WAM Leaders Limited Fundamental Analysis (ASX: WLE.AX)
WAM Leaders Limited (ASX: WLE.AX) shows moderate financial fundamentals with a PE ratio of 10.84, profit margin of 64.87%, and ROE of 8.92%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.9/100 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 WLE.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakWLE.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWLE.AX trades at attractive valuation levels.
Growth Score
ModerateWLE.AX shows steady but slowing expansion.
Financial Health Score
ModerateWLE.AX shows balanced financial health with some risks.
Profitability Score
ModerateWLE.AX maintains healthy but balanced margins.
Key Financial Metrics
Is WLE.AX Expensive or Cheap?
P/E Ratio
WLE.AX trades at 10.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WLE.AX's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values WAM Leaders Limited at 0.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.91 times EBITDA. This is generally considered low.
How Well Does WLE.AX Make Money?
Net Profit Margin
For every $100 in sales, WAM Leaders Limited keeps $64.87 as profit after all expenses.
Operating Margin
Core operations generate 87.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.92 in profit for every $100 of shareholder equity.
ROA
WAM Leaders Limited generates $8.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WAM Leaders Limited generates limited operating cash flow of $23.20M, signaling weaker underlying cash strength.
Free Cash Flow
WAM Leaders Limited produces free cash flow of $23.20M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
WLE.AX converts 0.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.24
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
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How WLE.AX Stacks Against Its Sector Peers
| Metric | WLE.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.84 | 20.34 | Better (Cheaper) |
| ROE | 8.92% | 640.00% | Weak |
| Net Margin | 64.87% | -531.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 826.48 | Weak Liquidity |
| ROA | 8.36% | 57.00% | Weak |
WLE.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WAM Leaders Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical