CEAT Limited
CEAT Limited Fundamental Analysis
CEAT Limited (CEATLTD.BO) shows moderate financial fundamentals with a PE ratio of 19.43, profit margin of 4.45%, and ROE of 15.20%. The company generates $157.0B in annual revenue with strong year-over-year growth of 10.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.1/100 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 CEATLTD.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakCEATLTD.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCEATLTD.BO trades at attractive valuation levels.
Growth Score
ModerateCEATLTD.BO shows steady but slowing expansion.
Financial Health Score
ModerateCEATLTD.BO shows balanced financial health with some risks.
Profitability Score
ModerateCEATLTD.BO maintains healthy but balanced margins.
Key Financial Metrics
Is CEATLTD.BO Expensive or Cheap?
P/E Ratio
CEATLTD.BO trades at 19.43 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CEATLTD.BO's PEG of 0.41 indicates potential undervaluation.
Price to Book
The market values CEAT Limited at 2.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.05 times EBITDA. This is generally considered low.
How Well Does CEATLTD.BO Make Money?
Net Profit Margin
For every $100 in sales, CEAT Limited keeps $4.45 as profit after all expenses.
Operating Margin
Core operations generate 13.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.20 in profit for every $100 of shareholder equity.
ROA
CEAT Limited generates $5.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CEAT Limited generates limited operating cash flow of $8.75B, signaling weaker underlying cash strength.
Free Cash Flow
CEAT Limited generates weak or negative free cash flow of $4.56B, restricting financial flexibility.
FCF Per Share
Each share generates $112.64 in free cash annually.
FCF Yield
CEATLTD.BO converts 3.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How CEATLTD.BO Stacks Against Its Sector Peers
| Metric | CEATLTD.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.43 | 24.33 | Better (Cheaper) |
| ROE | 15.20% | 1161.00% | Weak |
| Net Margin | 4.45% | 875.00% | Weak |
| Debt/Equity | 0.65 | 0.78 | Neutral |
| Current Ratio | 0.68 | 2.83 | Weak Liquidity |
| ROA | 5.02% | -8060.00% (disorted) | Weak |
CEATLTD.BO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CEAT Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
94.99%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
104.38%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
14.18%
Industry Style: Cyclical, Growth, Discretionary
High Growth