Globe Enterprises (India) Analysis

dividend

Pros

Cons

• Unable to evaluate Globe Textiles (India)'s dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Globe Textiles (India)'s dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Globe Textiles (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Globe Textiles (India) is profitable, therefore cash runway is not a concern.
• Globe Textiles (India) is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (21.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.3x debt.
• Globe Textiles (India)'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 (189.1% vs 124.6% today).

Cons

• Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
• Globe Textiles (India)'s level of debt (124.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Globe Textiles (India) board of directors is about average.
• Bhavin's remuneration is about average for companies of similar size in India.
• Bhavin's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Globe Textiles (India) management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• Globe Textiles (India) is not covered by any analysts.
• Globe Textiles (India)'s last earnings update was 215 days ago.
• NSEI:GLOBE has not traded for 81 days.

past

Pros

• Globe Textiles (India)'s 1-year earnings growth exceeds its 5-year average (37.3% vs 12.2%)
• Globe Textiles (India)'s year on year earnings growth rate has been positive over the past 5 years.
• Globe Textiles (India) used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
• Globe Textiles (India) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Globe Textiles (India)'s earnings growth has exceeded the IN Luxury industry average in the past year (37.3% vs 8.3%).

Cons

• Globe Textiles (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Globe Textiles (India)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
• Globe Textiles (India)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
• Globe Textiles (India) is good value based on earnings compared to the IN Luxury industry average.
• Globe Textiles (India) is good value based on earnings compared to the India market.
• GLOBE outperformed the Luxury industry which returned -22.1% over the past year.
• GLOBE outperformed the Market in India which returned -14.5% over the past year.

Cons

• Globe Textiles (India) is overvalued based on assets compared to the IN Luxury industry average.
• NSEI:GLOBE is flat (0%) underperforming the Luxury industry which returned 9.8% over the past month.
• NSEI:GLOBE is flat (0%) underperforming the market in India which returned 8% over the past month.