Azure Power Global Limited
Azure Power Global Limited Fundamental Analysis
Azure Power Global Limited (AZREF) shows weak financial fundamentals with a PE ratio of -1.89, profit margin of -15.26%, and ROE of -9.97%. The company generates $20.5B in annual revenue with weak year-over-year growth of -3.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -2.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AZREF's fundamental strength across five key dimensions:
Efficiency Score
WeakAZREF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAZREF trades at attractive valuation levels.
Growth Score
WeakAZREF faces weak or negative growth trends.
Financial Health Score
ModerateAZREF shows balanced financial health with some risks.
Profitability Score
WeakAZREF struggles to sustain strong margins.
Key Financial Metrics
Is AZREF Expensive or Cheap?
P/E Ratio
AZREF trades at -1.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AZREF's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Azure Power Global Limited at 0.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -9.00 times EBITDA. This is generally considered low.
How Well Does AZREF Make Money?
Net Profit Margin
For every $100 in sales, Azure Power Global Limited keeps $-15.26 as profit after all expenses.
Operating Margin
Core operations generate 34.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-9.97 in profit for every $100 of shareholder equity.
ROA
Azure Power Global Limited generates $-1.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Azure Power Global Limited generates strong operating cash flow of $7.21B, reflecting robust business health.
Free Cash Flow
Azure Power Global Limited generates strong free cash flow of $6.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $105.24 in free cash annually.
FCF Yield
AZREF converts 1.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.10
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How AZREF Stacks Against Its Sector Peers
| Metric | AZREF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.89 | 19.71 | Better (Cheaper) |
| ROE | -9.97% | 899.00% | Weak |
| Net Margin | -15.26% | 8904.00% | Weak |
| Debt/Equity | 4.04 | 1.80 | Weak (High Leverage) |
| Current Ratio | 1.46 | 1.52 | Neutral |
| ROA | -1.80% | -6254.00% (disorted) | Weak |
AZREF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Azure Power Global Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7434.85%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-6464.78%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
9222.12%
Industry Style: Defensive, Dividend, Income
High Growth