Indian Railway Catering & Tourism Corporation Analysis

dividend

Pros

• Dividends paid are well covered by earnings (3.5x coverage).

Cons

• Indian Railway Catering & Tourism only just started paying a dividend, it is too early to tell if payments are increasing.
• It is too early to tell whether Indian Railway Catering & Tourism has stable dividend payments.
• Indian Railway Catering & Tourism's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Indian Railway Catering & Tourism's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Indian Railway Catering & Tourism is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Indian Railway Catering & Tourism is profitable, therefore cash runway is not a concern.
• Indian Railway Catering & Tourism is profitable, therefore cash runway is not a concern.
• Indian Railway Catering & Tourism has no debt, it does not need to be covered by operating cash flow.
• Indian Railway Catering & Tourism has no debt, it does not need to be covered by short term assets.
• Indian Railway Catering & Tourism's cash and other short term assets cover its long term commitments.
• Indian Railway Catering & Tourism has not taken on any debt in the past 5 years.
• Indian Railway Catering & Tourism has no debt, therefore coverage of interest payments is not a concern.
• Indian Railway Catering & Tourism has no debt.
• Low level of unsold assets.

Cons

management

Pros

• Mahendra's remuneration is lower than average for companies of similar size in India.
• Mahendra's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the Indian Railway Catering & Tourism board of directors is less than 3 years, this suggests a new board.
• The average tenure for the Indian Railway Catering & Tourism management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Indian Railway Catering & Tourism is not covered by any analysts.
• Indian Railway Catering & Tourism has significant price volatility in the past 3 months.

past

Pros

• Indian Railway Catering & Tourism's 1-year earnings growth exceeds its 5-year average (64% vs 16.5%)
• Indian Railway Catering & Tourism's year on year earnings growth rate has been positive over the past 5 years.
• Indian Railway Catering & Tourism used its assets more efficiently than the IN Commercial Services industry average last year based on Return on Assets.
• Indian Railway Catering & Tourism has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Indian Railway Catering & Tourism has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Indian Railway Catering & Tourism's earnings growth has exceeded the IN Commercial Services industry average in the past year (64% vs 35.9%).

Cons

value

Pros

• NSEI:IRCTC is up 6.1% along with the Commercial Services industry (5.9%) over the past month.

Cons

• Indian Railway Catering & Tourism's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Indian Railway Catering & Tourism's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Indian Railway Catering & Tourism is overvalued based on assets compared to the IN Commercial Services industry average.
• Indian Railway Catering & Tourism is overvalued based on earnings compared to the IN Commercial Services industry average.
• Indian Railway Catering & Tourism is overvalued based on earnings compared to the India market.
• NSEI:IRCTC is up 6.1% underperforming the market in India which returned 8% over the past month.