SBI Cards & Payment Services Analysis

dividend

Pros

Cons

• SBI Cards and Payment Services is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
• No need to calculate the sustainability of SBI Cards and Payment Services's dividends as it is not paying a notable one for India.
• No need to calculate the sustainability of SBI Cards and Payment Services's dividends in 3 years as they are not expected to pay a notable one for India.
• SBI Cards and Payment Services is not paying a notable dividend for India, therefore no need to check if the payments are stable.
• SBI Cards and Payment Services's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• SBI Cards and Payment Services's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• SBI Cards and Payment Services's earnings are expected to grow significantly at over 20% yearly.
• SBI Cards and Payment Services's earnings growth is expected to exceed the India market average.
• SBI Cards and Payment Services's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• SBI Cards and Payment Services's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• SBI Cards and Payment Services's net income is expected to increase by more than 50% in 2 years time.
• SBI Cards and Payment Services is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Consumer Finance industry average.
• An improvement in SBI Cards and Payment Services's performance (ROE) is expected over the next 3 years.
• SBI Cards and Payment Services's revenue is expected to increase by more than 50% in 2 years time.
• SBI Cards and Payment Services's revenue is expected to grow significantly at over 20% yearly.
• SBI Cards and Payment Services's revenue growth is expected to exceed the India market average.

Cons

• SBI Cards and Payment Services's earnings are expected to decrease over the next year.

health

Pros

• SBI Cards and Payment Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• SBI Cards and Payment Services is profitable, therefore cash runway is not a concern.
• SBI Cards and Payment Services is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.4x debt.
• SBI Cards and Payment Services'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 (486.7% vs 321.5% today).
• Low level of unsold assets.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• SBI Cards and Payment Services's level of debt (321.5%) compared to net worth is high (greater than 40%).

management

Pros

• Hardayal's remuneration is lower than average for companies of similar size in India.
• Hardayal's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the SBI Cards and Payment Services board of directors is less than 3 years, this suggests a new board.

past

Pros

• SBI Cards and Payment Services's 1-year earnings growth exceeds its 5-year average (43.6% vs 27.9%)
• SBI Cards and Payment Services has delivered over 20% year on year earnings growth in the past 5 years.
• SBI Cards and Payment Services used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
• SBI Cards and Payment Services's earnings growth has exceeded the IN Consumer Finance industry average in the past year (43.6% vs 11%).

Cons

• Whilst SBI Cards and Payment Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.

value

Pros

• BSE:543066 is up 8.5% along with the India market (8%) over the past month.

Cons

• SBI Cards and Payment Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• SBI Cards and Payment Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• SBI Cards and Payment Services is overvalued based on assets compared to the IN Consumer Finance industry average.
• SBI Cards and Payment Services is poor value based on expected growth next year.
• SBI Cards and Payment Services is overvalued based on earnings compared to the IN Consumer Finance industry average.
• SBI Cards and Payment Services is overvalued based on earnings compared to the India market.
• BSE:543066 is up 8.5% underperforming the Consumer Finance industry which returned 10.3% over the past month.