Emkay Taps & Cutting Tools Analysis

dividend

Pros

• Dividends paid are well covered by earnings (2.2x coverage).

Cons

• Emkay Taps and Cutting Tools has only been paying a dividend for 2 years, and since then dividends per share have fallen.
• Emkay Taps and Cutting Tools has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• Emkay Taps and Cutting Tools's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Emkay Taps and Cutting Tools's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Emkay Taps and Cutting Tools is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Emkay Taps and Cutting Tools is profitable, therefore cash runway is not a concern.
• Emkay Taps and Cutting Tools is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (955.7%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 21x debt.
• Emkay Taps and Cutting Tools'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 (3.3% vs 1.6% today).
• Interest payments on debt are well covered by earnings (EBIT is 62.2x coverage).
• Emkay Taps and Cutting Tools's level of debt (1.6%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Emkay Taps and Cutting Tools board of directors is about average.
• Ajay's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Emkay Taps and Cutting Tools management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Ajay's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Emkay Taps and Cutting Tools is not covered by any analysts.
• Emkay Taps and Cutting Tools's last earnings update was 215 days ago.
• Emkay Taps and Cutting Tools has significant price volatility in the past 3 months.

past

Pros

Cons

• Emkay Taps and Cutting Tools's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Emkay Taps and Cutting Tools's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Emkay Taps and Cutting Tools used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
• Emkay Taps and Cutting Tools's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Emkay Taps and Cutting Tools has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Emkay Taps and Cutting Tools's 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.

value

Pros

• Emkay Taps and Cutting Tools's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Emkay Taps and Cutting Tools's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Emkay Taps and Cutting Tools is good value based on assets compared to the IN Machinery industry average.

Cons

• Emkay Taps and Cutting Tools is overvalued based on earnings compared to the IN Machinery industry average.
• Emkay Taps and Cutting Tools is overvalued based on earnings compared to the India market.
• EMKAYTOOLS underperformed the Machinery industry which returned -23.7% over the past year.
• EMKAYTOOLS underperformed the Market in India which returned -14.5% over the past year.
• NSEI:EMKAYTOOLS is up 1.2% underperforming the Machinery industry which returned 8.3% over the past month.
• NSEI:EMKAYTOOLS is up 1.2% underperforming the market in India which returned 8% over the past month.