Verbrec Limited
Verbrec Limited Fundamental Analysis
Verbrec Limited (VBC.AX) shows moderate financial fundamentals with a PE ratio of 11.51, profit margin of 5.70%, and ROE of 17.89%. The company generates $0.1B in annual revenue with weak year-over-year growth of -8.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VBC.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakVBC.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVBC.AX trades at attractive valuation levels.
Growth Score
ModerateVBC.AX shows steady but slowing expansion.
Financial Health Score
ExcellentVBC.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateVBC.AX maintains healthy but balanced margins.
Key Financial Metrics
Is VBC.AX Expensive or Cheap?
P/E Ratio
VBC.AX trades at 11.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VBC.AX's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Verbrec Limited at 1.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.98 times EBITDA. This signals the market has high growth expectations.
How Well Does VBC.AX Make Money?
Net Profit Margin
For every $100 in sales, Verbrec Limited keeps $5.70 as profit after all expenses.
Operating Margin
Core operations generate 3.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.89 in profit for every $100 of shareholder equity.
ROA
Verbrec Limited generates $6.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Verbrec Limited produces operating cash flow of $9.42M, showing steady but balanced cash generation.
Free Cash Flow
Verbrec Limited produces free cash flow of $8.43M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
VBC.AX converts 13.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How VBC.AX Stacks Against Its Sector Peers
| Metric | VBC.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.51 | 25.96 | Better (Cheaper) |
| ROE | 17.89% | 1263.00% | Weak |
| Net Margin | 5.70% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.52 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 10.05 | Neutral |
| ROA | 6.78% | -1497918.00% (disorted) | Weak |
VBC.AX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Verbrec Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-51.47%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-11.41%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-59.47%
Industry Style: Cyclical, Value, Infrastructure
Declining