Ircon International Analysis

dividend

Pros

• Dividends paid are well covered by earnings (2.3x coverage).
• Ircon International's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Ircon International's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Ircon International only just started paying a dividend, it is too early to tell if payments are increasing.
• It is too early to tell whether Ircon International has stable dividend payments.

health

Pros

• Ircon International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Ircon International is profitable, therefore cash runway is not a concern.
• Ircon International is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3.3x debt.
• Ircon International's cash and other short term assets cover its long term commitments.
• Ircon International earns more interest than it pays, coverage of interest payments is not a concern.
• Low level of unsold assets.

Cons

• Debt is not well covered by operating cash flow (19.7%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (6.9% vs 50.2% today).
• Ircon International's level of debt (50.2%) compared to net worth is high (greater than 40%).

management

Pros

• Sunil's remuneration is lower than average for companies of similar size in India.
• The tenure for the Ircon International management team is about average.

Cons

• The average tenure for the Ircon International board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Ircon International is not covered by any analysts.
• Ircon International has significant price volatility in the past 3 months.

past

Pros

• Ircon International has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Ircon International's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Ircon International's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Ircon International used its assets less efficiently than the IN Construction industry average last year based on Return on Assets.
• Ircon International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Ircon International's 1-year earnings growth is negative, it can't be compared to the IN Construction industry average.

value

Pros

• Ircon International is good value based on earnings compared to the India market.
• IRCON outperformed the Construction industry which returned -40% over the past year.
• IRCON outperformed the Market in India which returned -14.5% over the past year.

Cons

• Ircon International's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Ircon International's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Ircon International is overvalued based on assets compared to the IN Construction industry average.
• Ircon International is overvalued based on earnings compared to the IN Construction industry average.
• NSEI:IRCON is down -1.4% underperforming the Construction industry which returned 7.1% over the past month.
• NSEI:IRCON is down -1.4% underperforming the market in India which returned 8% over the past month.