Dynacons Systems & Solutions Analysis

dividend

Pros

• Dynacons Systems & Solutions's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Dynacons Systems & Solutions's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dynacons Systems & Solutions only just started paying a dividend, it is too early to tell if payments are increasing.
• It is too early to tell whether Dynacons Systems & Solutions has stable dividend payments.

health

Pros

• Dynacons Systems & Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Dynacons Systems & Solutions is profitable, therefore cash runway is not a concern.
• Dynacons Systems & Solutions is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3x debt.
• Dynacons Systems & Solutions's cash and other short term assets cover its long term commitments.
• Low level of unsold assets.

Cons

• Debt is not well covered by operating cash flow (8.6%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (80.5% vs 98.3% today).
• Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
• Dynacons Systems & Solutions's level of debt (98.3%) compared to net worth is high (greater than 40%).

management

Pros

• The average tenure for the Dynacons Systems & Solutions board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Shirish's remuneration is lower than average for companies of similar size in India.
• Shirish's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

• Dynacons Systems & Solutions is not covered by any analysts.
• Dynacons Systems & Solutions has significant price volatility in the past 3 months.

past

Pros

• Dynacons Systems & Solutions's 1-year earnings growth exceeds its 5-year average (56.6% vs 46.9%)
• Dynacons Systems & Solutions has delivered over 20% year on year earnings growth in the past 5 years.
• Dynacons Systems & Solutions used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
• Dynacons Systems & Solutions has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Dynacons Systems & Solutions's earnings growth has exceeded the IN IT industry average in the past year (56.6% vs 6%).

Cons

• Dynacons Systems & Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Dynacons Systems & Solutions is good value based on assets compared to the IN IT industry average.
• Dynacons Systems & Solutions is good value based on earnings compared to the IN IT industry average.
• Dynacons Systems & Solutions is good value based on earnings compared to the India market.
• NSEI:DSSL is up 19.5% outperforming the IT industry which returned 8.5% over the past month.
• NSEI:DSSL is up 19.5% outperforming the market in India which returned 8% over the past month.

Cons

• Dynacons Systems & Solutions's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Dynacons Systems & Solutions's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• DSSL underperformed the IT industry which returned -10.1% over the past year.
• DSSL underperformed the Market in India which returned -14.5% over the past year.