Oricon Enterprises Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (5.2x coverage).
• Oricon Enterprises's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Oricon Enterprises's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• Oricon Enterprises is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Oricon Enterprises is profitable, therefore cash runway is not a concern.
• Oricon Enterprises is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (51.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.4x debt.
• Oricon Enterprises's cash and other short term assets cover its long term commitments.
• Oricon Enterprises earns more interest than it pays, coverage of interest payments is not a concern.
• Oricon Enterprises's level of debt (38.3%) compared to net worth is satisfactory (less than 40%).

Cons

• The level of debt compared to net worth has increased over the past 5 years (23.4% vs 38.3% today).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Oricon Enterprises board of directors is about average.
• Adarsh's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Adarsh's remuneration is higher than average for companies of similar size in India.
• The average tenure for the Oricon Enterprises management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

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

past

Pros

• Oricon Enterprises's 1-year earnings growth exceeds its 5-year average (29.9% vs 6.7%)
• Oricon Enterprises's year on year earnings growth rate has been positive over the past 5 years.
• Oricon Enterprises has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Oricon Enterprises's earnings growth has exceeded the Asia Shipping industry average in the past year (29.9% vs -13.1%).

Cons

• Oricon Enterprises used its assets less efficiently than the Asia Shipping industry average last year based on Return on Assets.
• Oricon Enterprises has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Oricon Enterprises's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Oricon Enterprises's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Oricon Enterprises is good value based on assets compared to the IN Shipping industry average.
• Oricon Enterprises is good value based on earnings compared to the Asia Shipping industry average.
• Oricon Enterprises is good value based on earnings compared to the India market.
• NSEI:ORICONENT is up 23.6% outperforming the Shipping industry which returned 18.7% over the past month.
• NSEI:ORICONENT is up 23.6% outperforming the market in India which returned 8% over the past month.

Cons

• ORICONENT underperformed the Shipping industry which returned 31% over the past year.
• ORICONENT underperformed the Market in India which returned -14.5% over the past year.