Orient Green Power Company Analysis

dividend

Pros

Cons

• Unable to evaluate Orient Green Power's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Orient Green Power's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Orient Green Power is profitable, therefore cash runway is not a concern.
• Orient Green Power is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (21.2%, greater than 20% of total debt).
• The level of debt compared to net worth has been reduced over the past 5 years (259% vs 250.9% today).

Cons

• Orient Green Power's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not covered by short term assets, assets are 0.2x debt.
• Orient Green Power's long term commitments exceed its cash and other short term assets.
• Interest payments on debt are not well covered by earnings (EBIT is 0.9x annual interest expense, ideally 3x coverage).
• Orient Green Power's level of debt (250.9%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Orient Green Power board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Venkatachalam's compensation has increased in line with Orient Green Power recently becoming profitable.
• The average tenure for the Orient Green Power management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Venkatachalam's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Orient Green Power is not covered by any analysts.
• Orient Green Power has significant price volatility in the past 3 months.

past

Pros

• Orient Green Power has delivered over 20% year on year earnings growth in the past 5 years.
• Orient Green Power used its assets more efficiently than the IN Renewable Energy industry average last year based on Return on Assets.

Cons

• Orient Green Power has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• Orient Green Power's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Orient Green Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Orient Green Power has become profitable in the last year making it difficult to compare the IN Renewable Energy industry average.

value

Pros

• Orient Green Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Orient Green Power's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Orient Green Power is good value based on earnings compared to the India market.
• NSEI:GREENPOWER is up 70% outperforming the Renewable Energy industry which returned 13% over the past month.
• NSEI:GREENPOWER is up 70% outperforming the market in India which returned 8% over the past month.

Cons

• Orient Green Power is overvalued based on assets compared to the IN Renewable Energy industry average.
• Orient Green Power is overvalued based on earnings compared to the IN Renewable Energy industry average.
• GREENPOWER underperformed the Renewable Energy industry which returned -4.4% over the past year.
• GREENPOWER underperformed the Market in India which returned -14.5% over the past year.