Trent Limited
Trent Limited Fundamental Analysis
Trent Limited (TRENT.BO) shows moderate financial fundamentals with a PE ratio of 75.72, profit margin of 8.50%, and ROE of 29.95%. The company generates $192.6B in annual revenue with strong year-over-year growth of 38.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.7/100 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 TRENT.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTRENT.BO demonstrates superior asset utilization.
Valuation Score
WeakTRENT.BO trades at a premium to fair value.
Growth Score
ModerateTRENT.BO shows steady but slowing expansion.
Financial Health Score
ExcellentTRENT.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateTRENT.BO maintains healthy but balanced margins.
Key Financial Metrics
Is TRENT.BO Expensive or Cheap?
P/E Ratio
TRENT.BO trades at 75.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TRENT.BO's PEG of 80.35 indicates potential overvaluation.
Price to Book
The market values Trent Limited at 20.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 40.52 times EBITDA. This signals the market has high growth expectations.
How Well Does TRENT.BO Make Money?
Net Profit Margin
For every $100 in sales, Trent Limited keeps $8.50 as profit after all expenses.
Operating Margin
Core operations generate 17.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.95 in profit for every $100 of shareholder equity.
ROA
Trent Limited generates $15.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Trent Limited generates limited operating cash flow of $15.32B, signaling weaker underlying cash strength.
Free Cash Flow
Trent Limited generates weak or negative free cash flow of $4.86B, restricting financial flexibility.
FCF Per Share
Each share generates $13.67 in free cash annually.
FCF Yield
TRENT.BO converts 0.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
75.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
80.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.44
vs 25 benchmark
How TRENT.BO Stacks Against Its Sector Peers
| Metric | TRENT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 75.72 | 23.52 | Worse (Expensive) |
| ROE | 29.95% | 1156.00% | Weak |
| Net Margin | 8.50% | 670.00% | Weak |
| Debt/Equity | 0.38 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.24 | 2.56 | Neutral |
| ROA | 15.25% | -8289.00% (disorted) | Strong |
TRENT.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Trent Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
380.41%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1130.56%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
356.88%
Industry Style: Cyclical, Growth, Discretionary
High Growth