Rajratan Global Wire Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (38x coverage).
• Rajratan Global Wire'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%).
• Rajratan Global Wire's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Rajratan Global Wire's earnings are expected to exceed the low risk growth rate next year.

Cons

health

Pros

• Rajratan Global Wire is profitable, therefore cash runway is not a concern.
• Rajratan Global Wire is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (34.5%, greater than 20% of total debt).
• Rajratan Global Wire'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 (235.8% vs 84.3% today).
• Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).

Cons

• Rajratan Global Wire's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not covered by short term assets, assets are 0.9x debt.
• Rajratan Global Wire's level of debt (84.3%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Sunil's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the Rajratan Global Wire board of directors is less than 3 years, this suggests a new board.
• Sunil's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Rajratan Global Wire is covered by less than 3 analysts.

past

Pros

• Rajratan Global Wire's 1-year earnings growth exceeds its 5-year average (23.6% vs 20.2%)
• Rajratan Global Wire has delivered over 20% year on year earnings growth in the past 5 years.
• Rajratan Global Wire used its assets more efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
• Rajratan Global Wire's earnings growth has exceeded the IN Metals and Mining industry average in the past year (23.6% vs -4.8%).

Cons

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

value

Pros

• Rajratan Global Wire is good value based on earnings compared to the IN Metals and Mining industry average.
• Rajratan Global Wire is good value based on earnings compared to the India market.

Cons

• Rajratan Global Wire's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Rajratan Global Wire's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Rajratan Global Wire is overvalued based on assets compared to the IN Metals and Mining industry average.