Apollo Micro Systems Analysis

dividend

Pros

• Apollo Micro Systems's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Apollo Micro Systems has only been paying a dividend for 2 years, and since then there has been no growth.
• Unable to calculate sustainability of dividends as Apollo Micro Systems has not reported any payouts.
• Whilst dividend payments have been stable, Apollo Micro Systems has been paying a dividend for less than 10 years.
• Apollo Micro Systems's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Apollo Micro Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Apollo Micro Systems is profitable, therefore cash runway is not a concern.
• Apollo Micro Systems is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 4x debt.
• Apollo Micro Systems'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 (159.4% vs 33.1% today).
• Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
• Apollo Micro Systems's level of debt (33.1%) compared to net worth is satisfactory (less than 40%).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• High level of physical assets or inventory.

management

Pros

Cons

• Karunakar's remuneration is higher than average for companies of similar size in India.
• Karunakar's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

Pros

Cons

• Apollo Micro Systems is not covered by any analysts.
• Apollo Micro Systems has significant price volatility in the past 3 months.

past

Pros

• Apollo Micro Systems's year on year earnings growth rate has been positive over the past 5 years.
• Apollo Micro Systems used its assets more efficiently than the IN Aerospace & Defense industry average last year based on Return on Assets.

Cons

• Apollo Micro Systems's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Apollo Micro Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Apollo Micro Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Apollo Micro Systems's 1-year earnings growth is negative, it can't be compared to the IN Aerospace & Defense industry average.

value

Pros

• Apollo Micro Systems is good value based on assets compared to the IN Aerospace & Defense industry average.
• Apollo Micro Systems is good value based on earnings compared to the IN Aerospace & Defense industry average.
• Apollo Micro Systems is good value based on earnings compared to the India market.
• 540879 outperformed the Aerospace & Defense industry which returned -18.7% over the past year.
• BSE:540879 is up 11.4% outperforming the market in India which returned 8% over the past month.

Cons

• Apollo Micro Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Apollo Micro Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• 540879 underperformed the Market in India which returned -14.5% over the past year.
• BSE:540879 is up 11.4% underperforming the Aerospace & Defense industry which returned 14.2% over the past month.