Smartgroup Corporation Ltd
Smartgroup Corporation Ltd Fundamental Analysis
Smartgroup Corporation Ltd (STGXF) shows strong financial fundamentals with a PE ratio of 16.03, profit margin of 20.98%, and ROE of 25.70%. The company generates $0.3B in annual revenue with strong year-over-year growth of 21.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze STGXF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSTGXF demonstrates superior asset utilization.
Valuation Score
ExcellentSTGXF trades at attractive valuation levels.
Growth Score
ExcellentSTGXF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSTGXF maintains a strong and stable balance sheet.
Profitability Score
ExcellentSTGXF achieves industry-leading margins.
Key Financial Metrics
Is STGXF Expensive or Cheap?
P/E Ratio
STGXF trades at 16.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STGXF's PEG of -0.75 indicates potential undervaluation.
Price to Book
The market values Smartgroup Corporation Ltd at 4.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.71 times EBITDA. This signals the market has high growth expectations.
How Well Does STGXF Make Money?
Net Profit Margin
For every $100 in sales, Smartgroup Corporation Ltd keeps $20.98 as profit after all expenses.
Operating Margin
Core operations generate 35.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.70 in profit for every $100 of shareholder equity.
ROA
Smartgroup Corporation Ltd generates $10.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Smartgroup Corporation Ltd generates strong operating cash flow of $131.22M, reflecting robust business health.
Free Cash Flow
Smartgroup Corporation Ltd generates strong free cash flow of $70.39M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
STGXF converts 6.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How STGXF Stacks Against Its Sector Peers
| Metric | STGXF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.03 | 26.89 | Better (Cheaper) |
| ROE | 25.70% | 1304.00% | Weak |
| Net Margin | 20.98% | -29196.00% (disorted) | Strong |
| Debt/Equity | 0.42 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.62 | 10.90 | Neutral |
| ROA | 10.37% | -1543746.00% (disorted) | Strong |
STGXF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Smartgroup Corporation Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
22.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-25.21%
Industry Style: Cyclical, Value, Infrastructure
Declining