SRM Entertainment, Inc.
SRM Entertainment, Inc. Fundamental Analysis
SRM Entertainment, Inc. (SRM) shows weak financial fundamentals with a PE ratio of 151.86, profit margin of 57.49%, and ROE of 2.69%. The company generates $0.0B in annual revenue with weak year-over-year growth of -25.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SRM's fundamental strength across five key dimensions:
Efficiency Score
WeakSRM struggles to generate sufficient returns from assets.
Valuation Score
ModerateSRM shows balanced valuation metrics.
Growth Score
WeakSRM faces weak or negative growth trends.
Financial Health Score
ExcellentSRM maintains a strong and stable balance sheet.
Profitability Score
ModerateSRM maintains healthy but balanced margins.
Key Financial Metrics
Is SRM Expensive or Cheap?
P/E Ratio
SRM trades at 151.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SRM's PEG of -0.08 indicates potential undervaluation.
Price to Book
The market values SRM Entertainment, Inc. at 3.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -9554.95 times EBITDA. This is generally considered low.
How Well Does SRM Make Money?
Net Profit Margin
For every $100 in sales, SRM Entertainment, Inc. keeps $57.49 as profit after all expenses.
Operating Margin
Core operations generate -18.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.69 in profit for every $100 of shareholder equity.
ROA
SRM Entertainment, Inc. generates $2.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SRM Entertainment, Inc. generates limited operating cash flow of $-319.55K, signaling weaker underlying cash strength.
Free Cash Flow
SRM Entertainment, Inc. generates weak or negative free cash flow of $-319.55K, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
SRM converts -0.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
151.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1932.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
30.90
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 SRM Stacks Against Its Sector Peers
| Metric | SRM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 151.86 | 23.71 | Worse (Expensive) |
| ROE | 2.69% | 1187.00% | Weak |
| Net Margin | 5748.85% | 2531.00% | Excellent |
| Debt/Equity | 0.00 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 30.90 | 2.82 | Strong Liquidity |
| ROA | 2.16% | -8521.00% (disorted) | Weak |
SRM outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SRM Entertainment, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-91.10%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
65.53%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-22.33%
Industry Style: Cyclical, Growth, Discretionary
Declining