Davangere Sugar Company Ltd. Fundamental Analysis
Davangere Sugar Company Ltd. Fundamental Analysis
Davangere Sugar Company Ltd. (DAVANGERE.BO) shows weak financial fundamentals with a PE ratio of 59.40, profit margin of 3.56%, and ROE of 1.99%. The company generates $1.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DAVANGERE.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakDAVANGERE.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateDAVANGERE.BO shows balanced valuation metrics.
Growth Score
ModerateDAVANGERE.BO shows steady but slowing expansion.
Financial Health Score
ExcellentDAVANGERE.BO maintains a strong and stable balance sheet.
Profitability Score
WeakDAVANGERE.BO struggles to sustain strong margins.
Key Financial Metrics
Is DAVANGERE.BO Expensive or Cheap?
P/E Ratio
DAVANGERE.BO trades at 59.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DAVANGERE.BO's PEG of -0.74 indicates potential undervaluation.
Price to Book
The market values Davangere Sugar Company Ltd. at 1.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.87 times EBITDA. This is generally considered low.
How Well Does DAVANGERE.BO Make Money?
Net Profit Margin
For every $100 in sales, Davangere Sugar Company Ltd. keeps $3.56 as profit after all expenses.
Operating Margin
Core operations generate 15.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.99 in profit for every $100 of shareholder equity.
ROA
Davangere Sugar Company Ltd. generates $1.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Davangere Sugar Company Ltd. generates limited operating cash flow of $-78.47M, signaling weaker underlying cash strength.
Free Cash Flow
Davangere Sugar Company Ltd. generates weak or negative free cash flow of $-78.76M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.08 in free cash annually.
FCF Yield
DAVANGERE.BO converts -4.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
59.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How DAVANGERE.BO Stacks Against Its Sector Peers
| Metric | DAVANGERE.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 59.40 | 19.61 | Worse (Expensive) |
| ROE | 1.99% | 769.00% | Weak |
| Net Margin | 3.56% | -3717.00% (disorted) | Weak |
| Debt/Equity | 0.50 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.96 | 2.29 | Neutral |
| ROA | 1.01% | 357.00% | Weak |
DAVANGERE.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 Davangere Sugar Company Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility