Sandfire Resources Limited
Sandfire Resources Limited Fundamental Analysis
Sandfire Resources Limited (SFRRF) shows weak financial fundamentals with a PE ratio of 37.44, profit margin of 9.86%, and ROE of 8.80%. The company generates $1.7B in annual revenue with strong year-over-year growth of 28.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.8/100 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 SFRRF's fundamental strength across five key dimensions:
Efficiency Score
WeakSFRRF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSFRRF shows balanced valuation metrics.
Growth Score
ModerateSFRRF shows steady but slowing expansion.
Financial Health Score
ExcellentSFRRF maintains a strong and stable balance sheet.
Profitability Score
WeakSFRRF struggles to sustain strong margins.
Key Financial Metrics
Is SFRRF Expensive or Cheap?
P/E Ratio
SFRRF trades at 37.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SFRRF's PEG of 1.08 indicates fair valuation.
Price to Book
The market values Sandfire Resources Limited at 3.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.20 times EBITDA. This is generally considered low.
How Well Does SFRRF Make Money?
Net Profit Margin
For every $100 in sales, Sandfire Resources Limited keeps $9.86 as profit after all expenses.
Operating Margin
Core operations generate 20.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.80 in profit for every $100 of shareholder equity.
ROA
Sandfire Resources Limited generates $5.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sandfire Resources Limited generates strong operating cash flow of $709.06M, reflecting robust business health.
Free Cash Flow
Sandfire Resources Limited generates strong free cash flow of $428.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.92 in free cash annually.
FCF Yield
SFRRF converts 6.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SFRRF Stacks Against Its Sector Peers
| Metric | SFRRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.44 | 24.71 | Worse (Expensive) |
| ROE | 8.80% | 887.00% | Weak |
| Net Margin | 9.86% | -99745.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.50 | Strong (Low Leverage) |
| Current Ratio | 1.61 | 6.80 | Neutral |
| ROA | 5.60% | -6232.00% (disorted) | Weak |
SFRRF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sandfire Resources Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-22.37%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-46.77%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-18.79%
Industry Style: Cyclical, Commodity, Value
Declining