Southern Magnesium & Chemicals Analysis

dividend

Pros

Cons

• Unable to evaluate Southern Magnesium and Chemicals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Southern Magnesium and Chemicals's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Southern Magnesium and Chemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Southern Magnesium and Chemicals has been profitable on average in the past, therefore cash runway is not a concern.
• Southern Magnesium and Chemicals has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 4.1x debt.
• Southern Magnesium and Chemicals's cash and other short term assets cover its long term commitments.
• Southern Magnesium and Chemicals had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
• Southern Magnesium and Chemicals's level of debt (27.8%) compared to net worth is satisfactory (less than 40%).

Cons

• Debt is not well covered by operating cash flow (14.4%, less than 20% of total debt).
• Southern Magnesium and Chemicals is making a loss, therefore interest payments are not well covered by earnings.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Southern Magnesium and Chemicals board of directors is about average.
• Nuthakki's remuneration is lower than average for companies of similar size in India.

Cons

• Nuthakki's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Southern Magnesium and Chemicals is not covered by any analysts.
• BSE:513498 has not traded for 8 days.

past

Pros

Cons

• Unable to compare Southern Magnesium and Chemicals's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Southern Magnesium and Chemicals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• It is difficult to establish if Southern Magnesium and Chemicals has efficiently used its assets last year compared to the IN Metals and Mining industry average (Return on Assets) as it is loss-making.
• It is difficult to establish if Southern Magnesium and Chemicals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Southern Magnesium and Chemicals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Southern Magnesium and Chemicals's 1-year growth to the IN Metals and Mining industry average as it is not currently profitable.

value

Pros

Cons

• Southern Magnesium and Chemicals is overvalued based on assets compared to the IN Metals and Mining industry average.
• Southern Magnesium and Chemicals is loss making, we can't compare its value to the IN Metals and Mining industry average.
• Southern Magnesium and Chemicals is loss making, we can't compare the value of its earnings to the India market.
• 513498 underperformed the Metals and Mining industry which returned -28.6% over the past year.
• 513498 underperformed the Market in India which returned -14.5% over the past year.
• BSE:513498 is flat (-0.7%) underperforming the Metals and Mining industry which returned 7.5% over the past month.
• BSE:513498 is flat (-0.7%) underperforming the market in India which returned 8% over the past month.