ISGEC Heavy Engineering Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (11.9x coverage).
• Isgec Heavy Engineering's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Isgec Heavy Engineering's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Isgec Heavy Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Isgec Heavy Engineering is profitable, therefore cash runway is not a concern.
• Isgec Heavy Engineering is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 9.1x debt.
• Isgec Heavy Engineering'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 (60.8% vs 28.8% today).
• Interest payments on debt are well covered by earnings (EBIT is 13.2x coverage).
• Isgec Heavy Engineering's level of debt (28.8%) compared to net worth is satisfactory (less than 40%).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Isgec Heavy Engineering board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• The average tenure for the Isgec Heavy Engineering management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

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

misc

Pros

Cons

• Isgec Heavy Engineering is not covered by any analysts.

past

Pros

• Isgec Heavy Engineering's 1-year earnings growth exceeds its 5-year average (19.8% vs -1.9%)
• Isgec Heavy Engineering's earnings growth has exceeded the IN Machinery industry average in the past year (19.8% vs -7.2%).

Cons

• Isgec Heavy Engineering's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Isgec Heavy Engineering used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
• Isgec Heavy Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Isgec Heavy Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Isgec Heavy Engineering is good value based on earnings compared to the IN Machinery industry average.
• Isgec Heavy Engineering is good value based on earnings compared to the India market.

Cons

• Isgec Heavy Engineering's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Isgec Heavy Engineering's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Isgec Heavy Engineering is overvalued based on assets compared to the IN Machinery industry average.
• 533033 underperformed the Machinery industry which returned -23.7% over the past year.
• 533033 underperformed the Market in India which returned -14.5% over the past year.
• BSE:533033 is up 3.4% underperforming the Machinery industry which returned 8.3% over the past month.
• BSE:533033 is up 3.4% underperforming the market in India which returned 8% over the past month.