Hindustan Oil Exploration Company Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Hindustan Oil Exploration has not reported any payouts.
• Unable to evaluate Hindustan Oil Exploration's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Hindustan Oil Exploration's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Hindustan Oil Exploration is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Hindustan Oil Exploration is profitable, therefore cash runway is not a concern.
• Hindustan Oil Exploration is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (704.5%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 6x debt.
• Hindustan Oil Exploration's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 86.4x coverage).
• Hindustan Oil Exploration's level of debt (6.6%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Hindustan Oil Exploration board of directors is about average.
• The average tenure for the Hindustan Oil Exploration management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Pandarinathan's remuneration is higher than average for companies of similar size in India.
• Pandarinathan's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

Pros

Cons

• Hindustan Oil Exploration is not covered by any analysts.
• Hindustan Oil Exploration has significant price volatility in the past 3 months.

past

Pros

• Hindustan Oil Exploration has delivered over 20% year on year earnings growth in the past 5 years.
• Hindustan Oil Exploration used its assets more efficiently than the IN Oil and Gas industry average last year based on Return on Assets.
• Hindustan Oil Exploration 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).
• Hindustan Oil Exploration has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).

Cons

• Hindustan Oil Exploration's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Hindustan Oil Exploration's 1-year earnings growth is negative, it can't be compared to the IN Oil and Gas industry average.

value

Pros

• Hindustan Oil Exploration's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Hindustan Oil Exploration's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Hindustan Oil Exploration is good value based on earnings compared to the India market.
• BSE:500186 is up 68.1% outperforming the Oil and Gas industry which returned 10.5% over the past month.
• BSE:500186 is up 68.1% outperforming the market in India which returned 8% over the past month.

Cons

• Hindustan Oil Exploration is overvalued based on assets compared to the IN Oil and Gas industry average.
• Hindustan Oil Exploration is overvalued based on earnings compared to the IN Oil and Gas industry average.
• 500186 underperformed the Oil and Gas industry which returned -4% over the past year.
• 500186 underperformed the Market in India which returned -14.5% over the past year.