Coromandel International Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (3x coverage).
• Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
• Coromandel International's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Coromandel International's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Coromandel International's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Coromandel International's earnings are expected to exceed the low risk growth rate next year.
• Coromandel International is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Chemicals industry average.
• Coromandel International's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Coromandel International is expected to decrease over the next 2 years.
• Coromandel International's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
• Coromandel International's earnings growth is positive but not above the India market average.
• Coromandel International's net income is expected to increase but not above the 50% threshold in 2 years time.
• A decline in Coromandel International's performance (ROE) is expected over the next 3 years.
• Coromandel International's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Coromandel International's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Coromandel International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Coromandel International is profitable, therefore cash runway is not a concern.
• Coromandel International is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (114.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 4.8x debt.
• Coromandel International'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 (104.2% vs 37.6% today).
• Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
• Coromandel International's level of debt (37.6%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Coromandel International board of directors is about average.
• Sameer's remuneration is about average for companies of similar size in India.
• Sameer's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Coromandel International management team is about average.

Cons

• Coromandel International individual insiders have only sold shares in the past 3 months.

misc

Pros

Cons

• Coromandel International has significant price volatility in the past 3 months.

past

Pros

• Coromandel International's 1-year earnings growth exceeds its 5-year average (47.9% vs 21.1%)
• Coromandel International has delivered over 20% year on year earnings growth in the past 5 years.
• Coromandel International used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Coromandel International has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Coromandel International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Coromandel International's earnings growth has exceeded the IN Chemicals industry average in the past year (47.9% vs 9.1%).

Cons

value

Pros

• 506395 outperformed the Chemicals industry which returned 2.2% over the past year.
• 506395 outperformed the Market in India which returned -14.5% over the past year.
• BSE:506395 is up 8% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:506395 is up 8% along with the India market (8%) over the past month.

Cons

• Coromandel International's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Coromandel International's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Coromandel International is overvalued based on assets compared to the IN Chemicals industry average.
• Coromandel International is poor value based on expected growth next year.
• Coromandel International is overvalued based on earnings compared to the IN Chemicals industry average.
• Coromandel International is overvalued based on earnings compared to the India market.