McGrath Limited
McGrath Limited Fundamental Analysis
McGrath Limited (MEA.AX) shows weak financial fundamentals with a PE ratio of 15.33, profit margin of 7.43%, and ROE of 12.19%. 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 57.3/100 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 MEA.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakMEA.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMEA.AX trades at attractive valuation levels.
Growth Score
ModerateMEA.AX shows steady but slowing expansion.
Financial Health Score
ExcellentMEA.AX maintains a strong and stable balance sheet.
Profitability Score
WeakMEA.AX struggles to sustain strong margins.
Key Financial Metrics
Is MEA.AX Expensive or Cheap?
P/E Ratio
MEA.AX trades at 15.33 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MEA.AX's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values McGrath Limited at 1.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.89 times EBITDA. This is generally considered low.
How Well Does MEA.AX Make Money?
Net Profit Margin
For every $100 in sales, McGrath Limited keeps $7.43 as profit after all expenses.
Operating Margin
Core operations generate 4.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.19 in profit for every $100 of shareholder equity.
ROA
McGrath Limited generates $7.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
McGrath Limited generates limited operating cash flow of $2.73M, signaling weaker underlying cash strength.
Free Cash Flow
McGrath Limited generates weak or negative free cash flow of $1.31M, restricting financial flexibility.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
MEA.AX converts 1.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How MEA.AX Stacks Against Its Sector Peers
| Metric | MEA.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.33 | 22.46 | Better (Cheaper) |
| ROE | 12.19% | 681.00% | Weak |
| Net Margin | 7.43% | -37308.00% (disorted) | Weak |
| Debt/Equity | 0.19 | -20.87 (disorted) | Distorted |
| Current Ratio | 2.50 | 1953.63 | Strong Liquidity |
| ROA | 7.57% | -1226.00% (disorted) | Weak |
MEA.AX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews McGrath Limited'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: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT