West African Resources Limited
West African Resources Limited Fundamental Analysis
West African Resources Limited (WFRSF) shows strong financial fundamentals with a PE ratio of 6.36, profit margin of 31.47%, and ROE of 37.16%. The company generates $1.7B in annual revenue with weak year-over-year growth of 1.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WFRSF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWFRSF demonstrates superior asset utilization.
Valuation Score
ExcellentWFRSF trades at attractive valuation levels.
Growth Score
WeakWFRSF faces weak or negative growth trends.
Financial Health Score
ExcellentWFRSF maintains a strong and stable balance sheet.
Profitability Score
ExcellentWFRSF achieves industry-leading margins.
Key Financial Metrics
Is WFRSF Expensive or Cheap?
P/E Ratio
WFRSF trades at 6.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WFRSF's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values West African Resources Limited at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.52 times EBITDA. This is generally considered low.
How Well Does WFRSF Make Money?
Net Profit Margin
For every $100 in sales, West African Resources Limited keeps $31.47 as profit after all expenses.
Operating Margin
Core operations generate 52.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $37.16 in profit for every $100 of shareholder equity.
ROA
West African Resources Limited generates $20.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
West African Resources Limited generates strong operating cash flow of $825.54M, reflecting robust business health.
Free Cash Flow
West African Resources Limited generates strong free cash flow of $240.19M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.21 in free cash annually.
FCF Yield
WFRSF converts 6.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.004
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.41
vs 25 benchmark
How WFRSF Stacks Against Its Sector Peers
| Metric | WFRSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.36 | 24.55 | Better (Cheaper) |
| ROE | 37.16% | 888.00% | Weak |
| Net Margin | 31.47% | -110845.00% (disorted) | Strong |
| Debt/Equity | 0.26 | 0.54 | Strong (Low Leverage) |
| Current Ratio | 2.02 | 6.19 | Strong Liquidity |
| ROA | 20.06% | -7037.00% (disorted) | Strong |
WFRSF outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews West African Resources Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
278.77%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
306.39%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
280.25%
Industry Style: Cyclical, Commodity, Value
High Growth