Washington H. Soul Pattinson and Company Limited
Washington H. Soul Pattinson and Company Limited Fundamental Analysis
Washington H. Soul Pattinson and Company Limited (WSOUF) shows moderate financial fundamentals with a PE ratio of 5.56, profit margin of 1.54%, and ROE of 24.26%. The company generates $1.5B in annual revenue with weak year-over-year growth of 1.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.0/100 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 WSOUF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWSOUF demonstrates superior asset utilization.
Valuation Score
ExcellentWSOUF trades at attractive valuation levels.
Growth Score
WeakWSOUF faces weak or negative growth trends.
Financial Health Score
ExcellentWSOUF maintains a strong and stable balance sheet.
Profitability Score
WeakWSOUF struggles to sustain strong margins.
Key Financial Metrics
Is WSOUF Expensive or Cheap?
P/E Ratio
WSOUF trades at 5.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WSOUF's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Washington H. Soul Pattinson and Company Limited at 1.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 33.94 times EBITDA. This signals the market has high growth expectations.
How Well Does WSOUF Make Money?
Net Profit Margin
For every $100 in sales, Washington H. Soul Pattinson and Company Limited keeps $1.54 as profit after all expenses.
Operating Margin
Core operations generate 20.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.26 in profit for every $100 of shareholder equity.
ROA
Washington H. Soul Pattinson and Company Limited generates $16.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Washington H. Soul Pattinson and Company Limited generates limited operating cash flow of $-306.75M, signaling weaker underlying cash strength.
Free Cash Flow
Washington H. Soul Pattinson and Company Limited generates weak or negative free cash flow of $-443.85M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.36 in free cash annually.
FCF Yield
WSOUF converts -3.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How WSOUF Stacks Against Its Sector Peers
| Metric | WSOUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.56 | 18.66 | Better (Cheaper) |
| ROE | 24.26% | 804.00% | Weak |
| Net Margin | 154.21% | 2258.00% | Weak |
| Debt/Equity | 0.10 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 4.83 | 662.03 | Strong Liquidity |
| ROA | 16.58% | -24049.00% (disorted) | Strong |
WSOUF outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Washington H. Soul Pattinson and Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-21.45%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-71.99%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-29.58%
Industry Style: Value, Dividend, Cyclical
Declining