MFF Capital Investments Limited Fundamental Analysis (ASX: MFF.AX)
MFF Capital Investments Limited Fundamental Analysis (ASX: MFF.AX)
MFF Capital Investments Limited (ASX: MFF.AX) shows weak financial fundamentals with a PE ratio of 18.44, profit margin of 2.48%, and ROE of 6.21%. 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 64.1/100 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 MFF.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakMFF.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMFF.AX trades at attractive valuation levels.
Growth Score
ModerateMFF.AX shows steady but slowing expansion.
Financial Health Score
ExcellentMFF.AX maintains a strong and stable balance sheet.
Profitability Score
WeakMFF.AX struggles to sustain strong margins.
Key Financial Metrics
Is MFF.AX Expensive or Cheap?
P/E Ratio
MFF.AX trades at 18.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MFF.AX's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values MFF Capital Investments Limited at 1.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.62 times EBITDA. This signals the market has high growth expectations.
How Well Does MFF.AX Make Money?
Net Profit Margin
For every $100 in sales, MFF Capital Investments Limited keeps $2.48 as profit after all expenses.
Operating Margin
Core operations generate 3.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.21 in profit for every $100 of shareholder equity.
ROA
MFF Capital Investments Limited generates $5.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MFF Capital Investments Limited produces operating cash flow of $15.14M, showing steady but balanced cash generation.
Free Cash Flow
MFF Capital Investments Limited generates strong free cash flow of $14.23M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
MFF.AX converts 0.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
46.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6335.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How MFF.AX Stacks Against Its Sector Peers
| Metric | MFF.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.44 | 20.34 | Neutral |
| ROE | 6.21% | 640.00% | Weak |
| Net Margin | 248.02% | -531.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 6335.95 | 826.48 | Strong Liquidity |
| ROA | 5.36% | 57.00% | Weak |
MFF.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 MFF Capital Investments 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: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical