NZX Limited
NZX Limited Fundamental Analysis
NZX Limited (NZSTF) shows strong financial fundamentals with a PE ratio of 12.55, profit margin of 16.65%, and ROE of 17.86%. The company generates $0.2B in annual revenue with strong year-over-year growth of 11.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.3/100 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 NZSTF's fundamental strength across five key dimensions:
Efficiency Score
WeakNZSTF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNZSTF trades at attractive valuation levels.
Growth Score
ExcellentNZSTF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNZSTF maintains a strong and stable balance sheet.
Profitability Score
ExcellentNZSTF achieves industry-leading margins.
Key Financial Metrics
Is NZSTF Expensive or Cheap?
P/E Ratio
NZSTF trades at 12.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NZSTF's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values NZX Limited at 2.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.16 times EBITDA. This is generally considered low.
How Well Does NZSTF Make Money?
Net Profit Margin
For every $100 in sales, NZX Limited keeps $16.65 as profit after all expenses.
Operating Margin
Core operations generate 26.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.86 in profit for every $100 of shareholder equity.
ROA
NZX Limited generates $7.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NZX Limited generates strong operating cash flow of $68.60M, reflecting robust business health.
Free Cash Flow
NZX Limited generates strong free cash flow of $67.64M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.21 in free cash annually.
FCF Yield
NZSTF converts 8.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How NZSTF Stacks Against Its Sector Peers
| Metric | NZSTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.55 | 18.50 | Better (Cheaper) |
| ROE | 17.86% | 809.00% | Weak |
| Net Margin | 16.65% | 2211.00% | Weak |
| Debt/Equity | 0.66 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 6.29 | 692.04 | Strong Liquidity |
| ROA | 7.74% | -24328.00% (disorted) | Weak |
NZSTF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NZX Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.77%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
49.23%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
24.12%
Industry Style: Value, Dividend, Cyclical
High Growth