CARE Ratings Limited
CARE Ratings Limited Fundamental Analysis
CARE Ratings Limited (CARERATING.NS) shows strong financial fundamentals with a PE ratio of 27.90, profit margin of 35.60%, and ROE of 19.83%. The company generates $4.5B in annual revenue with strong year-over-year growth of 21.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 99.5/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze CARERATING.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCARERATING.NS demonstrates superior asset utilization.
Valuation Score
WeakCARERATING.NS trades at a premium to fair value.
Growth Score
ExcellentCARERATING.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCARERATING.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentCARERATING.NS achieves industry-leading margins.
Key Financial Metrics
Is CARERATING.NS Expensive or Cheap?
P/E Ratio
CARERATING.NS trades at 27.90 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CARERATING.NS's PEG of 5.35 indicates potential overvaluation.
Price to Book
The market values CARE Ratings Limited at 5.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.88 times EBITDA. This signals the market has high growth expectations.
How Well Does CARERATING.NS Make Money?
Net Profit Margin
For every $100 in sales, CARE Ratings Limited keeps $35.60 as profit after all expenses.
Operating Margin
Core operations generate 37.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.83 in profit for every $100 of shareholder equity.
ROA
CARE Ratings Limited generates $15.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CARE Ratings Limited generates strong operating cash flow of $1.40B, reflecting robust business health.
Free Cash Flow
CARE Ratings Limited generates strong free cash flow of $1.28B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $42.57 in free cash annually.
FCF Yield
CARERATING.NS converts 2.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How CARERATING.NS Stacks Against Its Sector Peers
| Metric | CARERATING.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.90 | 18.66 | Worse (Expensive) |
| ROE | 19.83% | 806.00% | Weak |
| Net Margin | 35.60% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 6.33 | 662.02 | Strong Liquidity |
| ROA | 15.51% | -24409.00% (disorted) | Strong |
CARERATING.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CARE Ratings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.96%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
63.42%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
78.92%
Industry Style: Value, Dividend, Cyclical
High Growth