Sasken Technologies Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (2.4x coverage).
• Sasken Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Sasken Technologies'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%).

future

Pros

• Sasken Technologies's earnings are expected to exceed the low risk growth rate next year.

Cons

• Cash flow for Sasken Technologies is expected to decrease over the next 2 years.
• Sasken Technologies's earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
• Sasken Technologies's earnings growth is positive but not above the India market average.
• Sasken Technologies's earnings growth is positive but not above the low risk savings rate of 7.2%.

health

Pros

• Sasken Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Sasken Technologies is profitable, therefore cash runway is not a concern.
• Sasken Technologies is profitable, therefore cash runway is not a concern.
• Sasken Technologies has no debt, it does not need to be covered by operating cash flow.
• Sasken Technologies has no debt, it does not need to be covered by short term assets.
• Sasken Technologies's cash and other short term assets cover its long term commitments.
• Sasken Technologies has no debt compared to 5 years ago when it was 0.2%.
• Sasken Technologies has no debt, therefore coverage of interest payments is not a concern.
• Sasken Technologies has no debt.
• Low level of unsold assets.

Cons

management

Pros

• The average tenure for the Sasken Technologies board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Rajiv's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by Sasken Technologies individual insiders in the past 3 months.
• The tenure for the Sasken Technologies management team is about average.

Cons

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

misc

Pros

Cons

• Sasken Technologies is covered by less than 3 analysts.
• Sasken Technologies has significant price volatility in the past 3 months.

past

Pros

• Sasken Technologies used its assets more efficiently than the IN Software industry average last year based on Return on Assets.
• Sasken Technologies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Sasken Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Sasken Technologies's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Sasken Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Sasken Technologies's 1-year earnings growth is negative, it can't be compared to the IN Software industry average.

value

Pros

• Sasken Technologies is good value based on earnings compared to the IN Software industry average.
• Sasken Technologies is good value based on earnings compared to the India market.
• NSEI:SASKEN is up 13.8% outperforming the Software industry which returned 11.5% over the past month.
• NSEI:SASKEN is up 13.8% outperforming the market in India which returned 8% over the past month.

Cons

• Sasken Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Sasken Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Sasken Technologies is overvalued based on assets compared to the IN Software industry average.
• SASKEN underperformed the Software industry which returned -27.7% over the past year.
• SASKEN underperformed the Market in India which returned -14.5% over the past year.