Emerge Commerce Ltd. Fundamental Analysis
Emerge Commerce Ltd. (EMCMF) shows moderate financial fundamentals with a PE ratio of -58.20, profit margin of -0.86%, and ROE of 3.40%. The company generates $0.0B in annual revenue with strong year-over-year growth of 35.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.8/100 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 EMCMF's fundamental strength across five key dimensions:
Efficiency Score
WeakEMCMF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEMCMF trades at attractive valuation levels.
Growth Score
ExcellentEMCMF delivers strong and consistent growth momentum.
Financial Health Score
ModerateEMCMF shows balanced financial health with some risks.
Profitability Score
WeakEMCMF struggles to sustain strong margins.
Key Financial Metrics
Is EMCMF Expensive or Cheap?
P/E Ratio
EMCMF trades at -58.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EMCMF's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Emerge Commerce Ltd. at -2.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.51 times EBITDA. This is generally considered low.
How Well Does EMCMF Make Money?
Net Profit Margin
For every $100 in sales, Emerge Commerce Ltd. keeps $-0.86 as profit after all expenses.
Operating Margin
Core operations generate 1.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.40 in profit for every $100 of shareholder equity.
ROA
Emerge Commerce Ltd. generates $-1.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Emerge Commerce Ltd. generates limited operating cash flow of $2.42M, signaling weaker underlying cash strength.
Free Cash Flow
Emerge Commerce Ltd. produces free cash flow of $2.42M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
EMCMF converts 18.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-58.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How EMCMF Stacks Against Its Sector Peers
| Metric | EMCMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -58.20 | 23.90 | Better (Cheaper) |
| ROE | 3.40% | 1176.00% | Weak |
| Net Margin | -0.86% | 2549.00% | Weak |
| Debt/Equity | -1.31 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 0.79 | 2.83 | Weak Liquidity |
| ROA | -1.81% | -8407.00% (disorted) | Weak |
EMCMF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Emerge Commerce Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.29%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
98.52%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
484.93%
Industry Style: Cyclical, Growth, Discretionary
High Growth