Bharat Heavy Electricals Limited
Bharat Heavy Electricals Limited Fundamental Analysis
Bharat Heavy Electricals Limited (BHEL.BO) shows weak financial fundamentals with a PE ratio of 112.14, profit margin of 2.76%, and ROE of 3.32%. The company generates $294.5B in annual revenue with strong year-over-year growth of 19.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BHEL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakBHEL.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakBHEL.BO trades at a premium to fair value.
Growth Score
ExcellentBHEL.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBHEL.BO maintains a strong and stable balance sheet.
Profitability Score
WeakBHEL.BO struggles to sustain strong margins.
Key Financial Metrics
Is BHEL.BO Expensive or Cheap?
P/E Ratio
BHEL.BO trades at 112.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BHEL.BO's PEG of 2.47 indicates potential overvaluation.
Price to Book
The market values Bharat Heavy Electricals Limited at 3.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 40.89 times EBITDA. This signals the market has high growth expectations.
How Well Does BHEL.BO Make Money?
Net Profit Margin
For every $100 in sales, Bharat Heavy Electricals Limited keeps $2.76 as profit after all expenses.
Operating Margin
Core operations generate 3.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.32 in profit for every $100 of shareholder equity.
ROA
Bharat Heavy Electricals Limited generates $1.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bharat Heavy Electricals Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Bharat Heavy Electricals 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
BHEL.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
112.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How BHEL.BO Stacks Against Its Sector Peers
| Metric | BHEL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 112.14 | 26.71 | Worse (Expensive) |
| ROE | 3.32% | 1311.00% | Weak |
| Net Margin | 2.76% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.46 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.45 | 10.53 | Neutral |
| ROA | 1.13% | -1537638.00% (disorted) | Weak |
BHEL.BO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bharat Heavy Electricals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
136.34%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
175.64%
Industry Style: Cyclical, Value, Infrastructure
High Growth