Adani Enterprises Limited
Adani Enterprises Limited Fundamental Analysis
Adani Enterprises Limited (ADANIENT.BO) shows moderate financial fundamentals with a PE ratio of 17.75, profit margin of 14.11%, and ROE of 25.72%. The company generates $911.5B in annual revenue with weak year-over-year growth of 1.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -118.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ADANIENT.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakADANIENT.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentADANIENT.BO trades at attractive valuation levels.
Growth Score
WeakADANIENT.BO faces weak or negative growth trends.
Financial Health Score
WeakADANIENT.BO carries high financial risk with limited liquidity.
Profitability Score
WeakADANIENT.BO struggles to sustain strong margins.
Key Financial Metrics
Is ADANIENT.BO Expensive or Cheap?
P/E Ratio
ADANIENT.BO trades at 17.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ADANIENT.BO's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Adani Enterprises Limited at 4.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.42 times EBITDA. This is generally considered low.
How Well Does ADANIENT.BO Make Money?
Net Profit Margin
For every $100 in sales, Adani Enterprises Limited keeps $14.11 as profit after all expenses.
Operating Margin
Core operations generate 11.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.72 in profit for every $100 of shareholder equity.
ROA
Adani Enterprises Limited generates $6.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adani Enterprises Limited generates limited operating cash flow of $6.03B, signaling weaker underlying cash strength.
Free Cash Flow
Adani Enterprises Limited generates weak or negative free cash flow of $-119.48B, restricting financial flexibility.
FCF Per Share
Each share generates $-103.52 in free cash annually.
FCF Yield
ADANIENT.BO converts -5.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ADANIENT.BO Stacks Against Its Sector Peers
| Metric | ADANIENT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.75 | 20.21 | Better (Cheaper) |
| ROE | 25.72% | 936.00% | Weak |
| Net Margin | 14.11% | -49264.00% (disorted) | Strong |
| Debt/Equity | 2.03 | -0.56 (disorted) | Distorted |
| Current Ratio | 0.97 | 4.81 | Weak Liquidity |
| ROA | 6.05% | -11576037.00% (disorted) | Weak |
ADANIENT.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adani Enterprises Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
111.97%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
486.16%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
74.71%
Industry Style: Cyclical, Value, Commodity
High Growth