Deepak Chemtex Ltd. Fundamental Analysis
Deepak Chemtex Ltd. (DEEPAKCHEM.BO) shows moderate financial fundamentals with a PE ratio of 10.36, profit margin of 12.19%, and ROE of 13.39%. The company generates $0.7B 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 56.0/100 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 DEEPAKCHEM.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDEEPAKCHEM.BO demonstrates superior asset utilization.
Valuation Score
ExcellentDEEPAKCHEM.BO trades at attractive valuation levels.
Growth Score
ModerateDEEPAKCHEM.BO shows steady but slowing expansion.
Financial Health Score
ExcellentDEEPAKCHEM.BO maintains a strong and stable balance sheet.
Profitability Score
WeakDEEPAKCHEM.BO struggles to sustain strong margins.
Key Financial Metrics
Is DEEPAKCHEM.BO Expensive or Cheap?
P/E Ratio
DEEPAKCHEM.BO trades at 10.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DEEPAKCHEM.BO's PEG of -0.31 indicates potential undervaluation.
Price to Book
The market values Deepak Chemtex Ltd. at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.45 times EBITDA. This is generally considered low.
How Well Does DEEPAKCHEM.BO Make Money?
Net Profit Margin
For every $100 in sales, Deepak Chemtex Ltd. keeps $12.19 as profit after all expenses.
Operating Margin
Core operations generate 12.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.39 in profit for every $100 of shareholder equity.
ROA
Deepak Chemtex Ltd. generates $11.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Deepak Chemtex Ltd. generates limited operating cash flow of $69.31M, signaling weaker underlying cash strength.
Free Cash Flow
Deepak Chemtex Ltd. generates weak or negative free cash flow of $-55.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-5.08 in free cash annually.
FCF Yield
DEEPAKCHEM.BO converts -6.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How DEEPAKCHEM.BO Stacks Against Its Sector Peers
| Metric | DEEPAKCHEM.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.36 | 28.20 | Better (Cheaper) |
| ROE | 13.39% | 1036.00% | Weak |
| Net Margin | 12.19% | -1585.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.62 | Strong (Low Leverage) |
| Current Ratio | 4.45 | 3.22 | Strong Liquidity |
| ROA | 11.06% | 547.00% | Weak |
DEEPAKCHEM.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Deepak Chemtex 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: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value