ReadCloud Limited
ReadCloud Limited Fundamental Analysis
ReadCloud Limited (RCL.AX) shows weak financial fundamentals with a PE ratio of -26.23, profit margin of -3.29%, and ROE of -4.22%. The company generates $0.0B 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 24.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RCL.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakRCL.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRCL.AX trades at attractive valuation levels.
Growth Score
WeakRCL.AX faces weak or negative growth trends.
Financial Health Score
ExcellentRCL.AX maintains a strong and stable balance sheet.
Profitability Score
WeakRCL.AX struggles to sustain strong margins.
Key Financial Metrics
Is RCL.AX Expensive or Cheap?
P/E Ratio
RCL.AX trades at -26.23 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RCL.AX's PEG of -0.26 indicates potential undervaluation.
Price to Book
The market values ReadCloud Limited at 1.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 59.10 times EBITDA. This signals the market has high growth expectations.
How Well Does RCL.AX Make Money?
Net Profit Margin
For every $100 in sales, ReadCloud Limited keeps $-3.29 as profit after all expenses.
Operating Margin
Core operations generate -5.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.22 in profit for every $100 of shareholder equity.
ROA
ReadCloud Limited generates $-3.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ReadCloud Limited generates limited operating cash flow of $525.21K, signaling weaker underlying cash strength.
Free Cash Flow
ReadCloud Limited produces free cash flow of $498.55K, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
RCL.AX converts 4.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-26.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.08
vs 25 benchmark
How RCL.AX Stacks Against Its Sector Peers
| Metric | RCL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -26.23 | 33.98 | Better (Cheaper) |
| ROE | -4.22% | 1007.00% | Weak |
| Net Margin | -3.29% | -47798.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 1.26 | 5.66 | Neutral |
| ROA | -3.59% | -287356.00% (disorted) | Weak |
RCL.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 ReadCloud Limited'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: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta