Resolute Mining Limited Fundamental Analysis (ASX: RSG.AX)
Resolute Mining Limited (ASX: RSG.AX) shows strong financial fundamentals with a PE ratio of 11.45, profit margin of 17.86%, and ROE of 23.30%. The company generates $1.0B in annual revenue with strong year-over-year growth of 11.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.5/100 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 RSG.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRSG.AX demonstrates superior asset utilization.
Valuation Score
ExcellentRSG.AX trades at attractive valuation levels.
Growth Score
ModerateRSG.AX shows steady but slowing expansion.
Financial Health Score
ExcellentRSG.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentRSG.AX achieves industry-leading margins.
Key Financial Metrics
Is RSG.AX Expensive or Cheap?
P/E Ratio
RSG.AX trades at 11.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RSG.AX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Resolute Mining Limited at 2.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.51 times EBITDA. This is generally considered low.
How Well Does RSG.AX Make Money?
Net Profit Margin
For every $100 in sales, Resolute Mining Limited keeps $17.86 as profit after all expenses.
Operating Margin
Core operations generate 34.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.30 in profit for every $100 of shareholder equity.
ROA
Resolute Mining Limited generates $13.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Resolute Mining Limited generates strong operating cash flow of $386.46M, reflecting robust business health.
Free Cash Flow
Resolute Mining Limited generates strong free cash flow of $263.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
RSG.AX converts 12.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How RSG.AX Stacks Against Its Sector Peers
| Metric | RSG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.45 | 27.37 | Better (Cheaper) |
| ROE | 23.30% | 1190.00% | Weak |
| Net Margin | 17.86% | 204.00% | Weak |
| Debt/Equity | 0.20 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.61 | 3.14 | Neutral |
| ROA | 13.96% | 2758.00% | Weak |
RSG.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 Resolute Mining Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-23.58%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
268.68%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
184.22%
Industry Style: Cyclical, Commodity, Value
High Growth