South32 Limited
South32 Limited Fundamental Analysis
South32 Limited (SHTLF) shows weak financial fundamentals with a PE ratio of 46.45, profit margin of 5.32%, and ROE of 3.30%. The company generates $5.6B in annual revenue with moderate year-over-year growth of 5.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SHTLF's fundamental strength across five key dimensions:
Efficiency Score
WeakSHTLF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSHTLF shows balanced valuation metrics.
Growth Score
ModerateSHTLF shows steady but slowing expansion.
Financial Health Score
ExcellentSHTLF maintains a strong and stable balance sheet.
Profitability Score
WeakSHTLF struggles to sustain strong margins.
Key Financial Metrics
Is SHTLF Expensive or Cheap?
P/E Ratio
SHTLF trades at 46.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SHTLF's PEG of 1.50 indicates fair valuation.
Price to Book
The market values South32 Limited at 1.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.35 times EBITDA. This signals the market has high growth expectations.
How Well Does SHTLF Make Money?
Net Profit Margin
For every $100 in sales, South32 Limited keeps $5.32 as profit after all expenses.
Operating Margin
Core operations generate -3.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.30 in profit for every $100 of shareholder equity.
ROA
South32 Limited generates $2.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
South32 Limited generates strong operating cash flow of $1.48B, reflecting robust business health.
Free Cash Flow
South32 Limited produces free cash flow of $399.84M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
SHTLF converts 2.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How SHTLF Stacks Against Its Sector Peers
| Metric | SHTLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.45 | 27.01 | Worse (Expensive) |
| ROE | 3.30% | 949.00% | Weak |
| Net Margin | 5.32% | -16159.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 2.71 | 4.42 | Strong Liquidity |
| ROA | 2.17% | -6411.00% (disorted) | Weak |
SHTLF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews South32 Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.14%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
455.45%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
6.09%
Industry Style: Cyclical, Commodity, Value
Growing