Shriro Holdings Limited
Shriro Holdings Limited Fundamental Analysis
Shriro Holdings Limited (SHM.AX) shows moderate financial fundamentals with a PE ratio of 7.51, profit margin of 7.48%, and ROE of 22.37%. The company generates $0.1B in annual revenue with weak year-over-year growth of -4.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SHM.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSHM.AX demonstrates superior asset utilization.
Valuation Score
ExcellentSHM.AX trades at attractive valuation levels.
Growth Score
WeakSHM.AX faces weak or negative growth trends.
Financial Health Score
ExcellentSHM.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateSHM.AX maintains healthy but balanced margins.
Key Financial Metrics
Is SHM.AX Expensive or Cheap?
P/E Ratio
SHM.AX trades at 7.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SHM.AX's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Shriro Holdings Limited at 1.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.22 times EBITDA. This is generally considered low.
How Well Does SHM.AX Make Money?
Net Profit Margin
For every $100 in sales, Shriro Holdings Limited keeps $7.48 as profit after all expenses.
Operating Margin
Core operations generate 8.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.37 in profit for every $100 of shareholder equity.
ROA
Shriro Holdings Limited generates $13.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shriro Holdings Limited produces operating cash flow of $12.34M, showing steady but balanced cash generation.
Free Cash Flow
Shriro Holdings Limited generates strong free cash flow of $11.56M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
SHM.AX converts 22.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How SHM.AX Stacks Against Its Sector Peers
| Metric | SHM.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.51 | 23.80 | Better (Cheaper) |
| ROE | 22.37% | 1105.00% | Weak |
| Net Margin | 7.48% | -512.00% (disorted) | Weak |
| Debt/Equity | 0.53 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 2.77 | 2.64 | Strong Liquidity |
| ROA | 13.39% | -8048.00% (disorted) | Strong |
SHM.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shriro Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-31.65%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
5.10%
Industry Style: Cyclical, Growth, Discretionary
GrowingFCF CAGR
57.61%
Industry Style: Cyclical, Growth, Discretionary
High Growth