BOE Varitronix Limited
BOE Varitronix Limited Fundamental Analysis
BOE Varitronix Limited (VARXF) shows moderate financial fundamentals with a PE ratio of 10.30, profit margin of 2.86%, and ROE of 8.69%. The company generates $14.0B in annual revenue with strong year-over-year growth of 24.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.8/100 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 VARXF's fundamental strength across five key dimensions:
Efficiency Score
WeakVARXF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVARXF trades at attractive valuation levels.
Growth Score
ModerateVARXF shows steady but slowing expansion.
Financial Health Score
ExcellentVARXF maintains a strong and stable balance sheet.
Profitability Score
WeakVARXF struggles to sustain strong margins.
Key Financial Metrics
Is VARXF Expensive or Cheap?
P/E Ratio
VARXF trades at 10.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VARXF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values BOE Varitronix Limited at 0.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.97 times EBITDA. This is generally considered low.
How Well Does VARXF Make Money?
Net Profit Margin
For every $100 in sales, BOE Varitronix Limited keeps $2.86 as profit after all expenses.
Operating Margin
Core operations generate 3.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.69 in profit for every $100 of shareholder equity.
ROA
BOE Varitronix Limited generates $3.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BOE Varitronix Limited generates limited operating cash flow of $1.20B, signaling weaker underlying cash strength.
Free Cash Flow
BOE Varitronix Limited produces free cash flow of $980.20M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.24 in free cash annually.
FCF Yield
VARXF converts 23.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How VARXF Stacks Against Its Sector Peers
| Metric | VARXF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.30 | 35.62 | Better (Cheaper) |
| ROE | 8.69% | 1161.00% | Weak |
| Net Margin | 2.86% | -126170.00% (disorted) | Weak |
| Debt/Equity | 0.10 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 1.42 | 5.83 | Neutral |
| ROA | 3.38% | -308589.00% (disorted) | Weak |
VARXF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BOE Varitronix Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
250.81%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1357.98%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
359.85%
Industry Style: Growth, Innovation, High Beta
High Growth