Hathway Cable & Datacom Analysis

dividend

Pros

Cons

• Unable to evaluate Hathway Cable and Datacom's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Hathway Cable and Datacom's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Hathway Cable and Datacom is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Hathway Cable and Datacom is profitable, therefore cash runway is not a concern.
• Hathway Cable and Datacom is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (22.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.8x debt.
• Hathway Cable and Datacom'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 (82.8% vs 52.2% today).

Cons

• Interest payments on debt are not well covered by earnings (EBIT is 0.3x annual interest expense, ideally 3x coverage).
• Hathway Cable and Datacom's level of debt (52.2%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Hathway Cable and Datacom board of directors is about average.
• Rajan's remuneration is about average for companies of similar size in India.
• Rajan's compensation has increased in line with Hathway Cable and Datacom recently becoming profitable.

Cons

misc

Pros

Cons

• Hathway Cable and Datacom is not covered by any analysts.
• Hathway Cable and Datacom has significant price volatility in the past 3 months.

past

Pros

• Hathway Cable and Datacom has delivered over 20% year on year earnings growth in the past 5 years.
• Hathway Cable and Datacom has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).

Cons

• Hathway Cable and Datacom has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• Hathway Cable and Datacom used its assets less efficiently than the IN Media industry average last year based on Return on Assets.
• Hathway Cable and Datacom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Hathway Cable and Datacom has become profitable in the last year making it difficult to compare the IN Media industry average.

value

Pros

• HATHWAY outperformed the Media industry which returned -34.8% over the past year.
• HATHWAY outperformed the Market in India which returned -14.5% over the past year.
• NSEI:HATHWAY is up 36.2% outperforming the Media industry which returned 10.1% over the past month.
• NSEI:HATHWAY is up 36.2% outperforming the market in India which returned 8% over the past month.

Cons

• Hathway Cable and Datacom's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Hathway Cable and Datacom's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Hathway Cable and Datacom is overvalued based on assets compared to the IN Media industry average.
• Hathway Cable and Datacom is overvalued based on earnings compared to the IN Media industry average.
• Hathway Cable and Datacom is overvalued based on earnings compared to the India market.