Austin Engineering Company Analysis

dividend

Pros

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

Cons

• Dividends per share have fallen over the past 10 years.
• The company is paying a dividend however it is incurring a loss.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Austin Engineering's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Austin Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Austin Engineering has been profitable on average in the past, therefore cash runway is not a concern.
• Austin Engineering has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 7.9x debt.
• Austin Engineering's cash and other short term assets cover its long term commitments.
• Austin Engineering's level of debt (17.9%) compared to net worth is satisfactory (less than 40%).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• The level of debt compared to net worth has increased over the past 5 years (15.1% vs 17.9% today).
• Austin Engineering is making a loss, therefore interest payments are not well covered by earnings.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Austin Engineering board of directors is about average.
• Rajan's remuneration is lower than average for companies of similar size in India.

Cons

• Rajan's compensation has increased whilst company is loss making.
• The average tenure for the Austin Engineering management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Austin Engineering is not covered by any analysts.

past

Pros

Cons

• Unable to compare Austin Engineering's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Austin Engineering does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• Austin Engineering used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
• It is difficult to establish if Austin Engineering improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Austin Engineering has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Austin Engineering's 1-year growth to the IN Machinery industry average as it is not currently profitable.

value

Pros

• Austin Engineering is good value based on assets compared to the IN Machinery industry average.

Cons

• Austin Engineering's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Austin Engineering's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Austin Engineering is loss making, we can't compare its value to the IN Machinery industry average.
• Austin Engineering is loss making, we can't compare the value of its earnings to the India market.
• 522005 underperformed the Machinery industry which returned -23.7% over the past year.
• 522005 underperformed the Market in India which returned -14.5% over the past year.
• BSE:522005 is down -2.1% underperforming the Machinery industry which returned 8.3% over the past month.
• BSE:522005 is down -2.1% underperforming the market in India which returned 8% over the past month.