Websol Energy System Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Websol Energy System has not reported any payouts.
• Unable to evaluate Websol Energy System's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Websol Energy System's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Whilst loss making Websol Energy System has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -28.2% per year.
• Whilst loss making Websol Energy System has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
• Websol Energy System had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Cons

• Websol Energy System'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 (14.8%, less than 20% of total debt).
• Debt is not covered by short term assets, assets are 0.5x debt.
• Websol Energy System's long term commitments exceed its cash and other short term assets.
• Websol Energy System's level of debt (122.8%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Websol Energy System board of directors is about average.
• The tenure for the Websol Energy System management team is about average.

Cons

• Sohan's remuneration is higher than average for companies of similar size in India.
• Sohan's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Websol Energy System is not covered by any analysts.
• Websol Energy System has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Websol Energy System's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Websol Energy System does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
• It is difficult to establish if Websol Energy System has efficiently used its assets last year compared to the IN Semiconductor industry average (Return on Assets) as it is loss-making.
• It is difficult to establish if Websol Energy System improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Websol Energy System has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Websol Energy System's 1-year growth to the Asia Semiconductor industry average as it is not currently profitable.

value

Pros

• Websol Energy System's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Websol Energy System is good value based on assets compared to the IN Semiconductor industry average.
• WEBELSOLAR matched the Semiconductor industry (-38.9%) over the past year.
• NSEI:WEBELSOLAR is up 22.7% outperforming the market in India which returned 8% over the past month.

Cons

• Websol Energy System's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Websol Energy System is loss making, we can't compare its value to the IN Semiconductor industry average.
• Websol Energy System is loss making, we can't compare the value of its earnings to the India market.
• WEBELSOLAR underperformed the Market in India which returned -14.5% over the past year.
• NSEI:WEBELSOLAR is up 22.7% underperforming the Semiconductor industry which returned 121.4% over the past month.