Perenti Limited
Perenti Limited Fundamental Analysis
Perenti Limited (PRN.AX) shows moderate financial fundamentals with a PE ratio of 18.00, profit margin of 3.52%, and ROE of 6.65%. The company generates $3.5B in annual revenue with strong year-over-year growth of 16.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PRN.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakPRN.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPRN.AX trades at attractive valuation levels.
Growth Score
ModeratePRN.AX shows steady but slowing expansion.
Financial Health Score
ExcellentPRN.AX maintains a strong and stable balance sheet.
Profitability Score
WeakPRN.AX struggles to sustain strong margins.
Key Financial Metrics
Is PRN.AX Expensive or Cheap?
P/E Ratio
PRN.AX trades at 18.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PRN.AX's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Perenti Limited at 1.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.72 times EBITDA. This is generally considered low.
How Well Does PRN.AX Make Money?
Net Profit Margin
For every $100 in sales, Perenti Limited keeps $3.52 as profit after all expenses.
Operating Margin
Core operations generate 7.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.65 in profit for every $100 of shareholder equity.
ROA
Perenti Limited generates $3.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Perenti Limited produces operating cash flow of $490.82M, showing steady but balanced cash generation.
Free Cash Flow
Perenti Limited produces free cash flow of $180.31M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.19 in free cash annually.
FCF Yield
PRN.AX converts 8.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.004
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How PRN.AX Stacks Against Its Sector Peers
| Metric | PRN.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.00 | 26.70 | Better (Cheaper) |
| ROE | 6.65% | 828.00% | Weak |
| Net Margin | 3.52% | -122621.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.42 | Neutral |
| Current Ratio | 2.20 | 4.90 | Strong Liquidity |
| ROA | 3.88% | -6867.00% (disorted) | Weak |
PRN.AX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Perenti Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.41%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-63.93%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
62.33%
Industry Style: Cyclical, Commodity, Value
High Growth