Channel Infrastructure NZ Limited
Channel Infrastructure NZ Limited Fundamental Analysis
Channel Infrastructure NZ Limited (NZRFF) shows weak financial fundamentals with a PE ratio of 99.49, profit margin of 8.41%, and ROE of 1.49%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 6.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NZRFF's fundamental strength across five key dimensions:
Efficiency Score
WeakNZRFF struggles to generate sufficient returns from assets.
Valuation Score
WeakNZRFF trades at a premium to fair value.
Growth Score
ModerateNZRFF shows steady but slowing expansion.
Financial Health Score
ExcellentNZRFF maintains a strong and stable balance sheet.
Profitability Score
ModerateNZRFF maintains healthy but balanced margins.
Key Financial Metrics
Is NZRFF Expensive or Cheap?
P/E Ratio
NZRFF trades at 99.49 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NZRFF's PEG of 2.04 indicates potential overvaluation.
Price to Book
The market values Channel Infrastructure NZ Limited at 1.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.07 times EBITDA. This is generally considered low.
How Well Does NZRFF Make Money?
Net Profit Margin
For every $100 in sales, Channel Infrastructure NZ Limited keeps $8.41 as profit after all expenses.
Operating Margin
Core operations generate 50.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.49 in profit for every $100 of shareholder equity.
ROA
Channel Infrastructure NZ Limited generates $0.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Channel Infrastructure NZ Limited generates strong operating cash flow of $74.38M, reflecting robust business health.
Free Cash Flow
Channel Infrastructure NZ Limited generates strong free cash flow of $24.24M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
NZRFF converts 2.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
99.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How NZRFF Stacks Against Its Sector Peers
| Metric | NZRFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 99.49 | 21.17 | Worse (Expensive) |
| ROE | 1.49% | 943.00% | Weak |
| Net Margin | 8.41% | -75302.00% (disorted) | Weak |
| Debt/Equity | 0.43 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.03 | 6.33 | Neutral |
| ROA | 0.87% | -10948340.00% (disorted) | Weak |
NZRFF 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 Channel Infrastructure NZ Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-65.66%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
173.77%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-54.51%
Industry Style: Cyclical, Value, Commodity
Declining