Transurban Group
Transurban Group Fundamental Analysis
Transurban Group (TCL.AX) shows weak financial fundamentals with a PE ratio of 90.26, profit margin of 11.96%, and ROE of 5.32%. The company generates $4.0B in annual revenue with weak year-over-year growth of -8.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TCL.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakTCL.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateTCL.AX shows balanced valuation metrics.
Growth Score
WeakTCL.AX faces weak or negative growth trends.
Financial Health Score
WeakTCL.AX carries high financial risk with limited liquidity.
Profitability Score
WeakTCL.AX struggles to sustain strong margins.
Key Financial Metrics
Is TCL.AX Expensive or Cheap?
P/E Ratio
TCL.AX trades at 90.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TCL.AX's PEG of 0.36 indicates potential undervaluation.
Price to Book
The market values Transurban Group at 4.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.06 times EBITDA. This signals the market has high growth expectations.
How Well Does TCL.AX Make Money?
Net Profit Margin
For every $100 in sales, Transurban Group keeps $11.96 as profit after all expenses.
Operating Margin
Core operations generate 30.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.32 in profit for every $100 of shareholder equity.
ROA
Transurban Group generates $1.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Transurban Group generates strong operating cash flow of $2.17B, reflecting robust business health.
Free Cash Flow
Transurban Group generates strong free cash flow of $2.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.65 in free cash annually.
FCF Yield
TCL.AX converts 4.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
90.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TCL.AX Stacks Against Its Sector Peers
| Metric | TCL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 90.26 | 25.96 | Worse (Expensive) |
| ROE | 5.32% | 1263.00% | Weak |
| Net Margin | 11.96% | -41827.00% (disorted) | Strong |
| Debt/Equity | 2.33 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.71 | 10.05 | Weak Liquidity |
| ROA | 1.38% | -1497918.00% (disorted) | Weak |
TCL.AX outperforms its industry in 1 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 Transurban Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.32%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
206.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
3.01%
Industry Style: Cyclical, Value, Infrastructure
Growing