Pacific Smiles Group Limited
Pacific Smiles Group Limited Fundamental Analysis
Pacific Smiles Group Limited (PSQ.AX) shows weak financial fundamentals with a PE ratio of 178.76, profit margin of 1.01%, and ROE of 3.43%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 8.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PSQ.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakPSQ.AX struggles to generate sufficient returns from assets.
Valuation Score
WeakPSQ.AX trades at a premium to fair value.
Growth Score
ModeratePSQ.AX shows steady but slowing expansion.
Financial Health Score
WeakPSQ.AX carries high financial risk with limited liquidity.
Profitability Score
WeakPSQ.AX struggles to sustain strong margins.
Key Financial Metrics
Is PSQ.AX Expensive or Cheap?
P/E Ratio
PSQ.AX trades at 178.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PSQ.AX's PEG of 11.04 indicates potential overvaluation.
Price to Book
The market values Pacific Smiles Group Limited at 5.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.63 times EBITDA. This is generally considered low.
How Well Does PSQ.AX Make Money?
Net Profit Margin
For every $100 in sales, Pacific Smiles Group Limited keeps $1.01 as profit after all expenses.
Operating Margin
Core operations generate 10.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.43 in profit for every $100 of shareholder equity.
ROA
Pacific Smiles Group Limited generates $1.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pacific Smiles Group Limited produces operating cash flow of $28.75M, showing steady but balanced cash generation.
Free Cash Flow
Pacific Smiles Group Limited generates strong free cash flow of $23.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.14 in free cash annually.
FCF Yield
PSQ.AX converts 6.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
178.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How PSQ.AX Stacks Against Its Sector Peers
| Metric | PSQ.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 178.76 | 27.91 | Worse (Expensive) |
| ROE | 3.43% | 687.00% | Weak |
| Net Margin | 1.01% | -45285.00% (disorted) | Weak |
| Debt/Equity | 1.10 | 0.33 | Weak (High Leverage) |
| Current Ratio | 0.79 | 2795.76 | Weak Liquidity |
| ROA | 1.21% | -13557.00% (disorted) | Weak |
PSQ.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pacific Smiles Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.11%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-70.69%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-4.48%
Industry Style: Defensive, Growth, Innovation
Declining