Igarashi Motors India Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (7.9x coverage).

Cons

• Igarashi Motors India has only been paying a dividend for 6 years, and since then dividends per share have fallen.
• Igarashi Motors India has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• Igarashi Motors India's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Igarashi Motors India's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Igarashi Motors India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Igarashi Motors India is profitable, therefore cash runway is not a concern.
• Igarashi Motors India is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (79.9%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.2x debt.
• Igarashi Motors India's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
• Igarashi Motors India's level of debt (26.8%) compared to net worth is satisfactory (less than 40%).

Cons

• The level of debt compared to net worth has increased over the past 5 years (21.9% vs 26.8% today).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Igarashi Motors India board of directors is about average.

Cons

• R.'s remuneration is higher than average for companies of similar size in India.
• R.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
• The average tenure for the Igarashi Motors India management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Igarashi Motors India is not covered by any analysts.
• Igarashi Motors India has significant price volatility in the past 3 months.

past

Pros

• Igarashi Motors India used its assets more efficiently than the IN Auto Components industry average last year based on Return on Assets.

Cons

• Igarashi Motors India's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Igarashi Motors India's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Igarashi Motors India's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Igarashi Motors India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Igarashi Motors India's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

value

Pros

• IGARASHI outperformed the Auto Components industry which returned -22.4% over the past year.
• IGARASHI outperformed the Market in India which returned -14.5% over the past year.

Cons

• Igarashi Motors India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Igarashi Motors India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Igarashi Motors India is overvalued based on assets compared to the IN Auto Components industry average.
• Igarashi Motors India is overvalued based on earnings compared to the IN Auto Components industry average.
• Igarashi Motors India is overvalued based on earnings compared to the India market.
• NSEI:IGARASHI is up 4.5% underperforming the Auto Components industry which returned 13.2% over the past month.
• NSEI:IGARASHI is up 4.5% underperforming the market in India which returned 8% over the past month.