Macquarie Group Limited
Macquarie Group Limited Fundamental Analysis
Macquarie Group Limited (MCQEF) shows moderate financial fundamentals with a PE ratio of 13.14, profit margin of 25.63%, and ROE of 10.75%. The company generates $22.1B in annual revenue with weak year-over-year growth of -11.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MCQEF's fundamental strength across five key dimensions:
Efficiency Score
WeakMCQEF struggles to generate sufficient returns from assets.
Valuation Score
ModerateMCQEF shows balanced valuation metrics.
Growth Score
WeakMCQEF faces weak or negative growth trends.
Financial Health Score
ModerateMCQEF shows balanced financial health with some risks.
Profitability Score
ModerateMCQEF maintains healthy but balanced margins.
Key Financial Metrics
Is MCQEF Expensive or Cheap?
P/E Ratio
MCQEF trades at 13.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MCQEF's PEG of 3.13 indicates potential overvaluation.
Price to Book
The market values Macquarie Group Limited at 1.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.05 times EBITDA. This is generally considered low.
How Well Does MCQEF Make Money?
Net Profit Margin
For every $100 in sales, Macquarie Group Limited keeps $25.63 as profit after all expenses.
Operating Margin
Core operations generate -48.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.75 in profit for every $100 of shareholder equity.
ROA
Macquarie Group Limited generates $0.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Macquarie Group Limited generates strong operating cash flow of $9.47B, reflecting robust business health.
Free Cash Flow
Macquarie Group Limited generates strong free cash flow of $8.08B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $22.10 in free cash annually.
FCF Yield
MCQEF converts 7.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How MCQEF Stacks Against Its Sector Peers
| Metric | MCQEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.14 | 18.76 | Better (Cheaper) |
| ROE | 10.75% | 815.00% | Weak |
| Net Margin | 25.63% | 1921.00% | Weak |
| Debt/Equity | 4.94 | 0.86 | Weak (High Leverage) |
| Current Ratio | 11.33 | 637.78 | Strong Liquidity |
| ROA | 0.78% | -24778.00% (disorted) | Weak |
MCQEF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Macquarie Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
191.11%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
17.03%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-34.46%
Industry Style: Value, Dividend, Cyclical
Declining