PNB Housing Finance Analysis

dividend

Pros

• Dividends after 3 years are expected to be thoroughly covered by earnings (7.5x coverage).

Cons

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

future

Pros

• PNB Housing Finance's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• PNB Housing Finance's earnings are expected to exceed the low risk growth rate next year.
• PNB Housing Finance's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• PNB Housing Finance's net income is expected to increase by more than 50% in 2 years time.
• An improvement in PNB Housing Finance's performance (ROE) is expected over the next 3 years.

Cons

• PNB Housing Finance's earnings are expected to grow by 16.7% yearly, however this is not considered high growth (20% yearly).
• PNB Housing Finance's earnings growth is positive but not above the India market average.
• PNB Housing Finance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Performance (ROE) is not expected to exceed the current IN Mortgage industry average.
• PNB Housing Finance's revenue is expected to decrease over the next 2 years.
• PNB Housing Finance's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
• PNB Housing Finance's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

health

Pros

• PNB Housing Finance's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Cons

• PNB Housing Finance reports no customer deposits, loans are made up entirely of borrowed funds.

management

Pros

• The tenure for the PNB Housing Finance board of directors is about average.

Cons

• PNB Housing Finance individual insiders have only sold shares in the past 3 months.

misc

Pros

Cons

• PNB Housing Finance has significant price volatility in the past 3 months.

past

Pros

• PNB Housing Finance has delivered over 20% year on year earnings growth in the past 5 years.

Cons

• PNB Housing Finance's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• PNB Housing Finance used its assets less efficiently than the IN Mortgage industry average last year based on Return on Assets.
• PNB Housing Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• PNB Housing Finance's 1-year earnings growth is negative, it can't be compared to the IN Mortgage industry average.

value

Pros

• PNB Housing Finance is good value based on assets compared to the IN Mortgage industry average.
• PNB Housing Finance is good value based on expected growth next year.
• PNB Housing Finance is good value based on earnings compared to the IN Mortgage industry average.
• PNB Housing Finance is good value based on earnings compared to the India market.
• NSEI:PNBHOUSING is up 13.6% outperforming the Mortgage industry which returned 7.7% over the past month.
• NSEI:PNBHOUSING is up 13.6% outperforming the market in India which returned 8% over the past month.

Cons

• PNB Housing Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• PNB Housing Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• PNBHOUSING underperformed the Mortgage industry which returned -26.3% over the past year.
• PNBHOUSING underperformed the Market in India which returned -14.5% over the past year.