Brady & Morris Engineering Company Analysis

dividend

Pros

Cons

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

health

Pros

• Brady & Morris Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Brady & Morris Engineering is profitable, therefore cash runway is not a concern.
• Brady & Morris Engineering is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (29.9%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.3x debt.
• Brady & Morris Engineering's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 9.6x coverage).

Cons

• The level of debt compared to net worth has increased over the past 5 years (229.2% vs 617.8% today).
• Brady & Morris Engineering's level of debt (617.8%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Brady & Morris Engineering board of directors is about average.
• Pavan's remuneration is lower than average for companies of similar size in India.
• Pavan's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

• Brady & Morris Engineering is not covered by any analysts.

past

Pros

• Brady & Morris Engineering's 1-year earnings growth exceeds its 5-year average (310.8% vs 52.1%)
• Brady & Morris Engineering has delivered over 20% year on year earnings growth in the past 5 years.
• Brady & Morris Engineering used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
• Brady & Morris Engineering has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Brady & Morris Engineering's earnings growth has exceeded the IN Machinery industry average in the past year (310.8% vs -7.2%).

Cons

• Whilst Brady & Morris Engineering made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.

value

Pros

• Brady & Morris Engineering's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Brady & Morris Engineering's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Brady & Morris Engineering is good value based on earnings compared to the IN Machinery industry average.
• Brady & Morris Engineering is good value based on earnings compared to the India market.
• 505690 outperformed the Machinery industry which returned -23.7% over the past year.
• 505690 outperformed the Market in India which returned -14.5% over the past year.
• BSE:505690 is up 24.7% outperforming the Machinery industry which returned 8.3% over the past month.
• BSE:505690 is up 24.7% outperforming the market in India which returned 8% over the past month.

Cons

• Brady & Morris Engineering is overvalued based on assets compared to the IN Machinery industry average.