Shemaroo Entertainment Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (14.5x coverage).
• Shemaroo Entertainment's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividend payments have increased, but Shemaroo Entertainment only paid a dividend in the past 5 years.
• Whilst dividend payments have been stable, Shemaroo Entertainment has been paying a dividend for less than 10 years.
• Shemaroo Entertainment's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Shemaroo Entertainment's earnings are expected to grow significantly at over 20% yearly.
• Shemaroo Entertainment's earnings growth is expected to exceed the India market average.
• Shemaroo Entertainment's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Shemaroo Entertainment's earnings are expected to exceed the low risk growth rate next year.
• Shemaroo Entertainment's revenue growth is expected to exceed the India market average.

Cons

• Shemaroo Entertainment's revenue is expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Shemaroo Entertainment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Shemaroo Entertainment is profitable, therefore cash runway is not a concern.
• Shemaroo Entertainment is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 4x debt.
• Shemaroo Entertainment'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 (71.8% vs 35.8% today).
• Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).
• Shemaroo Entertainment's level of debt (35.8%) compared to net worth is satisfactory (less than 40%).

Cons

• Debt is not well covered by operating cash flow (2.9%, less than 20% of total debt).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Shemaroo Entertainment board of directors is about average.
• More shares have been bought than sold by Shemaroo Entertainment individual insiders in the past 3 months.
• The tenure for the Shemaroo Entertainment management team is about average.

Cons

• Hiren's remuneration is higher than average for companies of similar size in India.
• Hiren's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

Pros

Cons

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

past

Pros

• Shemaroo Entertainment's year on year earnings growth rate has been positive over the past 5 years.
• Shemaroo Entertainment used its assets more efficiently than the IN Entertainment industry average last year based on Return on Assets.

Cons

• Shemaroo Entertainment's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Shemaroo Entertainment's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Shemaroo Entertainment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Shemaroo Entertainment's 1-year earnings growth is negative, it can't be compared to the IN Entertainment industry average.

value

Pros

• Shemaroo Entertainment is good value based on assets compared to the IN Entertainment industry average.
• Shemaroo Entertainment is good value based on expected growth next year.
• Shemaroo Entertainment is good value based on earnings compared to the IN Entertainment industry average.
• Shemaroo Entertainment is good value based on earnings compared to the India market.

Cons

• Shemaroo Entertainment's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Shemaroo Entertainment's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• SHEMAROO underperformed the Entertainment industry which returned -34.6% over the past year.
• SHEMAROO underperformed the Market in India which returned -14.5% over the past year.
• NSEI:SHEMAROO is down -13.9% underperforming the Entertainment industry which returned 18.7% over the past month.
• NSEI:SHEMAROO is down -13.9% underperforming the market in India which returned 8% over the past month.