Sterling & Wilson Renewable Energy Analysis

dividend

Pros

• Dividends paid are well covered by earnings (4.9x coverage).
• Sterling and Wilson Solar's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Sterling and Wilson Solar's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Sterling and Wilson Solar only just started paying a dividend, it is too early to tell if payments are increasing.
• It is too early to tell whether Sterling and Wilson Solar has stable dividend payments.

health

Pros

• Sterling and Wilson Solar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Sterling and Wilson Solar is profitable, therefore cash runway is not a concern.
• Sterling and Wilson Solar is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 2.5x debt.
• Sterling and Wilson Solar's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 22.3x coverage).
• Low level of unsold assets.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Sterling and Wilson Solar's level of debt (232%) compared to net worth is high (greater than 40%).

misc

Pros

Cons

• Sterling and Wilson Solar is not covered by any analysts.
• Sterling and Wilson Solar has significant price volatility in the past 3 months.

past

Pros

• Sterling and Wilson Solar used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.

Cons

• Sterling and Wilson Solar's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Whilst Sterling and Wilson Solar made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
• Sterling and Wilson Solar's 1-year earnings growth is negative, it can't be compared to the IN Construction industry average.

value

Pros

• Sterling and Wilson Solar is good value based on earnings compared to the IN Construction industry average.
• Sterling and Wilson Solar is good value based on earnings compared to the India market.
• NSEI:SWSOLAR is up 35.1% outperforming the Construction industry which returned 7.1% over the past month.
• NSEI:SWSOLAR is up 35.1% outperforming the market in India which returned 8% over the past month.

Cons

• Sterling and Wilson Solar's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Sterling and Wilson Solar's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Sterling and Wilson Solar is overvalued based on assets compared to the IN Construction industry average.