Paladin Energy Ltd Fundamental Analysis (ASX: PDN.AX)
Paladin Energy Ltd (ASX: PDN.AX) shows weak financial fundamentals with a PE ratio of 584.54, profit margin of 1.75%, and ROE of 0.46%. The company generates $0.3B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PDN.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakPDN.AX struggles to generate sufficient returns from assets.
Valuation Score
WeakPDN.AX trades at a premium to fair value.
Growth Score
WeakPDN.AX faces weak or negative growth trends.
Financial Health Score
ExcellentPDN.AX maintains a strong and stable balance sheet.
Profitability Score
WeakPDN.AX struggles to sustain strong margins.
Key Financial Metrics
Is PDN.AX Expensive or Cheap?
P/E Ratio
PDN.AX trades at 584.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PDN.AX's PEG of 6.61 indicates potential overvaluation.
Price to Book
The market values Paladin Energy Ltd at 2.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 48.14 times EBITDA. This signals the market has high growth expectations.
How Well Does PDN.AX Make Money?
Net Profit Margin
For every $100 in sales, Paladin Energy Ltd keeps $1.75 as profit after all expenses.
Operating Margin
Core operations generate 4.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.46 in profit for every $100 of shareholder equity.
ROA
Paladin Energy Ltd generates $0.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Paladin Energy Ltd produces operating cash flow of $37.54M, showing steady but balanced cash generation.
Free Cash Flow
Paladin Energy Ltd generates weak or negative free cash flow of $-27.98M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.06 in free cash annually.
FCF Yield
PDN.AX converts -0.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
584.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How PDN.AX Stacks Against Its Sector Peers
| Metric | PDN.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 584.54 | 20.77 | Worse (Expensive) |
| ROE | 0.46% | 1282.00% | Weak |
| Net Margin | 1.75% | 1331.00% | Weak |
| Debt/Equity | 0.15 | -1.72 (disorted) | Distorted |
| Current Ratio | 3.68 | 2.22 | Strong Liquidity |
| ROA | 0.39% | 4316.00% | Weak |
PDN.AX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Paladin Energy Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
68.79%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
81.50%
Industry Style: Cyclical, Value, Commodity
High Growth