IAR Systems Group AB (publ)
IAR Systems Group AB (publ) Fundamental Analysis
IAR Systems Group AB (publ) (IARGF) shows moderate financial fundamentals with a PE ratio of 36.22, profit margin of 12.38%, and ROE of 16.92%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 6.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.6/100 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 IARGF's fundamental strength across five key dimensions:
Efficiency Score
WeakIARGF struggles to generate sufficient returns from assets.
Valuation Score
WeakIARGF trades at a premium to fair value.
Growth Score
ModerateIARGF shows steady but slowing expansion.
Financial Health Score
ExcellentIARGF maintains a strong and stable balance sheet.
Profitability Score
ModerateIARGF maintains healthy but balanced margins.
Key Financial Metrics
Is IARGF Expensive or Cheap?
P/E Ratio
IARGF trades at 36.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IARGF's PEG of 3.61 indicates potential overvaluation.
Price to Book
The market values IAR Systems Group AB (publ) at 4.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.12 times EBITDA. This signals the market has high growth expectations.
How Well Does IARGF Make Money?
Net Profit Margin
For every $100 in sales, IAR Systems Group AB (publ) keeps $12.38 as profit after all expenses.
Operating Margin
Core operations generate 18.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.92 in profit for every $100 of shareholder equity.
ROA
IAR Systems Group AB (publ) generates $8.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IAR Systems Group AB (publ) produces operating cash flow of $50.45M, showing steady but balanced cash generation.
Free Cash Flow
IAR Systems Group AB (publ) produces free cash flow of $39.58M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.11 in free cash annually.
FCF Yield
IARGF converts 1.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How IARGF Stacks Against Its Sector Peers
| Metric | IARGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.22 | 35.87 | Neutral |
| ROE | 16.92% | 1175.00% | Weak |
| Net Margin | 12.38% | -136937.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.43 | 4.81 | Neutral |
| ROA | 8.65% | -312685.00% (disorted) | Weak |
IARGF 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 IAR Systems Group AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.47%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
71.15%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
31.67%
Industry Style: Growth, Innovation, High Beta
High Growth