Temple & Webster Group Ltd
Temple & Webster Group Ltd Fundamental Analysis
Temple & Webster Group Ltd (TPW.AX) shows weak financial fundamentals with a PE ratio of 101.56, profit margin of 1.22%, and ROE of 5.66%. The company generates $0.7B in annual revenue with strong year-over-year growth of 20.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TPW.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakTPW.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateTPW.AX shows balanced valuation metrics.
Growth Score
ModerateTPW.AX shows steady but slowing expansion.
Financial Health Score
ExcellentTPW.AX maintains a strong and stable balance sheet.
Profitability Score
WeakTPW.AX struggles to sustain strong margins.
Key Financial Metrics
Is TPW.AX Expensive or Cheap?
P/E Ratio
TPW.AX trades at 101.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TPW.AX's PEG of -3.90 indicates potential undervaluation.
Price to Book
The market values Temple & Webster Group Ltd at 5.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 65.42 times EBITDA. This signals the market has high growth expectations.
How Well Does TPW.AX Make Money?
Net Profit Margin
For every $100 in sales, Temple & Webster Group Ltd keeps $1.22 as profit after all expenses.
Operating Margin
Core operations generate 3.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.66 in profit for every $100 of shareholder equity.
ROA
Temple & Webster Group Ltd generates $2.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Temple & Webster Group Ltd generates limited operating cash flow of $42.38M, signaling weaker underlying cash strength.
Free Cash Flow
Temple & Webster Group Ltd produces free cash flow of $39.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
TPW.AX converts 4.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
101.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How TPW.AX Stacks Against Its Sector Peers
| Metric | TPW.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 101.56 | 23.80 | Worse (Expensive) |
| ROE | 5.66% | 1105.00% | Weak |
| Net Margin | 1.22% | -512.00% (disorted) | Weak |
| Debt/Equity | 0.46 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 2.64 | Neutral |
| ROA | 2.79% | -8048.00% (disorted) | Weak |
TPW.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 Temple & Webster Group Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
207.83%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-26.57%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
62.80%
Industry Style: Cyclical, Growth, Discretionary
High Growth