L1 Group Ltd. Fundamental Analysis
L1 Group Ltd. (L1G.AX) shows moderate financial fundamentals with a PE ratio of 146.25, profit margin of 53.05%, and ROE of 58.96%. The company generates $0.1B 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 80.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze L1G.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentL1G.AX demonstrates superior asset utilization.
Valuation Score
ModerateL1G.AX shows balanced valuation metrics.
Growth Score
ModerateL1G.AX shows steady but slowing expansion.
Financial Health Score
ExcellentL1G.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentL1G.AX achieves industry-leading margins.
Key Financial Metrics
Is L1G.AX Expensive or Cheap?
P/E Ratio
L1G.AX trades at 146.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, L1G.AX's PEG of -1.79 indicates potential undervaluation.
Price to Book
The market values L1 Group Ltd. at 3.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.02 times EBITDA. This is generally considered low.
How Well Does L1G.AX Make Money?
Net Profit Margin
For every $100 in sales, L1 Group Ltd. keeps $53.05 as profit after all expenses.
Operating Margin
Core operations generate 79.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $58.96 in profit for every $100 of shareholder equity.
ROA
L1 Group Ltd. generates $23.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
L1 Group Ltd. produces operating cash flow of $25.38M, showing steady but balanced cash generation.
Free Cash Flow
L1 Group Ltd. generates strong free cash flow of $25.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
L1G.AX converts 14.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
146.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
235.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.59
vs 25 benchmark
ROA
Return on assets percentage
0.24
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How L1G.AX Stacks Against Its Sector Peers
| Metric | L1G.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 146.25 | 20.54 | Worse (Expensive) |
| ROE | 58.96% | 619.00% | Weak |
| Net Margin | 53.05% | -8973.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 1.50 | Strong (Low Leverage) |
| Current Ratio | 235.38 | 932.90 | Strong Liquidity |
| ROA | 23.67% | -839.00% (disorted) | Strong |
L1G.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews L1 Group 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: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical