Sunshield Chemicals Analysis

dividend

Pros

Cons

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

health

Pros

• Sunshield Chemicals is profitable, therefore cash runway is not a concern.
• Sunshield Chemicals is profitable, therefore cash runway is not a concern.
• Sunshield Chemicals's cash and other short term assets cover its long term commitments.

Cons

• Sunshield Chemicals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not well covered by operating cash flow (16.7%, less than 20% of total debt).
• Debt is not covered by short term assets, assets are 0.7x debt.
• The level of debt compared to net worth has increased over the past 5 years (321.3% vs 943.3% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).
• Sunshield Chemicals's level of debt (943.3%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Manoj's remuneration is lower than average for companies of similar size in India.
• Manoj's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Sunshield Chemicals management team is about average.

Cons

• The average tenure for the Sunshield Chemicals board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Sunshield Chemicals is not covered by any analysts.
• Sunshield Chemicals has significant price volatility in the past 3 months.

past

Pros

• Sunshield Chemicals has delivered over 20% year on year earnings growth in the past 5 years.
• Sunshield Chemicals used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Sunshield Chemicals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Sunshield Chemicals has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• Sunshield Chemicals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Sunshield Chemicals has become profitable in the last year making it difficult to compare the IN Chemicals industry average.

value

Pros

• Sunshield Chemicals's share price is below the future cash flow value, and at a moderate discount (> 20%).
• BSE:530845 is up 14.2% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:530845 is up 14.2% outperforming the market in India which returned 8% over the past month.

Cons

• Sunshield Chemicals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Sunshield Chemicals is overvalued based on assets compared to the IN Chemicals industry average.
• Sunshield Chemicals is overvalued based on earnings compared to the IN Chemicals industry average.
• Sunshield Chemicals is overvalued based on earnings compared to the India market.
• 530845 underperformed the Chemicals industry which returned 2.2% over the past year.
• 530845 underperformed the Market in India which returned -14.5% over the past year.