Ramelius Resources Limited Fundamental Analysis (ASX: RMS.AX)
Ramelius Resources Limited (ASX: RMS.AX) shows weak financial fundamentals with a PE ratio of 60.86, profit margin of 11.51%, and ROE of 3.01%. The company generates $1.0B 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 52.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RMS.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakRMS.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateRMS.AX shows balanced valuation metrics.
Growth Score
ModerateRMS.AX shows steady but slowing expansion.
Financial Health Score
ExcellentRMS.AX maintains a strong and stable balance sheet.
Profitability Score
WeakRMS.AX struggles to sustain strong margins.
Key Financial Metrics
Is RMS.AX Expensive or Cheap?
P/E Ratio
RMS.AX trades at 60.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RMS.AX's PEG of -0.72 indicates potential undervaluation.
Price to Book
The market values Ramelius Resources Limited at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.12 times EBITDA. This signals the market has high growth expectations.
How Well Does RMS.AX Make Money?
Net Profit Margin
For every $100 in sales, Ramelius Resources Limited keeps $11.51 as profit after all expenses.
Operating Margin
Core operations generate 42.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.01 in profit for every $100 of shareholder equity.
ROA
Ramelius Resources Limited generates $2.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ramelius Resources Limited generates strong operating cash flow of $543.53M, reflecting robust business health.
Free Cash Flow
Ramelius Resources Limited generates strong free cash flow of $287.93M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.15 in free cash annually.
FCF Yield
RMS.AX converts 4.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How RMS.AX Stacks Against Its Sector Peers
| Metric | RMS.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.86 | 25.31 | Worse (Expensive) |
| ROE | 3.01% | 1272.00% | Weak |
| Net Margin | 11.51% | 452.00% | Weak |
| Debt/Equity | 0.02 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.14 | 3.16 | Strong Liquidity |
| ROA | 2.43% | 2664.00% | Weak |
RMS.AX outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ramelius Resources 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, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value