Pepper Money Limited
Pepper Money Limited Fundamental Analysis
Pepper Money Limited (PPM.AX) shows moderate financial fundamentals with a PE ratio of 7.43, profit margin of 11.42%, and ROE of 12.70%. The company generates $0.9B in annual revenue with weak year-over-year growth of -3.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PPM.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakPPM.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPPM.AX trades at attractive valuation levels.
Growth Score
WeakPPM.AX faces weak or negative growth trends.
Financial Health Score
WeakPPM.AX carries high financial risk with limited liquidity.
Profitability Score
WeakPPM.AX struggles to sustain strong margins.
Key Financial Metrics
Is PPM.AX Expensive or Cheap?
P/E Ratio
PPM.AX trades at 7.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PPM.AX's PEG of 1.71 indicates fair valuation.
Price to Book
The market values Pepper Money Limited at 0.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -13.65 times EBITDA. This is generally considered low.
How Well Does PPM.AX Make Money?
Net Profit Margin
For every $100 in sales, Pepper Money Limited keeps $11.42 as profit after all expenses.
Operating Margin
Core operations generate 68.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.70 in profit for every $100 of shareholder equity.
ROA
Pepper Money Limited generates $0.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pepper Money Limited generates limited operating cash flow of $-723.14M, signaling weaker underlying cash strength.
Free Cash Flow
Pepper Money Limited generates weak or negative free cash flow of $-719.50M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.60 in free cash annually.
FCF Yield
PPM.AX converts -90.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
20.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How PPM.AX Stacks Against Its Sector Peers
| Metric | PPM.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.43 | 18.66 | Better (Cheaper) |
| ROE | 12.70% | 804.00% | Weak |
| Net Margin | 11.42% | 2258.00% | Weak |
| Debt/Equity | 20.02 | 1.03 | Weak (High Leverage) |
| Current Ratio | 0.00 | 662.03 | Weak Liquidity |
| ROA | 0.57% | -24049.00% (disorted) | Weak |
PPM.AX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pepper Money Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1068.56%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
2840.29%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
100.00%
Industry Style: Value, Dividend, Cyclical
High Growth