NRW Holdings Limited
NRW Holdings Limited Fundamental Analysis
NRW Holdings Limited (NWH.AX) shows weak financial fundamentals with a PE ratio of 50.40, profit margin of 1.36%, and ROE of 7.79%. The company generates $3.6B in annual revenue with strong year-over-year growth of 12.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NWH.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakNWH.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateNWH.AX shows balanced valuation metrics.
Growth Score
ModerateNWH.AX shows steady but slowing expansion.
Financial Health Score
ExcellentNWH.AX maintains a strong and stable balance sheet.
Profitability Score
WeakNWH.AX struggles to sustain strong margins.
Key Financial Metrics
Is NWH.AX Expensive or Cheap?
P/E Ratio
NWH.AX trades at 50.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NWH.AX's PEG of 0.55 indicates potential undervaluation.
Price to Book
The market values NRW Holdings Limited at 3.83 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.12 times EBITDA. This is generally considered low.
How Well Does NWH.AX Make Money?
Net Profit Margin
For every $100 in sales, NRW Holdings Limited keeps $1.36 as profit after all expenses.
Operating Margin
Core operations generate 2.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.79 in profit for every $100 of shareholder equity.
ROA
NRW Holdings Limited generates $2.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NRW Holdings Limited generates limited operating cash flow of $277.89M, signaling weaker underlying cash strength.
Free Cash Flow
NRW Holdings Limited produces free cash flow of $168.32M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.37 in free cash annually.
FCF Yield
NWH.AX converts 6.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NWH.AX Stacks Against Its Sector Peers
| Metric | NWH.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.40 | 25.96 | Worse (Expensive) |
| ROE | 7.79% | 1263.00% | Weak |
| Net Margin | 1.36% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.90 | 0.79 | Neutral |
| Current Ratio | 1.02 | 10.05 | Neutral |
| ROA | 2.38% | -1497918.00% (disorted) | Weak |
NWH.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NRW Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.58%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-66.72%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
3.39%
Industry Style: Cyclical, Value, Infrastructure
Growing