Texmaco Rail & Engineering Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (8.6x coverage).
• Texmaco Rail & Engineering's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Texmaco Rail & Engineering has only been paying a dividend for 9 years, and since then dividends per share have fallen.
• Texmaco Rail & Engineering has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• Texmaco Rail & Engineering's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Texmaco Rail & Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Texmaco Rail & Engineering is profitable, therefore cash runway is not a concern.
• Texmaco Rail & Engineering is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3.3x debt.
• Texmaco Rail & Engineering's cash and other short term assets cover its long term commitments.

Cons

• Debt is not well covered by operating cash flow (0.7%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (17.6% vs 60.6% today).
• Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
• Texmaco Rail & Engineering's level of debt (60.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Texmaco Rail & Engineering board of directors is about average.

Cons

• The average tenure for the Texmaco Rail & Engineering management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Texmaco Rail & Engineering is not covered by any analysts.
• Texmaco Rail & Engineering has significant price volatility in the past 3 months.

past

Pros

• Texmaco Rail & Engineering has delivered over 20% year on year earnings growth in the past 5 years.
• Texmaco Rail & Engineering has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Texmaco Rail & Engineering's earnings growth has exceeded the IN Machinery industry average in the past year (13.1% vs -7.2%).

Cons

• Texmaco Rail & Engineering's 1-year earnings growth is less than its 5-year average (13.1% vs 38.6%)
• Texmaco Rail & Engineering used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
• Texmaco Rail & Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Texmaco Rail & Engineering is good value based on assets compared to the IN Machinery industry average.
• Texmaco Rail & Engineering is good value based on earnings compared to the IN Machinery industry average.
• Texmaco Rail & Engineering is good value based on earnings compared to the India market.
• BSE:533326 is up 10.7% outperforming the Machinery industry which returned 8.3% over the past month.
• BSE:533326 is up 10.7% outperforming the market in India which returned 8% over the past month.

Cons

• Texmaco Rail & Engineering's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Texmaco Rail & Engineering's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• 533326 underperformed the Machinery industry which returned -23.7% over the past year.
• 533326 underperformed the Market in India which returned -14.5% over the past year.