Crompton Greaves Consumer Electricals Analysis

dividend

Pros

• Dividends after 3 years are expected to be well covered by earnings (3x coverage).

Cons

• Unable to calculate sustainability of dividends as Crompton Greaves Consumer Electricals has not reported any payouts.
• Unable to evaluate Crompton Greaves Consumer Electricals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Crompton Greaves Consumer Electricals's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• Crompton Greaves Consumer Electricals 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 Consumer Durables industry average.

Cons

• Cash flow for Crompton Greaves Consumer Electricals is expected to increase but not above the 50% threshold in 2 years time.
• Crompton Greaves Consumer Electricals's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
• Crompton Greaves Consumer Electricals's earnings growth is positive but not above the India market average.
• Crompton Greaves Consumer Electricals's earnings growth is positive but not above the low risk savings rate of 7.2%.
• Crompton Greaves Consumer Electricals's earnings are expected to decrease over the next year.
• Crompton Greaves Consumer Electricals's net income is expected to decrease over the next 2 years.
• A decline in Crompton Greaves Consumer Electricals's performance (ROE) is expected over the next 3 years.
• Crompton Greaves Consumer Electricals's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Crompton Greaves Consumer Electricals's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
• Crompton Greaves Consumer Electricals's revenue growth is positive but not above the India market average.

health

Pros

• Crompton Greaves Consumer Electricals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Crompton Greaves Consumer Electricals is profitable, therefore cash runway is not a concern.
• Crompton Greaves Consumer Electricals is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (103.5%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 4.4x debt.
• Crompton Greaves Consumer Electricals's cash and other short term assets cover its long term commitments.
• Crompton Greaves Consumer Electricals had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
• Interest payments on debt are well covered by earnings (EBIT is 14.1x coverage).
• Crompton Greaves Consumer Electricals's level of debt (27%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

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

Cons

past

Pros

• Crompton Greaves Consumer Electricals has delivered over 20% year on year earnings growth in the past 5 years.
• Crompton Greaves Consumer Electricals used its assets more efficiently than the IN Consumer Durables industry average last year based on Return on Assets.
• Crompton Greaves Consumer Electricals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Crompton Greaves Consumer Electricals's earnings growth has exceeded the IN Consumer Durables industry average in the past year (23.6% vs 13.8%).

Cons

• Crompton Greaves Consumer Electricals's 1-year earnings growth is less than its 5-year average (23.6% vs 28.7%)
• Crompton Greaves Consumer Electricals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

value

Pros

• CROMPTON outperformed the Market in India which returned -14.8% over the past year.
• NSEI:CROMPTON is up 6.6% along with the Consumer Durables industry (7.4%) over the past month.

Cons

• Crompton Greaves Consumer Electricals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Crompton Greaves Consumer Electricals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Crompton Greaves Consumer Electricals is overvalued based on assets compared to the IN Consumer Durables industry average.
• Crompton Greaves Consumer Electricals is poor value based on expected growth next year.
• Crompton Greaves Consumer Electricals is overvalued based on earnings compared to the IN Consumer Durables industry average.
• Crompton Greaves Consumer Electricals is overvalued based on earnings compared to the India market.
• CROMPTON underperformed the Consumer Durables industry which returned 4.4% over the past year.
• NSEI:CROMPTON is up 6.6% underperforming the market in India which returned 9% over the past month.