Oriental Aromatics Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (17x coverage).
• Oriental Aromatics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Oriental Aromatics's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Oriental Aromatics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Oriental Aromatics is profitable, therefore cash runway is not a concern.
• Oriental Aromatics is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 2.3x debt.
• Oriental Aromatics'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 (104.3% vs 46.6% today).
• Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Oriental Aromatics's level of debt (46.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Oriental Aromatics board of directors is about average.
• The tenure for the Oriental Aromatics management team is about average.

Cons

misc

Pros

Cons

• Oriental Aromatics is not covered by any analysts.
• Oriental Aromatics's last earnings update was 293 days ago.
• Oriental Aromatics has significant price volatility in the past 3 months.

past

Pros

• Oriental Aromatics used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Oriental Aromatics's earnings growth has exceeded the IN Chemicals industry average in the past year (128.7% vs 9.1%).

Cons

• Oriental Aromatics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Oriental Aromatics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Oriental Aromatics is good value based on earnings compared to the India market.
• BSE:500078 is up 19.5% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:500078 is up 19.5% outperforming the market in India which returned 8% over the past month.

Cons

• Oriental Aromatics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Oriental Aromatics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Oriental Aromatics is overvalued based on assets compared to the IN Chemicals industry average.
• Oriental Aromatics is overvalued based on earnings compared to the IN Chemicals industry average.
• 500078 underperformed the Chemicals industry which returned 2.2% over the past year.
• 500078 underperformed the Market in India which returned -14.5% over the past year.