Starcom Information Technology Analysis

dividend

Pros

Cons

• Unable to evaluate Starcom Information Technology's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Starcom Information Technology's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Starcom Information Technology is profitable, therefore cash runway is not a concern.
• Starcom Information Technology is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (20.5%, greater than 20% of total debt).
• The level of debt compared to net worth has been reduced over the past 5 years (1672.2% vs 563.2% today).
• Low level of unsold assets.

Cons

• Starcom Information Technology's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not covered by short term assets, assets are 0.9x debt.
• Starcom Information Technology's long term commitments exceed its cash and other short term assets.
• Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
• Starcom Information Technology's level of debt (563.2%) compared to net worth is high (greater than 40%).

management

Pros

• The tenure for the Starcom Information Technology board of directors is about average.
• The tenure for the Starcom Information Technology management team is about average.

Cons

misc

Pros

Cons

• Starcom Information Technology is not covered by any analysts.
• Starcom Information Technology has significant price volatility in the past 3 months.

past

Pros

• Starcom Information Technology has delivered over 20% year on year earnings growth in the past 5 years.

Cons

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

value

Pros

Cons

• Starcom Information Technology is overvalued based on assets compared to the IN Software industry average.
• Starcom Information Technology is overvalued based on earnings compared to the IN Software industry average.
• Starcom Information Technology is overvalued based on earnings compared to the India market.
• 531616 underperformed the Software industry which returned -27.7% over the past year.
• 531616 underperformed the Market in India which returned -14.5% over the past year.
• BSE:531616 is down -26% underperforming the Software industry which returned 11.5% over the past month.
• BSE:531616 is down -26% underperforming the market in India which returned 8% over the past month.