Opthea Limited Fundamental Analysis
Opthea Limited (OPT.AX) shows weak financial fundamentals with a PE ratio of 2.87, profit margin of -1288.71%, and ROE of -3.12%. The company generates $-0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -121169.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OPT.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOPT.AX demonstrates superior asset utilization.
Valuation Score
ExcellentOPT.AX trades at attractive valuation levels.
Growth Score
ModerateOPT.AX shows steady but slowing expansion.
Financial Health Score
ExcellentOPT.AX maintains a strong and stable balance sheet.
Profitability Score
WeakOPT.AX struggles to sustain strong margins.
Key Financial Metrics
Is OPT.AX Expensive or Cheap?
P/E Ratio
OPT.AX trades at 2.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OPT.AX's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Opthea Limited at 24.64 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -7.93 times EBITDA. This is generally considered low.
How Well Does OPT.AX Make Money?
Net Profit Margin
For every $100 in sales, Opthea Limited keeps $-1288.71 as profit after all expenses.
Operating Margin
Core operations generate 146.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.12 in profit for every $100 of shareholder equity.
ROA
Opthea Limited generates $11.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Opthea Limited generates strong operating cash flow of $-126.35M, reflecting robust business health.
Free Cash Flow
Opthea Limited generates strong free cash flow of $-123.64M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $-0.09 in free cash annually.
FCF Yield
OPT.AX converts -21.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
24.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
-2647.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
19.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-3.12
vs 25 benchmark
ROA
Return on assets percentage
11.69
vs 25 benchmark
ROCE
Return on capital employed
-1.40
vs 25 benchmark
How OPT.AX Stacks Against Its Sector Peers
| Metric | OPT.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.87 | 30.23 | Better (Cheaper) |
| ROE | -312.02% | 403.00% | Weak |
| Net Margin | -128871.09% | -11442.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 19.52 | 4.98 | Strong Liquidity |
| ROA | 1168.69% | -248.00% (disorted) | Strong |
OPT.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Opthea Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation