Greenply Industries Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (20.1x coverage).
• Dividends after 3 years are expected to be well covered by earnings (6.4x coverage).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Greenply Industries's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Greenply Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Cash flow for Greenply Industries is expected to increase by more than 50% in 2 years time.
• Performance (ROE) is expected to be above the current IN Forestry industry average.

Cons

• Greenply Industries's earnings are expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
• Greenply Industries's earnings growth is positive but not above the India market average.
• Greenply Industries's earnings growth is positive but not above the low risk savings rate of 7.2%.
• Greenply Industries's earnings are expected to decrease over the next year.
• Greenply Industries's net income is expected to increase but not above the 50% threshold in 2 years time.
• Greenply Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• A decline in Greenply Industries's performance (ROE) is expected over the next 3 years.
• Greenply Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Greenply Industries's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
• Greenply Industries's revenue growth is positive but not above the India market average.

health

Pros

• Greenply Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Greenply Industries is profitable, therefore cash runway is not a concern.
• Greenply Industries is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 2.3x debt.
• Greenply Industries'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 (84.9% vs 67.2% today).
• Interest payments on debt are well covered by earnings (EBIT is 7.6x coverage).

Cons

• Debt is not well covered by operating cash flow (9.2%, less than 20% of total debt).
• Greenply Industries's level of debt (67.2%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Greenply Industries board of directors is about average.
• More shares have been bought than sold by Greenply Industries individual insiders in the past 3 months.

Cons

misc

Pros

Cons

• Greenply Industries has significant price volatility in the past 3 months.

past

Pros

• Greenply Industries's 1-year earnings growth exceeds its 5-year average (51.2% vs -7.3%)
• Greenply Industries used its assets more efficiently than the IN Forestry industry average last year based on Return on Assets.
• Greenply Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Greenply Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Greenply Industries's earnings growth has exceeded the IN Forestry industry average in the past year (51.2% vs 4.1%).

Cons

• Greenply Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

value

Pros

• Greenply Industries is good value based on earnings compared to the India market.
• GREENPLY matched the Forestry industry (-48.1%) over the past year.

Cons

• Greenply Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Greenply Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Greenply Industries is overvalued based on assets compared to the IN Forestry industry average.
• Greenply Industries is poor value based on expected growth next year.
• Greenply Industries is overvalued based on earnings compared to the IN Forestry industry average.
• GREENPLY underperformed the Market in India which returned -14.5% over the past year.
• NSEI:GREENPLY is down -10.7% underperforming the Forestry industry which returned 7.8% over the past month.
• NSEI:GREENPLY is down -10.7% underperforming the market in India which returned 8% over the past month.