Action Construction Equipment Limited
Action Construction Equipment Limited Fundamental Analysis
Action Construction Equipment Limited (ACE.NS) shows strong financial fundamentals with a PE ratio of 24.53, profit margin of 13.16%, and ROE of 26.43%. The company generates $32.1B in annual revenue with strong year-over-year growth of 14.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ACE.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentACE.NS demonstrates superior asset utilization.
Valuation Score
ModerateACE.NS shows balanced valuation metrics.
Growth Score
ExcellentACE.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentACE.NS maintains a strong and stable balance sheet.
Profitability Score
WeakACE.NS struggles to sustain strong margins.
Key Financial Metrics
Is ACE.NS Expensive or Cheap?
P/E Ratio
ACE.NS trades at 24.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ACE.NS's PEG of 21.54 indicates potential overvaluation.
Price to Book
The market values Action Construction Equipment Limited at 5.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.79 times EBITDA. This signals the market has high growth expectations.
How Well Does ACE.NS Make Money?
Net Profit Margin
For every $100 in sales, Action Construction Equipment Limited keeps $13.16 as profit after all expenses.
Operating Margin
Core operations generate 18.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.43 in profit for every $100 of shareholder equity.
ROA
Action Construction Equipment Limited generates $14.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Action Construction Equipment Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Action Construction Equipment Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
ACE.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
21.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How ACE.NS Stacks Against Its Sector Peers
| Metric | ACE.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.53 | 26.71 | Neutral |
| ROE | 26.43% | 1311.00% | Weak |
| Net Margin | 13.16% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.27 | 10.53 | Neutral |
| ROA | 14.14% | -1537638.00% (disorted) | Strong |
ACE.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Action Construction Equipment Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
178.37%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
652.56%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
728.89%
Industry Style: Cyclical, Value, Infrastructure
High Growth