Pan African Resources PLC
Pan African Resources PLC Fundamental Analysis
Pan African Resources PLC (PAFRF) shows strong financial fundamentals with a PE ratio of 14.37, profit margin of 30.30%, and ROE of 62.06%. The company generates $1.1B in annual revenue with strong year-over-year growth of 44.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PAFRF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPAFRF demonstrates superior asset utilization.
Valuation Score
ExcellentPAFRF trades at attractive valuation levels.
Growth Score
ExcellentPAFRF delivers strong and consistent growth momentum.
Financial Health Score
ModeratePAFRF shows balanced financial health with some risks.
Profitability Score
ExcellentPAFRF achieves industry-leading margins.
Key Financial Metrics
Is PAFRF Expensive or Cheap?
P/E Ratio
PAFRF trades at 14.37 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PAFRF's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Pan African Resources PLC at 7.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.78 times EBITDA. This is generally considered low.
How Well Does PAFRF Make Money?
Net Profit Margin
For every $100 in sales, Pan African Resources PLC keeps $30.30 as profit after all expenses.
Operating Margin
Core operations generate 49.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $62.06 in profit for every $100 of shareholder equity.
ROA
Pan African Resources PLC generates $29.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pan African Resources PLC generates strong operating cash flow of $497.68M, reflecting robust business health.
Free Cash Flow
Pan African Resources PLC generates strong free cash flow of $243.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
PAFRF converts 4.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.62
vs 25 benchmark
ROA
Return on assets percentage
0.30
vs 25 benchmark
ROCE
Return on capital employed
0.56
vs 25 benchmark
How PAFRF Stacks Against Its Sector Peers
| Metric | PAFRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.37 | 27.01 | Better (Cheaper) |
| ROE | 62.06% | 949.00% | Weak |
| Net Margin | 30.30% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.20 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 0.98 | 4.42 | Weak Liquidity |
| ROA | 29.58% | -6411.00% (disorted) | Strong |
PAFRF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pan African Resources PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
96.91%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
219.51%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
187.54%
Industry Style: Cyclical, Commodity, Value
High Growth