Nucleus Software Exports Analysis

dividend

Pros

• Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).

Cons

• Unable to calculate sustainability of dividends as Nucleus Software Exports has not reported any payouts.
• Unable to evaluate Nucleus Software Exports's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Nucleus Software Exports's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

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

Cons

• Cash flow for Nucleus Software Exports is expected to decrease over the next 2 years.
• Nucleus Software Exports's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
• Nucleus Software Exports's earnings growth is positive but not above the India market average.
• Nucleus Software Exports's earnings growth is positive but not above the low risk savings rate of 7.2%.
• Nucleus Software Exports's earnings are expected to decrease over the next year.
• Nucleus Software Exports's net income is expected to increase but not above the 50% threshold in 2 years time.
• Nucleus Software Exports is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• A decline in Nucleus Software Exports's performance (ROE) is expected over the next 3 years.
• Nucleus Software Exports's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Nucleus Software Exports's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
• Nucleus Software Exports's revenue growth is positive but not above the India market average.

health

Pros

• Nucleus Software Exports is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Nucleus Software Exports is profitable, therefore cash runway is not a concern.
• Nucleus Software Exports is profitable, therefore cash runway is not a concern.
• Nucleus Software Exports has no debt, it does not need to be covered by operating cash flow.
• Nucleus Software Exports has no debt, it does not need to be covered by short term assets.
• Nucleus Software Exports's cash and other short term assets cover its long term commitments.
• Nucleus Software Exports has no debt compared to 5 years ago when it was 0.3%.
• Nucleus Software Exports has no debt, therefore coverage of interest payments is not a concern.
• Nucleus Software Exports has no debt.
• Low level of unsold assets.

Cons

management

Pros

• The tenure for the Nucleus Software Exports board of directors is about average.
• The tenure for the Nucleus Software Exports management team is about average.

Cons

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

misc

Pros

Cons

• Nucleus Software Exports is covered by less than 3 analysts.
• Nucleus Software Exports has significant price volatility in the past 3 months.

past

Pros

• Nucleus Software Exports's 1-year earnings growth exceeds its 5-year average (19.4% vs 11.6%)
• Nucleus Software Exports's year on year earnings growth rate has been positive over the past 5 years.
• Nucleus Software Exports used its assets more efficiently than the IN Software industry average last year based on Return on Assets.
• Nucleus Software Exports has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Nucleus Software Exports's earnings growth has exceeded the IN Software industry average in the past year (19.4% vs -9.1%).

Cons

• Nucleus Software Exports has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Nucleus Software Exports is good value based on earnings compared to the IN Software industry average.
• Nucleus Software Exports is good value based on earnings compared to the India market.
• 531209 matched the Software industry (-27.7%) over the past year.
• BSE:531209 is up 16.1% outperforming the Software industry which returned 11.5% over the past month.
• BSE:531209 is up 16.1% outperforming the market in India which returned 8% over the past month.

Cons

• Nucleus Software Exports's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Nucleus Software Exports's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Nucleus Software Exports is overvalued based on assets compared to the IN Software industry average.
• Nucleus Software Exports is poor value based on expected growth next year.
• 531209 underperformed the Market in India which returned -14.5% over the past year.