGH.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.59 | 18.66 | Better (Cheaper) |
| ROE | 6.70% | 806.00% | Weak |
| Net Margin | 17.26% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.44 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 1.01 | 662.02 | Neutral |
| ROA | 0.95% | -24409.00% (disorted) | Weak |
HGH.AX 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 Heartland Group Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-25.07%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-66.81%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
136.48%
Industry Style: Value, Dividend, Cyclical
High Growth