A2Z Infra Engineering Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as A2Z Infra Engineering has not reported any payouts.
• Unable to evaluate A2Z Infra Engineering's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate A2Z Infra Engineering's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• A2Z Infra Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• A2Z Infra Engineering is profitable, therefore cash runway is not a concern.
• A2Z Infra Engineering is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (25%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 6.2x debt.
• A2Z Infra Engineering's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (231.2% vs 35.4% today).
• A2Z Infra Engineering's level of debt (35.4%) compared to net worth is satisfactory (less than 40%).
• Low level of unsold assets.

Cons

• Interest payments on debt are not well covered by earnings (EBIT is 0.4x annual interest expense, ideally 3x coverage).

management

Pros

• The tenure for the A2Z Infra Engineering board of directors is about average.
• Rajesh's remuneration is lower than average for companies of similar size in India.
• Rajesh's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the A2Z Infra Engineering management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• A2Z Infra Engineering is not covered by any analysts.
• A2Z Infra Engineering has significant price volatility in the past 3 months.

past

Pros

• A2Z Infra Engineering's 1-year earnings growth exceeds its 5-year average (65.8% vs 54%)
• A2Z Infra Engineering has delivered over 20% year on year earnings growth in the past 5 years.
• A2Z Infra Engineering used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.
• A2Z Infra Engineering made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
• A2Z Infra Engineering's earnings growth has exceeded the IN Construction industry average in the past year (65.8% vs 2.3%).

Cons

• A2Z Infra Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

value

Pros

• A2Z Infra Engineering's share price is below the future cash flow value, and at a moderate discount (> 20%).
• A2Z Infra Engineering's share price is below the future cash flow value, and at a substantial discount (> 40%).
• A2Z Infra Engineering is good value based on assets compared to the IN Construction industry average.
• A2Z Infra Engineering is good value based on earnings compared to the IN Construction industry average.
• A2Z Infra Engineering is good value based on earnings compared to the India market.
• NSEI:A2ZINFRA is up 15.8% outperforming the Construction industry which returned 7.1% over the past month.
• NSEI:A2ZINFRA is up 15.8% outperforming the market in India which returned 8% over the past month.

Cons

• A2ZINFRA underperformed the Construction industry which returned -40% over the past year.
• A2ZINFRA underperformed the Market in India which returned -14.5% over the past year.