Aster DM Healthcare Analysis

dividend

Pros

Cons

• No need to calculate the sustainability of Aster DM Healthcare's dividends in 3 years as they are not expected to pay a notable one for India.
• Unable to evaluate Aster DM Healthcare's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Aster DM Healthcare's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• Cash flow for Aster DM Healthcare is expected to increase by more than 50% in 2 years time.
• Aster DM Healthcare's earnings are expected to grow significantly at over 20% yearly.
• Aster DM Healthcare's earnings growth is expected to exceed the India market average.
• Aster DM Healthcare's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Aster DM Healthcare's earnings are expected to exceed the low risk growth rate next year.
• Aster DM Healthcare's net income is expected to increase by more than 50% in 2 years time.
• An improvement in Aster DM Healthcare's performance (ROE) is expected over the next 3 years.
• Aster DM Healthcare's revenue growth is expected to exceed the India market average.

Cons

• Aster DM Healthcare is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Performance (ROE) is not expected to exceed the current IN Healthcare industry average.
• Aster DM Healthcare's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Aster DM Healthcare's revenue is expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Aster DM Healthcare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Aster DM Healthcare is profitable, therefore cash runway is not a concern.
• Aster DM Healthcare is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (23.4%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.5x debt.

Cons

• Aster DM Healthcare's long term commitments exceed its cash and other short term assets.
• The level of debt compared to net worth has increased over the past 5 years (51.3% vs 72.4% today).
• Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
• Aster DM Healthcare's level of debt (72.4%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Aster DM Healthcare board of directors is about average.
• Mandayapurath's remuneration is lower than average for companies of similar size in India.
• More shares have been bought than sold by Aster DM Healthcare individual insiders in the past 3 months.
• The average tenure for the Aster DM Healthcare management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• Aster DM Healthcare has significant price volatility in the past 3 months.

past

Pros

• Aster DM Healthcare has delivered over 20% year on year earnings growth in the past 5 years.
• Aster DM Healthcare has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Aster DM Healthcare's 1-year earnings growth is less than its 5-year average (13% vs 28.2%)
• Aster DM Healthcare used its assets less efficiently than the IN Healthcare industry average last year based on Return on Assets.
• Aster DM Healthcare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Aster DM Healthcare's earnings growth has not exceeded the IN Healthcare industry average in the past year (13% vs 14.4%).

value

Pros

• Aster DM Healthcare's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Aster DM Healthcare's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Aster DM Healthcare is good value based on expected growth next year.
• Aster DM Healthcare is good value based on earnings compared to the IN Healthcare industry average.
• ASTERDM matched the India Market (-14.5%) over the past year.
• NSEI:ASTERDM is up 24% outperforming the Healthcare industry which returned 5.4% over the past month.
• NSEI:ASTERDM is up 24% outperforming the market in India which returned 8% over the past month.

Cons

• Aster DM Healthcare is overvalued based on assets compared to the IN Healthcare industry average.
• Aster DM Healthcare is overvalued based on earnings compared to the India market.
• ASTERDM underperformed the Healthcare industry which returned 9.1% over the past year.