Objective Corporation Limited
Objective Corporation Limited Fundamental Analysis
Objective Corporation Limited (OCL.AX) shows moderate financial fundamentals with a PE ratio of 40.32, profit margin of 28.54%, and ROE of 25.65%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 7.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.3/100 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 OCL.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOCL.AX demonstrates superior asset utilization.
Valuation Score
WeakOCL.AX trades at a premium to fair value.
Growth Score
ExcellentOCL.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentOCL.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentOCL.AX achieves industry-leading margins.
Key Financial Metrics
Is OCL.AX Expensive or Cheap?
P/E Ratio
OCL.AX trades at 40.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OCL.AX's PEG of 5.65 indicates potential overvaluation.
Price to Book
The market values Objective Corporation Limited at 10.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.63 times EBITDA. This signals the market has high growth expectations.
How Well Does OCL.AX Make Money?
Net Profit Margin
For every $100 in sales, Objective Corporation Limited keeps $28.54 as profit after all expenses.
Operating Margin
Core operations generate 35.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.65 in profit for every $100 of shareholder equity.
ROA
Objective Corporation Limited generates $14.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Objective Corporation Limited generates strong operating cash flow of $55.38M, reflecting robust business health.
Free Cash Flow
Objective Corporation Limited generates strong free cash flow of $38.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.40 in free cash annually.
FCF Yield
OCL.AX converts 3.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How OCL.AX Stacks Against Its Sector Peers
| Metric | OCL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.32 | 33.61 | Worse (Expensive) |
| ROE | 25.65% | 1020.00% | Weak |
| Net Margin | 28.54% | -56528.00% (disorted) | Strong |
| Debt/Equity | 0.16 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.55 | 5.65 | Neutral |
| ROA | 14.09% | -291484.00% (disorted) | Strong |
OCL.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Objective Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.59%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
209.17%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
52.62%
Industry Style: Growth, Innovation, High Beta
High Growth