WAM Capital Limited
WAM Capital Limited Fundamental Analysis
WAM Capital Limited (WAM.AX) shows moderate financial fundamentals with a PE ratio of 19.87, profit margin of 70.95%, and ROE of 5.08%. The company generates $0.1B in annual revenue with weak year-over-year growth of -5.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WAM.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakWAM.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWAM.AX trades at attractive valuation levels.
Growth Score
WeakWAM.AX faces weak or negative growth trends.
Financial Health Score
ModerateWAM.AX shows balanced financial health with some risks.
Profitability Score
ModerateWAM.AX maintains healthy but balanced margins.
Key Financial Metrics
Is WAM.AX Expensive or Cheap?
P/E Ratio
WAM.AX trades at 19.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WAM.AX's PEG of -0.35 indicates potential undervaluation.
Price to Book
The market values WAM Capital Limited at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 68.70 times EBITDA. This signals the market has high growth expectations.
How Well Does WAM.AX Make Money?
Net Profit Margin
For every $100 in sales, WAM Capital Limited keeps $70.95 as profit after all expenses.
Operating Margin
Core operations generate 79.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.08 in profit for every $100 of shareholder equity.
ROA
WAM Capital Limited generates $5.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WAM Capital Limited generates strong operating cash flow of $109.50M, reflecting robust business health.
Free Cash Flow
WAM Capital Limited generates strong free cash flow of $109.50M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.10 in free cash annually.
FCF Yield
WAM.AX converts 5.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How WAM.AX Stacks Against Its Sector Peers
| Metric | WAM.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.87 | 18.89 | Neutral |
| ROE | 5.08% | 818.00% | Weak |
| Net Margin | 70.95% | 2473.00% | Weak |
| Debt/Equity | 0.00 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 692.63 | Weak Liquidity |
| ROA | 5.04% | -24053.00% (disorted) | Weak |
WAM.AX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WAM Capital Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
469.84%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
631.73%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
Declining