Northern Star Resources Limited
Northern Star Resources Limited Fundamental Analysis
Northern Star Resources Limited (NESRF) shows strong financial fundamentals with a PE ratio of 27.09, profit margin of 22.24%, and ROE of 10.26%. The company generates $7.0B in annual revenue with strong year-over-year growth of 30.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.1/100 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 NESRF's fundamental strength across five key dimensions:
Efficiency Score
WeakNESRF struggles to generate sufficient returns from assets.
Valuation Score
WeakNESRF trades at a premium to fair value.
Growth Score
ModerateNESRF shows steady but slowing expansion.
Financial Health Score
ExcellentNESRF maintains a strong and stable balance sheet.
Profitability Score
ModerateNESRF maintains healthy but balanced margins.
Key Financial Metrics
Is NESRF Expensive or Cheap?
P/E Ratio
NESRF trades at 27.09 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NESRF's PEG of 4.28 indicates potential overvaluation.
Price to Book
The market values Northern Star Resources Limited at 2.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.46 times EBITDA. This signals the market has high growth expectations.
How Well Does NESRF Make Money?
Net Profit Margin
For every $100 in sales, Northern Star Resources Limited keeps $22.24 as profit after all expenses.
Operating Margin
Core operations generate 35.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.26 in profit for every $100 of shareholder equity.
ROA
Northern Star Resources Limited generates $7.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Northern Star Resources Limited generates strong operating cash flow of $2.73B, reflecting robust business health.
Free Cash Flow
Northern Star Resources Limited produces free cash flow of $446.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
NESRF converts 1.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How NESRF Stacks Against Its Sector Peers
| Metric | NESRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.09 | 27.01 | Neutral |
| ROE | 10.26% | 949.00% | Weak |
| Net Margin | 22.24% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.14 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 1.74 | 4.42 | Neutral |
| ROA | 7.48% | -6411.00% (disorted) | Weak |
NESRF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Northern Star Resources Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
87.76%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
199.28%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
139.91%
Industry Style: Cyclical, Commodity, Value
High Growth