Ratos AB (publ)
Ratos AB (publ) Fundamental Analysis
Ratos AB (publ) (RTOBF) shows moderate financial fundamentals with a PE ratio of 5.68, profit margin of 11.04%, and ROE of 14.73%. The company generates $18.8B in annual revenue with weak year-over-year growth of -41.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RTOBF's fundamental strength across five key dimensions:
Efficiency Score
WeakRTOBF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRTOBF trades at attractive valuation levels.
Growth Score
WeakRTOBF faces weak or negative growth trends.
Financial Health Score
ExcellentRTOBF maintains a strong and stable balance sheet.
Profitability Score
WeakRTOBF struggles to sustain strong margins.
Key Financial Metrics
Is RTOBF Expensive or Cheap?
P/E Ratio
RTOBF trades at 5.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RTOBF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Ratos AB (publ) at 0.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.65 times EBITDA. This is generally considered low.
How Well Does RTOBF Make Money?
Net Profit Margin
For every $100 in sales, Ratos AB (publ) keeps $11.04 as profit after all expenses.
Operating Margin
Core operations generate -5.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.73 in profit for every $100 of shareholder equity.
ROA
Ratos AB (publ) generates $7.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ratos AB (publ) produces operating cash flow of $2.59B, showing steady but balanced cash generation.
Free Cash Flow
Ratos AB (publ) generates strong free cash flow of $2.17B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.62 in free cash annually.
FCF Yield
RTOBF converts 18.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How RTOBF Stacks Against Its Sector Peers
| Metric | RTOBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.68 | 19.04 | Better (Cheaper) |
| ROE | 14.73% | 808.00% | Weak |
| Net Margin | 11.04% | -7820.00% (disorted) | Strong |
| Debt/Equity | 0.66 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 1.17 | 611.26 | Neutral |
| ROA | 7.14% | -23985.00% (disorted) | Weak |
RTOBF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ratos AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-12.37%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-196.04%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-30.14%
Industry Style: Value, Dividend, Cyclical
Declining