Isras Investment Company Ltd Fundamental Analysis
Isras Investment Company Ltd (IRICF) shows moderate financial fundamentals with a PE ratio of 7.46, profit margin of 69.05%, and ROE of 8.78%. The company generates $0.6B in annual revenue with weak year-over-year growth of -17.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IRICF's fundamental strength across five key dimensions:
Efficiency Score
WeakIRICF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIRICF trades at attractive valuation levels.
Growth Score
WeakIRICF faces weak or negative growth trends.
Financial Health Score
ModerateIRICF shows balanced financial health with some risks.
Profitability Score
ModerateIRICF maintains healthy but balanced margins.
Key Financial Metrics
Is IRICF Expensive or Cheap?
P/E Ratio
IRICF trades at 7.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IRICF's PEG of 0.51 indicates potential undervaluation.
Price to Book
The market values Isras Investment Company Ltd at 0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.07 times EBITDA. This is generally considered low.
How Well Does IRICF Make Money?
Net Profit Margin
For every $100 in sales, Isras Investment Company Ltd keeps $69.05 as profit after all expenses.
Operating Margin
Core operations generate 75.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.78 in profit for every $100 of shareholder equity.
ROA
Isras Investment Company Ltd generates $3.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Isras Investment Company Ltd generates strong operating cash flow of $286.81M, reflecting robust business health.
Free Cash Flow
Isras Investment Company Ltd generates strong free cash flow of $229.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $46.89 in free cash annually.
FCF Yield
IRICF converts 7.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How IRICF Stacks Against Its Sector Peers
| Metric | IRICF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.46 | 23.44 | Better (Cheaper) |
| ROE | 8.78% | 671.00% | Weak |
| Net Margin | 69.05% | 1960.00% | Weak |
| Debt/Equity | 0.75 | -17.11 (disorted) | Distorted |
| Current Ratio | 0.82 | 23.50 | Weak Liquidity |
| ROA | 3.87% | -761.00% (disorted) | Weak |
IRICF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Isras Investment Company Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.99%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
41.66%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
16.48%
Industry Style: Income, Inflation Hedge, REIT
High Growth