Select Harvests Limited
Select Harvests Limited Fundamental Analysis
Select Harvests Limited (SHV.AX) shows moderate financial fundamentals with a PE ratio of 17.45, profit margin of 8.00%, and ROE of 6.14%. The company generates $0.4B in annual revenue with strong year-over-year growth of 63.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.7/100 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 SHV.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakSHV.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSHV.AX trades at attractive valuation levels.
Growth Score
ModerateSHV.AX shows steady but slowing expansion.
Financial Health Score
ExcellentSHV.AX maintains a strong and stable balance sheet.
Profitability Score
WeakSHV.AX struggles to sustain strong margins.
Key Financial Metrics
Is SHV.AX Expensive or Cheap?
P/E Ratio
SHV.AX trades at 17.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SHV.AX's PEG of -4.01 indicates potential undervaluation.
Price to Book
The market values Select Harvests Limited at 1.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.41 times EBITDA. This is generally considered low.
How Well Does SHV.AX Make Money?
Net Profit Margin
For every $100 in sales, Select Harvests Limited keeps $8.00 as profit after all expenses.
Operating Margin
Core operations generate -2.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.14 in profit for every $100 of shareholder equity.
ROA
Select Harvests Limited generates $3.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Select Harvests Limited generates strong operating cash flow of $118.64M, reflecting robust business health.
Free Cash Flow
Select Harvests Limited generates strong free cash flow of $94.73M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.67 in free cash annually.
FCF Yield
SHV.AX converts 17.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How SHV.AX Stacks Against Its Sector Peers
| Metric | SHV.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.45 | 22.37 | Better (Cheaper) |
| ROE | 6.14% | 1250.00% | Weak |
| Net Margin | 8.00% | -5464.00% (disorted) | Weak |
| Debt/Equity | 0.57 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 1.84 | 2.47 | Neutral |
| ROA | 3.40% | -192045.00% (disorted) | Weak |
SHV.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 Select Harvests Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-8.99%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
-97.72%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-78.59%
Industry Style: Defensive, Dividend, Low Volatility
Declining