RIT Capital Partners plc
RIT Capital Partners plc Fundamental Analysis
RIT Capital Partners plc (RITPF) shows moderate financial fundamentals with a PE ratio of 6.65, profit margin of 2.74%, and ROE of 11.74%. The company generates $0.2B in annual revenue with weak year-over-year growth of 2.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RITPF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRITPF demonstrates superior asset utilization.
Valuation Score
ExcellentRITPF trades at attractive valuation levels.
Growth Score
WeakRITPF faces weak or negative growth trends.
Financial Health Score
ExcellentRITPF maintains a strong and stable balance sheet.
Profitability Score
WeakRITPF struggles to sustain strong margins.
Key Financial Metrics
Is RITPF Expensive or Cheap?
P/E Ratio
RITPF trades at 6.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RITPF's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values RIT Capital Partners plc at 0.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.23 times EBITDA. This is generally considered low.
How Well Does RITPF Make Money?
Net Profit Margin
For every $100 in sales, RIT Capital Partners plc keeps $2.74 as profit after all expenses.
Operating Margin
Core operations generate 2.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.74 in profit for every $100 of shareholder equity.
ROA
RIT Capital Partners plc generates $10.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RIT Capital Partners plc generates strong operating cash flow of $291.69M, reflecting robust business health.
Free Cash Flow
RIT Capital Partners plc generates strong free cash flow of $291.13M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.03 in free cash annually.
FCF Yield
RITPF converts 6.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How RITPF Stacks Against Its Sector Peers
| Metric | RITPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.65 | 18.50 | Better (Cheaper) |
| ROE | 11.74% | 809.00% | Weak |
| Net Margin | 274.02% | 2211.00% | Weak |
| Debt/Equity | 0.08 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 2.21 | 691.82 | Strong Liquidity |
| ROA | 10.51% | -24320.00% (disorted) | Strong |
RITPF outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RIT Capital Partners plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
Declining