Edelweiss Financial Services Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (16.2x coverage).
• Dividends after 3 years are expected to be thoroughly covered by earnings (8x coverage).
• Edelweiss Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Edelweiss Financial Services's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

Pros

• Edelweiss Financial Services's earnings are expected to grow significantly at over 20% yearly.
• Edelweiss Financial Services's earnings growth is expected to exceed the India market average.
• Edelweiss Financial Services's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Edelweiss Financial Services's earnings are expected to exceed the low risk growth rate next year.
• Edelweiss Financial Services's net income is expected to increase by more than 50% in 2 years time.
• Performance (ROE) is expected to be above the current IN Capital Markets industry average.
• An improvement in Edelweiss Financial Services's performance (ROE) is expected over the next 3 years.
• Edelweiss Financial Services's revenue growth is expected to exceed the India market average.

Cons

• Edelweiss Financial Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Edelweiss Financial Services's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Edelweiss Financial Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Edelweiss Financial Services is profitable, therefore cash runway is not a concern.
• Edelweiss Financial Services is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (33.5%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.1x debt.
• Low level of unsold assets.

Cons

• Edelweiss Financial Services's long term commitments exceed its cash and other short term assets.
• The level of debt compared to net worth has increased over the past 5 years (436.8% vs 478.3% today).
• Edelweiss Financial Services's level of debt (478.3%) compared to net worth is high (greater than 40%).

management

Pros

• The tenure for the Edelweiss Financial Services board of directors is about average.
• Rashesh's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Rashesh's remuneration is higher than average for companies of similar size in India.
• Edelweiss Financial Services individual insiders have sold more shares than they have bought in the past 3 months.

misc

Pros

Cons

• Edelweiss Financial Services has significant price volatility in the past 3 months.

past

Pros

• Edelweiss Financial Services's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cons

• Edelweiss Financial Services's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Edelweiss Financial Services used its assets less efficiently than the IN Capital Markets industry average last year based on Return on Assets.
• Edelweiss Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Edelweiss Financial Services's 1-year earnings growth is negative, it can't be compared to the IN Capital Markets industry average.

value

Pros

• Edelweiss Financial Services is good value based on assets compared to the IN Capital Markets industry average.
• Edelweiss Financial Services is good value based on expected growth next year.
• Edelweiss Financial Services is good value based on earnings compared to the IN Capital Markets industry average.
• Edelweiss Financial Services is good value based on earnings compared to the India market.

Cons

• Edelweiss Financial Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Edelweiss Financial Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• 532922 underperformed the Capital Markets industry which returned -21% over the past year.
• 532922 underperformed the Market in India which returned -14.5% over the past year.
• BSE:532922 is down -2.7% underperforming the Capital Markets industry which returned 8.7% over the past month.
• BSE:532922 is down -2.7% underperforming the market in India which returned 8% over the past month.