Ricardo plc
Ricardo plc Fundamental Analysis
Ricardo plc (RCDOF) shows weak financial fundamentals with a PE ratio of 180.65, profit margin of 0.15%, and ROE of 0.41%. The company generates $0.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RCDOF's fundamental strength across five key dimensions:
Efficiency Score
WeakRCDOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateRCDOF shows balanced valuation metrics.
Growth Score
WeakRCDOF faces weak or negative growth trends.
Financial Health Score
ExcellentRCDOF maintains a strong and stable balance sheet.
Profitability Score
ModerateRCDOF maintains healthy but balanced margins.
Key Financial Metrics
Is RCDOF Expensive or Cheap?
P/E Ratio
RCDOF trades at 180.65 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RCDOF's PEG of -0.17 indicates potential undervaluation.
Price to Book
The market values Ricardo plc at 0.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.34 times EBITDA. This is generally considered low.
How Well Does RCDOF Make Money?
Net Profit Margin
For every $100 in sales, Ricardo plc keeps $0.15 as profit after all expenses.
Operating Margin
Core operations generate 2.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.41 in profit for every $100 of shareholder equity.
ROA
Ricardo plc generates $0.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ricardo plc generates limited operating cash flow of $25.90M, signaling weaker underlying cash strength.
Free Cash Flow
Ricardo plc produces free cash flow of $14.60M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.23 in free cash annually.
FCF Yield
RCDOF converts 11.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
180.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.004
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How RCDOF Stacks Against Its Sector Peers
| Metric | RCDOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 180.65 | 26.89 | Worse (Expensive) |
| ROE | 0.41% | 1304.00% | Weak |
| Net Margin | 0.15% | -29196.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.75 | Neutral |
| Current Ratio | 1.86 | 10.90 | Neutral |
| ROA | 0.16% | -1543746.00% (disorted) | Weak |
RCDOF 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 Ricardo plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure