West Coast Paper Mills Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (9.3x coverage).
• West Coast Paper Mills's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• West Coast Paper Mills'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

• West Coast Paper Mills is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• West Coast Paper Mills is profitable, therefore cash runway is not a concern.
• West Coast Paper Mills is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (84.8%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2x debt.
• West Coast Paper Mills's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (124.6% vs 52.4% today).
• Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).

Cons

• West Coast Paper Mills's level of debt (52.4%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the West Coast Paper Mills board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• More shares have been bought than sold by West Coast Paper Mills individual insiders in the past 3 months.
• The tenure for the West Coast Paper Mills management team is about average.

Cons

• Shree's remuneration is higher than average for companies of similar size in India.
• Shree's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

Pros

Cons

• West Coast Paper Mills is not covered by any analysts.
• West Coast Paper Mills has significant price volatility in the past 3 months.

past

Pros

• West Coast Paper Mills has delivered over 20% year on year earnings growth in the past 5 years.
• West Coast Paper Mills used its assets more efficiently than the IN Forestry industry average last year based on Return on Assets.
• West Coast Paper Mills has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• West Coast Paper Mills has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).

Cons

• West Coast Paper Mills's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• West Coast Paper Mills's 1-year earnings growth is negative, it can't be compared to the IN Forestry industry average.

value

Pros

• West Coast Paper Mills's share price is below the future cash flow value, and at a moderate discount (> 20%).
• West Coast Paper Mills's share price is below the future cash flow value, and at a substantial discount (> 40%).
• West Coast Paper Mills is good value based on earnings compared to the IN Forestry industry average.
• West Coast Paper Mills is good value based on earnings compared to the India market.
• WSTCSTPAPR outperformed the Forestry industry which returned -48.1% over the past year.
• NSEI:WSTCSTPAPR is up 12.6% outperforming the Forestry industry which returned 7.8% over the past month.
• NSEI:WSTCSTPAPR is up 12.6% outperforming the market in India which returned 8% over the past month.

Cons

• West Coast Paper Mills is overvalued based on assets compared to the IN Forestry industry average.
• WSTCSTPAPR underperformed the Market in India which returned -14.5% over the past year.