Veedol Corporation Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are covered by earnings (1.5x coverage).
• Tide Water Oil (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Tide Water Oil (India)'s dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• Tide Water Oil (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Tide Water Oil (India) is profitable, therefore cash runway is not a concern.
• Tide Water Oil (India) is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (304.3%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 17x debt.
• Tide Water Oil (India)'s cash and other short term assets cover its long term commitments.
• Tide Water Oil (India) earns more interest than it pays, coverage of interest payments is not a concern.
• Tide Water Oil (India)'s level of debt (5.2%) compared to net worth is satisfactory (less than 40%).

Cons

• The level of debt compared to net worth has increased over the past 5 years (3.9% vs 5.2% today).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Tide Water Oil (India) board of directors is about average.
• Rajendra's remuneration is lower than average for companies of similar size in India.
• Rajendra's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

• Tide Water Oil (India) is not covered by any analysts.
• Tide Water Oil (India) has significant price volatility in the past 3 months.

past

Pros

• Tide Water Oil (India)'s 1-year earnings growth exceeds its 5-year average (24.5% vs -4.4%)
• Tide Water Oil (India) used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Tide Water Oil (India)'s earnings growth has exceeded the IN Chemicals industry average in the past year (24.5% vs 9.1%).

Cons

• Tide Water Oil (India)'s year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Tide Water Oil (India)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Tide Water Oil (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Tide Water Oil (India) is good value based on earnings compared to the India market.
• NSEI:TIDEWATER is up 11.4% outperforming the Chemicals industry which returned 6.9% over the past month.
• NSEI:TIDEWATER is up 11.4% outperforming the market in India which returned 8% over the past month.

Cons

• Tide Water Oil (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Tide Water Oil (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Tide Water Oil (India) is overvalued based on assets compared to the IN Chemicals industry average.
• Tide Water Oil (India) is overvalued based on earnings compared to the IN Chemicals industry average.
• TIDEWATER underperformed the Chemicals industry which returned 2.2% over the past year.
• TIDEWATER underperformed the Market in India which returned -14.5% over the past year.