Diffusion Engineers Limited Fundamental Analysis
Diffusion Engineers Limited (DIFFNKG.NS) shows weak financial fundamentals with a PE ratio of 31.52, profit margin of 12.38%, and ROE of 13.17%. The company generates $4.1B 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 63.6/100 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 DIFFNKG.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakDIFFNKG.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateDIFFNKG.NS shows balanced valuation metrics.
Growth Score
ModerateDIFFNKG.NS shows steady but slowing expansion.
Financial Health Score
ExcellentDIFFNKG.NS maintains a strong and stable balance sheet.
Profitability Score
WeakDIFFNKG.NS struggles to sustain strong margins.
Key Financial Metrics
Is DIFFNKG.NS Expensive or Cheap?
P/E Ratio
DIFFNKG.NS trades at 31.52 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DIFFNKG.NS's PEG of 1.05 indicates fair valuation.
Price to Book
The market values Diffusion Engineers Limited at 3.90 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.52 times EBITDA. This signals the market has high growth expectations.
How Well Does DIFFNKG.NS Make Money?
Net Profit Margin
For every $100 in sales, Diffusion Engineers Limited keeps $12.38 as profit after all expenses.
Operating Margin
Core operations generate 12.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.17 in profit for every $100 of shareholder equity.
ROA
Diffusion Engineers Limited generates $9.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Diffusion Engineers Limited generates limited operating cash flow of $137.26M, signaling weaker underlying cash strength.
Free Cash Flow
Diffusion Engineers Limited generates weak or negative free cash flow of $-21.78M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.59 in free cash annually.
FCF Yield
DIFFNKG.NS converts -0.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How DIFFNKG.NS Stacks Against Its Sector Peers
| Metric | DIFFNKG.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.52 | 31.03 | Neutral |
| ROE | 13.17% | 1250.00% | Weak |
| Net Margin | 12.38% | -20734.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 3.28 | 21.63 | Strong Liquidity |
| ROA | 9.86% | -1315991.00% (disorted) | Weak |
DIFFNKG.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Diffusion Engineers Limited'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, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure