Qube Holdings Limited
Qube Holdings Limited Fundamental Analysis
Qube Holdings Limited (QUB.AX) shows weak financial fundamentals with a PE ratio of 40.12, profit margin of 5.03%, and ROE of 7.13%. The company generates $4.3B in annual revenue with strong year-over-year growth of 27.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze QUB.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakQUB.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateQUB.AX shows balanced valuation metrics.
Growth Score
ModerateQUB.AX shows steady but slowing expansion.
Financial Health Score
ModerateQUB.AX shows balanced financial health with some risks.
Profitability Score
WeakQUB.AX struggles to sustain strong margins.
Key Financial Metrics
Is QUB.AX Expensive or Cheap?
P/E Ratio
QUB.AX trades at 40.12 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, QUB.AX's PEG of 0.50 indicates potential undervaluation.
Price to Book
The market values Qube Holdings Limited at 2.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.49 times EBITDA. This is generally considered low.
How Well Does QUB.AX Make Money?
Net Profit Margin
For every $100 in sales, Qube Holdings Limited keeps $5.03 as profit after all expenses.
Operating Margin
Core operations generate 5.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.13 in profit for every $100 of shareholder equity.
ROA
Qube Holdings Limited generates $3.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Qube Holdings Limited produces operating cash flow of $516.84M, showing steady but balanced cash generation.
Free Cash Flow
Qube Holdings Limited produces free cash flow of $164.61M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
QUB.AX converts 1.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How QUB.AX Stacks Against Its Sector Peers
| Metric | QUB.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.12 | 25.96 | Worse (Expensive) |
| ROE | 7.13% | 1263.00% | Weak |
| Net Margin | 5.03% | -41827.00% (disorted) | Weak |
| Debt/Equity | 1.38 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.50 | 10.05 | Neutral |
| ROA | 3.24% | -1497918.00% (disorted) | Weak |
QUB.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 Qube Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
115.87%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-44.38%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
4.54%
Industry Style: Cyclical, Value, Infrastructure
Growing