Avarga Limited
Avarga Limited Fundamental Analysis
Avarga Limited (U09.SI) shows weak financial fundamentals with a PE ratio of 22.50, profit margin of 0.05%, and ROE of 0.17%. The company generates $19.6B in annual revenue with weak year-over-year growth of -4.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze U09.SI's fundamental strength across five key dimensions:
Efficiency Score
WeakU09.SI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentU09.SI trades at attractive valuation levels.
Growth Score
ModerateU09.SI shows steady but slowing expansion.
Financial Health Score
ExcellentU09.SI maintains a strong and stable balance sheet.
Profitability Score
WeakU09.SI struggles to sustain strong margins.
Key Financial Metrics
Is U09.SI Expensive or Cheap?
P/E Ratio
U09.SI trades at 22.50 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, U09.SI's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Avarga Limited at 0.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.07 times EBITDA. This is generally considered low.
How Well Does U09.SI Make Money?
Net Profit Margin
For every $100 in sales, Avarga Limited keeps $0.05 as profit after all expenses.
Operating Margin
Core operations generate 3.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.17 in profit for every $100 of shareholder equity.
ROA
Avarga Limited generates $0.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Avarga Limited generates limited operating cash flow of $13.72M, signaling weaker underlying cash strength.
Free Cash Flow
Avarga Limited generates weak or negative free cash flow of $-51.04M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.06 in free cash annually.
FCF Yield
U09.SI converts -1.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.002
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How U09.SI Stacks Against Its Sector Peers
| Metric | U09.SI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.50 | 25.96 | Better (Cheaper) |
| ROE | 0.17% | 1263.00% | Weak |
| Net Margin | 0.05% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.51 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.42 | 10.05 | Strong Liquidity |
| ROA | 0.08% | -1497918.00% (disorted) | Weak |
U09.SI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Avarga Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.29%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-24.56%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-16.24%
Industry Style: Cyclical, Value, Infrastructure
Declining