Macquarie Group Limited
Macquarie Group Limited Fundamental Analysis
Macquarie Group Limited (MQG.AX) shows moderate financial fundamentals with a PE ratio of 20.83, profit margin of 14.92%, and ROE of 10.75%. The company generates $25.1B 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 3.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MQG.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakMQG.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateMQG.AX shows balanced valuation metrics.
Growth Score
WeakMQG.AX faces weak or negative growth trends.
Financial Health Score
WeakMQG.AX carries high financial risk with limited liquidity.
Profitability Score
WeakMQG.AX struggles to sustain strong margins.
Key Financial Metrics
Is MQG.AX Expensive or Cheap?
P/E Ratio
MQG.AX trades at 20.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MQG.AX's PEG of 17.01 indicates potential overvaluation.
Price to Book
The market values Macquarie Group Limited at 2.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.34 times EBITDA. This is generally considered low.
How Well Does MQG.AX Make Money?
Net Profit Margin
For every $100 in sales, Macquarie Group Limited keeps $14.92 as profit after all expenses.
Operating Margin
Core operations generate 16.01 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 limited operating cash flow of $-850.83M, signaling weaker underlying cash strength.
Free Cash Flow
Macquarie Group Limited generates weak or negative free cash flow of $-1.77B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.84 in free cash annually.
FCF Yield
MQG.AX converts -2.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
17.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
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
0.008
vs 25 benchmark
How MQG.AX Stacks Against Its Sector Peers
| Metric | MQG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.83 | 18.94 | Neutral |
| ROE | 10.75% | 846.00% | Weak |
| Net Margin | 14.92% | 4054.00% | Weak |
| Debt/Equity | 4.94 | 0.89 | Weak (High Leverage) |
| Current Ratio | 0.00 | 660.05 | Weak Liquidity |
| ROA | 0.78% | -24865.00% (disorted) | Weak |
MQG.AX outperforms its industry in 0 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