Southern Cross Electrical Engineering Limited
Southern Cross Electrical Engineering Limited Fundamental Analysis
Southern Cross Electrical Engineering Limited (SXE.AX) shows weak financial fundamentals with a PE ratio of 290.76, profit margin of 0.36%, and ROE of 1.41%. The company generates $0.8B in annual revenue with strong year-over-year growth of 45.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SXE.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakSXE.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateSXE.AX shows balanced valuation metrics.
Growth Score
ExcellentSXE.AX delivers strong and consistent growth momentum.
Financial Health Score
ModerateSXE.AX shows balanced financial health with some risks.
Profitability Score
ModerateSXE.AX maintains healthy but balanced margins.
Key Financial Metrics
Is SXE.AX Expensive or Cheap?
P/E Ratio
SXE.AX trades at 290.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SXE.AX's PEG of -3.18 indicates potential undervaluation.
Price to Book
The market values Southern Cross Electrical Engineering Limited at 4.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.81 times EBITDA. This signals the market has high growth expectations.
How Well Does SXE.AX Make Money?
Net Profit Margin
For every $100 in sales, Southern Cross Electrical Engineering Limited keeps $0.36 as profit after all expenses.
Operating Margin
Core operations generate 7.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.41 in profit for every $100 of shareholder equity.
ROA
Southern Cross Electrical Engineering Limited generates $0.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Southern Cross Electrical Engineering Limited generates limited operating cash flow of $8.69M, signaling weaker underlying cash strength.
Free Cash Flow
Southern Cross Electrical Engineering Limited generates weak or negative free cash flow of $4.58M, restricting financial flexibility.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
SXE.AX converts 0.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
290.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How SXE.AX Stacks Against Its Sector Peers
| Metric | SXE.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 290.76 | 25.96 | Worse (Expensive) |
| ROE | 1.41% | 1263.00% | Weak |
| Net Margin | 0.36% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.96 | 10.05 | Weak Liquidity |
| ROA | 0.72% | -1497918.00% (disorted) | Weak |
SXE.AX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Southern Cross Electrical Engineering Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.31%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
169.08%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
491.93%
Industry Style: Cyclical, Value, Infrastructure
High Growth