Paramount Communications Analysis

dividend

Pros

Cons

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

health

Pros

• Paramount Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Paramount Communications is profitable, therefore cash runway is not a concern.
• Paramount Communications is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.9x debt.
• Paramount Communications's cash and other short term assets cover its long term commitments.
• Paramount Communications had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
• Interest payments on debt are well covered by earnings (EBIT is 5x coverage).

Cons

• Debt is not well covered by operating cash flow (1.6%, less than 20% of total debt).
• Paramount Communications's level of debt (120.3%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Paramount Communications board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Sanjay's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by Paramount Communications individual insiders in the past 3 months.
• The average tenure for the Paramount Communications management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

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

misc

Pros

Cons

• Paramount Communications is not covered by any analysts.

past

Pros

• Paramount Communications has delivered over 20% year on year earnings growth in the past 5 years.
• Paramount Communications used its assets more efficiently than the IN Electrical industry average last year based on Return on Assets.
• Paramount Communications's earnings growth has exceeded the IN Electrical industry average in the past year (19.9% vs 11.7%).

Cons

• Paramount Communications's 1-year earnings growth is less than its 5-year average (19.9% vs 47.4%)
• Paramount Communications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Paramount Communications is good value based on earnings compared to the IN Electrical industry average.
• Paramount Communications is good value based on earnings compared to the India market.
• NSEI:PARACABLES is up 20.3% outperforming the Electrical industry which returned 9.3% over the past month.
• NSEI:PARACABLES is up 20.3% outperforming the market in India which returned 8% over the past month.

Cons

• Paramount Communications is overvalued based on assets compared to the IN Electrical industry average.
• PARACABLES underperformed the Electrical industry which returned -33.5% over the past year.
• PARACABLES underperformed the Market in India which returned -14.5% over the past year.