Precision Wires India Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (3x coverage).
• Precision Wires India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Precision Wires India's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• Precision Wires India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Precision Wires India is profitable, therefore cash runway is not a concern.
• Precision Wires India is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 8.9x debt.
• Precision Wires India'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 (21.5% vs 16.6% today).
• Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).
• Precision Wires India's level of debt (16.6%) compared to net worth is satisfactory (less than 40%).

Cons

• Debt is not well covered by operating cash flow (16.4%, less than 20% of total debt).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Precision Wires India board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Mahendra's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Precision Wires India management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

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

misc

Pros

Cons

• Precision Wires India is not covered by any analysts.
• Precision Wires India has significant price volatility in the past 3 months.

past

Pros

• Precision Wires India has delivered over 20% year on year earnings growth in the past 5 years.
• Precision Wires India used its assets more efficiently than the IN Electrical industry average last year based on Return on Assets.
• Precision Wires India has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Precision Wires India's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Precision Wires India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Precision Wires India's 1-year earnings growth is negative, it can't be compared to the IN Electrical industry average.

value

Pros

• Precision Wires India is good value based on earnings compared to the IN Electrical industry average.
• Precision Wires India is good value based on earnings compared to the India market.
• NSEI:PRECWIRE is up 18.3% outperforming the Electrical industry which returned 9.3% over the past month.
• NSEI:PRECWIRE is up 18.3% outperforming the market in India which returned 8% over the past month.

Cons

• Precision Wires India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Precision Wires India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Precision Wires India is overvalued based on assets compared to the IN Electrical industry average.
• PRECWIRE underperformed the Electrical industry which returned -33.5% over the past year.
• PRECWIRE underperformed the Market in India which returned -14.5% over the past year.