Akzo Nobel India Limited
Akzo Nobel India Limited Fundamental Analysis
Akzo Nobel India Limited (AKZOINDIA.BO) shows moderate financial fundamentals with a PE ratio of 7.19, profit margin of 52.04%, and ROE of 1.23%. The company generates $37.6B in annual revenue with moderate year-over-year growth of 3.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.5/100 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 AKZOINDIA.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAKZOINDIA.BO demonstrates superior asset utilization.
Valuation Score
ExcellentAKZOINDIA.BO trades at attractive valuation levels.
Growth Score
WeakAKZOINDIA.BO faces weak or negative growth trends.
Financial Health Score
ExcellentAKZOINDIA.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateAKZOINDIA.BO maintains healthy but balanced margins.
Key Financial Metrics
Is AKZOINDIA.BO Expensive or Cheap?
P/E Ratio
AKZOINDIA.BO trades at 7.19 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AKZOINDIA.BO's PEG of -4.18 indicates potential undervaluation.
Price to Book
The market values Akzo Nobel India Limited at 6.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.89 times EBITDA. This is generally considered low.
How Well Does AKZOINDIA.BO Make Money?
Net Profit Margin
For every $100 in sales, Akzo Nobel India Limited keeps $52.04 as profit after all expenses.
Operating Margin
Core operations generate 17.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.23 in profit for every $100 of shareholder equity.
ROA
Akzo Nobel India Limited generates $53.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Akzo Nobel India Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Akzo Nobel India 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
AKZOINDIA.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.23
vs 25 benchmark
ROA
Return on assets percentage
0.54
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How AKZOINDIA.BO Stacks Against Its Sector Peers
| Metric | AKZOINDIA.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.19 | 27.18 | Better (Cheaper) |
| ROE | 123.41% | 860.00% | Weak |
| Net Margin | 52.04% | -121084.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.42 | 4.81 | Neutral |
| ROA | 53.59% | -7173.00% (disorted) | Strong |
AKZOINDIA.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Akzo Nobel India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.06%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
80.92%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-16.87%
Industry Style: Cyclical, Commodity, Value
Declining