Sovereign Metals Limited Fundamental Analysis (ASX: SVM.AX)
Sovereign Metals Limited Fundamental Analysis (ASX: SVM.AX)
Sovereign Metals Limited (ASX: SVM.AX) shows weak financial fundamentals with a PE ratio of -11.52, profit margin of 0.00%, and ROE of -75.32%. The company generates N/A in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -45.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SVM.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakSVM.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSVM.AX trades at attractive valuation levels.
Growth Score
WeakSVM.AX faces weak or negative growth trends.
Financial Health Score
ExcellentSVM.AX maintains a strong and stable balance sheet.
Profitability Score
WeakSVM.AX struggles to sustain strong margins.
Key Financial Metrics
Is SVM.AX Expensive or Cheap?
P/E Ratio
SVM.AX trades at -11.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SVM.AX's PEG of -0.23 indicates potential undervaluation.
Price to Book
The market values Sovereign Metals Limited at 10.07 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -12.15 times EBITDA. This is generally considered low.
How Well Does SVM.AX Make Money?
Net Profit Margin
For every $100 in sales, Sovereign Metals Limited keeps $0.00 as profit after all expenses.
Operating Margin
Core operations generate 0.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-75.32 in profit for every $100 of shareholder equity.
ROA
Sovereign Metals Limited generates $-78.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $-0.04 in free cash annually.
FCF Yield
SVM.AX converts -9.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-11.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.75
vs 25 benchmark
ROA
Return on assets percentage
-0.79
vs 25 benchmark
ROCE
Return on capital employed
-0.92
vs 25 benchmark
How SVM.AX Stacks Against Its Sector Peers
| Metric | SVM.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -11.52 | 25.61 | Better (Cheaper) |
| ROE | -75.32% | 1258.00% | Weak |
| Net Margin | 0.00% | 478.00% | Weak |
| Debt/Equity | 0.00 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 8.24 | 3.19 | Strong Liquidity |
| ROA | -78.93% | 2829.00% | Weak |
SVM.AX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sovereign Metals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-699.48%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-387.37%
Industry Style: Cyclical, Commodity, Value
Declining