Energy Development Company Analysis

dividend

Pros

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

Cons

• Dividends per share have fallen over the past 10 years.
• The company is paying a dividend however it is incurring a loss.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• Energy Development is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Whilst loss making Energy Development has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -60.1% per year.
• Whilst loss making Energy Development has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Cons

• Debt is not well covered by operating cash flow (14.6%, less than 20% of total debt).
• Debt is not covered by short term assets, assets are 0.7x debt.
• Energy Development'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 (90.9% vs 186.7% today).
• Energy Development is making a loss, therefore interest payments are not well covered by earnings.
• Energy Development's level of debt (186.7%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Energy Development board of directors is about average.

Cons

misc

Pros

Cons

• Energy Development is not covered by any analysts.
• Energy Development's last earnings update was 215 days ago.
• Energy Development has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Energy Development's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Energy Development does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
• Energy Development used its assets less efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
• It is difficult to establish if Energy Development improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Energy Development has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Energy Development's 1-year growth to the IN Electric Utilities industry average as it is not currently profitable.

value

Pros

• Energy Development's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Energy Development's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Energy Development is good value based on assets compared to the IN Electric Utilities industry average.
• 532219 outperformed the Electric Utilities industry which returned -13.9% over the past year.
• 532219 outperformed the Market in India which returned -14.5% over the past year.
• BSE:532219 is up 46.2% outperforming the Electric Utilities industry which returned 5.5% over the past month.
• BSE:532219 is up 46.2% outperforming the market in India which returned 8% over the past month.

Cons

• Energy Development is loss making, we can't compare its value to the IN Electric Utilities industry average.
• Energy Development is loss making, we can't compare the value of its earnings to the India market.