Resource Development Group Limited Fundamental Analysis (ASX: RDG.AX)
Resource Development Group Limited Fundamental Analysis (ASX: RDG.AX)
Resource Development Group Limited (ASX: RDG.AX) shows moderate financial fundamentals with a PE ratio of 1.33, profit margin of 12.77%, and ROE of 14.48%. The company generates $0.1B 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 49.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RDG.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakRDG.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRDG.AX trades at attractive valuation levels.
Growth Score
ModerateRDG.AX shows steady but slowing expansion.
Financial Health Score
ExcellentRDG.AX maintains a strong and stable balance sheet.
Profitability Score
WeakRDG.AX struggles to sustain strong margins.
Key Financial Metrics
Is RDG.AX Expensive or Cheap?
P/E Ratio
RDG.AX trades at 1.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RDG.AX's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Resource Development Group Limited at 0.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.15 times EBITDA. This is generally considered low.
How Well Does RDG.AX Make Money?
Net Profit Margin
For every $100 in sales, Resource Development Group Limited keeps $12.77 as profit after all expenses.
Operating Margin
Core operations generate 18.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.48 in profit for every $100 of shareholder equity.
ROA
Resource Development Group Limited generates $4.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Resource Development Group Limited produces operating cash flow of $33.71M, showing steady but balanced cash generation.
Free Cash Flow
Resource Development Group Limited produces free cash flow of $7.94M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
RDG.AX converts 33.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.004
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How RDG.AX Stacks Against Its Sector Peers
| Metric | RDG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.33 | 30.44 | Better (Cheaper) |
| ROE | 14.48% | 1101.00% | Weak |
| Net Margin | 12.77% | -25210.00% (disorted) | Strong |
| Debt/Equity | 0.92 | 0.95 | Neutral |
| Current Ratio | 1.00 | 21.67 | Neutral |
| ROA | 4.93% | -1323324.00% (disorted) | Weak |
RDG.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Resource Development Group 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: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure