Josts Engineering Company Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (25.9x coverage).

Cons

• Dividends per share have fallen over the past 10 years.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Jost's Engineering's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Jost's Engineering's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Jost's Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Jost's Engineering is profitable, therefore cash runway is not a concern.
• Jost's Engineering is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 2.6x debt.
• Jost's Engineering's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).

Cons

• Debt is not well covered by operating cash flow (17.9%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (16.4% vs 80.6% today).
• Jost's Engineering's level of debt (80.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Jost's Engineering board of directors is about average.
• Vishal's remuneration is about average for companies of similar size in India.
• Vishal's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Jost's Engineering management team is about average.

Cons

misc

Pros

Cons

• Jost's Engineering is not covered by any analysts.
• Jost's Engineering has significant price volatility in the past 3 months.

past

Pros

• Jost's Engineering's 1-year earnings growth exceeds its 5-year average (72.2% vs 46.9%)
• Jost's Engineering has delivered over 20% year on year earnings growth in the past 5 years.
• Jost's Engineering used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
• Jost's Engineering 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).
• Jost's Engineering's earnings growth has exceeded the IN Machinery industry average in the past year (72.2% vs -7.2%).

Cons

• Jost's Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Jost's Engineering is good value based on earnings compared to the IN Machinery industry average.
• Jost's Engineering is good value based on earnings compared to the India market.
• 505750 outperformed the Machinery industry which returned -23.7% over the past year.

Cons

• Jost's Engineering's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Jost's Engineering's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Jost's Engineering is overvalued based on assets compared to the IN Machinery industry average.
• 505750 underperformed the Market in India which returned -14.5% over the past year.
• BSE:505750 is down -4.7% underperforming the Machinery industry which returned 8.3% over the past month.
• BSE:505750 is down -4.7% underperforming the market in India which returned 8% over the past month.