REA Group Limited
REA Group Limited Fundamental Analysis
REA Group Limited (RPGRY) shows strong financial fundamentals with a PE ratio of 36.94, profit margin of 29.25%, and ROE of 28.58%. The company generates $1.9B in annual revenue with strong year-over-year growth of 15.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.2/100 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 RPGRY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRPGRY demonstrates superior asset utilization.
Valuation Score
ModerateRPGRY shows balanced valuation metrics.
Growth Score
ModerateRPGRY shows steady but slowing expansion.
Financial Health Score
ExcellentRPGRY maintains a strong and stable balance sheet.
Profitability Score
ExcellentRPGRY achieves industry-leading margins.
Key Financial Metrics
Is RPGRY Expensive or Cheap?
P/E Ratio
RPGRY trades at 36.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RPGRY's PEG of -1.61 indicates potential undervaluation.
Price to Book
The market values REA Group Limited at 10.19 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.44 times EBITDA. This signals the market has high growth expectations.
How Well Does RPGRY Make Money?
Net Profit Margin
For every $100 in sales, REA Group Limited keeps $29.25 as profit after all expenses.
Operating Margin
Core operations generate 41.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.58 in profit for every $100 of shareholder equity.
ROA
REA Group Limited generates $19.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
REA Group Limited generates strong operating cash flow of $716.99M, reflecting robust business health.
Free Cash Flow
REA Group Limited generates strong free cash flow of $711.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.35 in free cash annually.
FCF Yield
RPGRY converts 3.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How RPGRY Stacks Against Its Sector Peers
| Metric | RPGRY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.94 | 22.05 | Worse (Expensive) |
| ROE | 28.58% | 1173.00% | Weak |
| Net Margin | 29.25% | -64583.00% (disorted) | Strong |
| Debt/Equity | 0.09 | 1.36 | Strong (Low Leverage) |
| Current Ratio | 2.83 | 1.58 | Strong Liquidity |
| ROA | 19.11% | -200331.00% (disorted) | Strong |
RPGRY outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews REA Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
118.13%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
501.74%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
60.73%
Industry Style: Growth, Technology, Streaming
High Growth