Praemium Limited
Praemium Limited Fundamental Analysis
Praemium Limited (PPS.AX) shows moderate financial fundamentals with a PE ratio of 20.79, profit margin of 16.36%, and ROE of 15.42%. The company generates $0.1B in annual revenue with weak year-over-year growth of -97.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -40.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PPS.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPPS.AX demonstrates superior asset utilization.
Valuation Score
ExcellentPPS.AX trades at attractive valuation levels.
Growth Score
ModeratePPS.AX shows steady but slowing expansion.
Financial Health Score
ExcellentPPS.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentPPS.AX achieves industry-leading margins.
Key Financial Metrics
Is PPS.AX Expensive or Cheap?
P/E Ratio
PPS.AX trades at 20.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PPS.AX's PEG of 0.68 indicates potential undervaluation.
Price to Book
The market values Praemium Limited at 3.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.54 times EBITDA. This signals the market has high growth expectations.
How Well Does PPS.AX Make Money?
Net Profit Margin
For every $100 in sales, Praemium Limited keeps $16.36 as profit after all expenses.
Operating Margin
Core operations generate 19.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.42 in profit for every $100 of shareholder equity.
ROA
Praemium Limited generates $12.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Praemium Limited produces operating cash flow of $22.12M, showing steady but balanced cash generation.
Free Cash Flow
Praemium Limited generates strong free cash flow of $19.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
PPS.AX converts 5.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How PPS.AX Stacks Against Its Sector Peers
| Metric | PPS.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.79 | 18.94 | Neutral |
| ROE | 15.42% | 846.00% | Weak |
| Net Margin | 16.36% | 4054.00% | Weak |
| Debt/Equity | 0.05 | 0.89 | Strong (Low Leverage) |
| Current Ratio | 2.78 | 660.05 | Strong Liquidity |
| ROA | 12.96% | -24865.00% (disorted) | Strong |
PPS.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Praemium Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-97.12%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
137.32%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
44.87%
Industry Style: Value, Dividend, Cyclical
High Growth