Varroc Engineering Limited
Varroc Engineering Limited Fundamental Analysis
Varroc Engineering Limited (VARROC.BO) shows weak financial fundamentals with a PE ratio of 48.05, profit margin of 2.04%, and ROE of 10.87%. The company generates $85.7B in annual revenue with moderate year-over-year growth of 7.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VARROC.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakVARROC.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateVARROC.BO shows balanced valuation metrics.
Growth Score
ModerateVARROC.BO shows steady but slowing expansion.
Financial Health Score
ModerateVARROC.BO shows balanced financial health with some risks.
Profitability Score
WeakVARROC.BO struggles to sustain strong margins.
Key Financial Metrics
Is VARROC.BO Expensive or Cheap?
P/E Ratio
VARROC.BO trades at 48.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VARROC.BO's PEG of 1.80 indicates fair valuation.
Price to Book
The market values Varroc Engineering Limited at 5.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.98 times EBITDA. This signals the market has high growth expectations.
How Well Does VARROC.BO Make Money?
Net Profit Margin
For every $100 in sales, Varroc Engineering Limited keeps $2.04 as profit after all expenses.
Operating Margin
Core operations generate 13.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.87 in profit for every $100 of shareholder equity.
ROA
Varroc Engineering Limited generates $3.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Varroc Engineering Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Varroc Engineering Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
VARROC.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.52
vs 25 benchmark
How VARROC.BO Stacks Against Its Sector Peers
| Metric | VARROC.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.05 | 24.97 | Worse (Expensive) |
| ROE | 10.87% | 1167.00% | Weak |
| Net Margin | 2.04% | 673.00% | Weak |
| Debt/Equity | 0.54 | 0.66 | Neutral |
| Current Ratio | 0.88 | 4.01 | Weak Liquidity |
| ROA | 3.69% | -8477.00% (disorted) | Weak |
VARROC.BO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Varroc Engineering Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-35.39%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
28149.00%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-54.08%
Industry Style: Cyclical, Growth, Discretionary
Declining