MAS Financial Services Analysis

dividend

Pros

• Dividends paid are well covered by earnings (4.1x coverage).
• MAS Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividend payments have increased, but MAS Financial Services only paid a dividend in the past 3 years.
• MAS Financial Services has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• MAS Financial Services's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Performance (ROE) is expected to be above the current IN Consumer Finance industry average.

Cons

• MAS Financial Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• A decline in MAS Financial Services's performance (ROE) is expected over the next 3 years.

health

Pros

• MAS Financial Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• MAS Financial Services is profitable, therefore cash runway is not a concern.
• MAS Financial Services is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.7x debt.
• MAS Financial Services'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 (638.6% vs 262.3% today).
• Low level of unsold assets.

Cons

• Debt is not well covered by operating cash flow (7%, less than 20% of total debt).
• MAS Financial Services's level of debt (262.3%) compared to net worth is high (greater than 40%).

management

Pros

• The tenure for the MAS Financial Services board of directors is about average.
• Darshana's remuneration is lower than average for companies of similar size in India.
• More shares have been bought than sold by MAS Financial Services individual insiders in the past 3 months.
• The average tenure for the MAS Financial Services management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Darshana's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

misc

Pros

Cons

• MAS Financial Services is covered by less than 3 analysts.
• MAS Financial Services has significant price volatility in the past 3 months.

past

Pros

• MAS Financial Services has delivered over 20% year on year earnings growth in the past 5 years.
• MAS Financial Services used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
• MAS Financial Services's earnings growth has exceeded the IN Consumer Finance industry average in the past year (17.1% vs 11%).

Cons

• MAS Financial Services's 1-year earnings growth is less than its 5-year average (17.1% vs 30.1%)
• MAS Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• MASFIN outperformed the Consumer Finance industry which returned -28.8% over the past year.
• MASFIN outperformed the Market in India which returned -14.5% over the past year.
• NSEI:MASFIN is up 17.3% outperforming the Consumer Finance industry which returned 10.3% over the past month.
• NSEI:MASFIN is up 17.3% outperforming the market in India which returned 8% over the past month.

Cons

• MAS Financial Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• MAS Financial Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• MAS Financial Services is overvalued based on assets compared to the IN Consumer Finance industry average.
• MAS Financial Services is overvalued based on earnings compared to the IN Consumer Finance industry average.
• MAS Financial Services is overvalued based on earnings compared to the India market.