Platinum Investment Management Limited
Platinum Investment Management Limited Fundamental Analysis
Platinum Investment Management Limited (PTM.AX) shows weak financial fundamentals with a PE ratio of 61.75, profit margin of 4.45%, and ROE of 3.05%. The company generates $0.1B in annual revenue with weak year-over-year growth of -12.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PTM.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakPTM.AX struggles to generate sufficient returns from assets.
Valuation Score
ModeratePTM.AX shows balanced valuation metrics.
Growth Score
WeakPTM.AX faces weak or negative growth trends.
Financial Health Score
ExcellentPTM.AX maintains a strong and stable balance sheet.
Profitability Score
WeakPTM.AX struggles to sustain strong margins.
Key Financial Metrics
Is PTM.AX Expensive or Cheap?
P/E Ratio
PTM.AX trades at 61.75 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PTM.AX's PEG of -0.71 indicates potential undervaluation.
Price to Book
The market values Platinum Investment Management Limited at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.10 times EBITDA. This signals the market has high growth expectations.
How Well Does PTM.AX Make Money?
Net Profit Margin
For every $100 in sales, Platinum Investment Management Limited keeps $4.45 as profit after all expenses.
Operating Margin
Core operations generate 20.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.05 in profit for every $100 of shareholder equity.
ROA
Platinum Investment Management Limited generates $2.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Platinum Investment Management Limited generates strong operating cash flow of $51.39M, reflecting robust business health.
Free Cash Flow
Platinum Investment Management Limited generates strong free cash flow of $50.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
PTM.AX converts 13.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
61.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How PTM.AX Stacks Against Its Sector Peers
| Metric | PTM.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 61.75 | 19.04 | Worse (Expensive) |
| ROE | 3.05% | 808.00% | Weak |
| Net Margin | 4.45% | -7820.00% (disorted) | Weak |
| Debt/Equity | 0.05 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 5.25 | 611.26 | Strong Liquidity |
| ROA | 2.51% | -23985.00% (disorted) | Weak |
PTM.AX outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Platinum Investment Management Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-35.98%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-70.60%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-50.67%
Industry Style: Value, Dividend, Cyclical
Declining