Karoon Energy Ltd Fundamental Analysis
Karoon Energy Ltd (KAR.AX) shows moderate financial fundamentals with a PE ratio of 5.71, profit margin of 19.93%, and ROE of 12.44%. The company generates $0.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.6/100 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 KAR.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakKAR.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKAR.AX trades at attractive valuation levels.
Growth Score
ModerateKAR.AX shows steady but slowing expansion.
Financial Health Score
ExcellentKAR.AX maintains a strong and stable balance sheet.
Profitability Score
WeakKAR.AX struggles to sustain strong margins.
Key Financial Metrics
Is KAR.AX Expensive or Cheap?
P/E Ratio
KAR.AX trades at 5.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KAR.AX's PEG of 1.33 indicates fair valuation.
Price to Book
The market values Karoon Energy Ltd at 0.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.57 times EBITDA. This is generally considered low.
How Well Does KAR.AX Make Money?
Net Profit Margin
For every $100 in sales, Karoon Energy Ltd keeps $19.93 as profit after all expenses.
Operating Margin
Core operations generate 27.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.44 in profit for every $100 of shareholder equity.
ROA
Karoon Energy Ltd generates $7.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Karoon Energy Ltd generates strong operating cash flow of $245.33M, reflecting robust business health.
Free Cash Flow
Karoon Energy Ltd generates weak or negative free cash flow of $-10.93M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
KAR.AX converts -1.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How KAR.AX Stacks Against Its Sector Peers
| Metric | KAR.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.71 | 21.19 | Better (Cheaper) |
| ROE | 12.44% | 1086.00% | Weak |
| Net Margin | 19.93% | -27649.00% (disorted) | Strong |
| Debt/Equity | 0.33 | -1.55 (disorted) | Distorted |
| Current Ratio | 2.68 | 3.00 | Strong Liquidity |
| ROA | 7.11% | 407.00% | Weak |
KAR.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 Karoon Energy Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity