Resonance Specialities Analysis

dividend

Pros

• Resonance Specialties's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Resonance Specialties's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividend payments have increased, but Resonance Specialties only paid a dividend in the past 6 years.
• Resonance Specialties has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

health

Pros

• Resonance Specialties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Resonance Specialties is profitable, therefore cash runway is not a concern.
• Resonance Specialties is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (686.2%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 30.2x debt.
• Resonance Specialties'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 (13.7% vs 2.7% today).
• Interest payments on debt are well covered by earnings (EBIT is 301.1x coverage).
• Resonance Specialties's level of debt (2.7%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

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

Cons

• The average tenure for the Resonance Specialties management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

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

past

Pros

• Resonance Specialties's 1-year earnings growth exceeds its 5-year average (503.3% vs 35.2%)
• Resonance Specialties has delivered over 20% year on year earnings growth in the past 5 years.
• Resonance Specialties used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Resonance Specialties has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Resonance Specialties has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Resonance Specialties's earnings growth has exceeded the IN Chemicals industry average in the past year (503.3% vs 9.1%).

Cons

value

Pros

• Resonance Specialties is good value based on earnings compared to the IN Chemicals industry average.
• Resonance Specialties is good value based on earnings compared to the India market.
• 524218 outperformed the Chemicals industry which returned 2.2% over the past year.
• 524218 outperformed the Market in India which returned -14.5% over the past year.

Cons

• Resonance Specialties's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Resonance Specialties's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Resonance Specialties is overvalued based on assets compared to the IN Chemicals industry average.
• BSE:524218 is flat (-0.1%) underperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:524218 is flat (-0.1%) underperforming the market in India which returned 8% over the past month.