Pioneer Embroideries Analysis

dividend

Pros

Cons

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

health

Pros

• Pioneer Embroideries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Pioneer Embroideries is profitable, therefore cash runway is not a concern.
• Pioneer Embroideries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (76.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.8x debt.
• Pioneer Embroideries'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 (144.1% vs 41.4% today).

Cons

• Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).
• Pioneer Embroideries's level of debt (41.4%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Pioneer Embroideries board of directors is about average.
• Harsh's remuneration is about average for companies of similar size in India.
• Harsh's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Pioneer Embroideries management team is about average.

Cons

misc

Pros

Cons

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

past

Pros

• Pioneer Embroideries's 1-year earnings growth exceeds its 5-year average (315% vs -8.4%)
• Pioneer Embroideries used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
• Pioneer Embroideries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Pioneer Embroideries's earnings growth has exceeded the IN Luxury industry average in the past year (315% vs 8.3%).

Cons

• Pioneer Embroideries's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Pioneer Embroideries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Pioneer Embroideries's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Pioneer Embroideries's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Pioneer Embroideries is good value based on earnings compared to the IN Luxury industry average.
• Pioneer Embroideries is good value based on earnings compared to the India market.
• 514300 outperformed the Luxury industry which returned -22.1% over the past year.
• 514300 outperformed the Market in India which returned -14.5% over the past year.
• BSE:514300 is up 13.9% outperforming the Luxury industry which returned 9.8% over the past month.
• BSE:514300 is up 13.9% outperforming the market in India which returned 8% over the past month.

Cons

• Pioneer Embroideries is overvalued based on assets compared to the IN Luxury industry average.