ERP Soft Systems Limited
ERP Soft Systems Limited Fundamental Analysis
ERP Soft Systems Limited (ERPSOFT.BO) shows weak financial fundamentals with a PE ratio of 97.57, profit margin of 2.27%, and ROE of 1.34%. The company generates $0.1B 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 40.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ERPSOFT.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakERPSOFT.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateERPSOFT.BO shows balanced valuation metrics.
Growth Score
ModerateERPSOFT.BO shows steady but slowing expansion.
Financial Health Score
ExcellentERPSOFT.BO maintains a strong and stable balance sheet.
Profitability Score
WeakERPSOFT.BO struggles to sustain strong margins.
Key Financial Metrics
Is ERPSOFT.BO Expensive or Cheap?
P/E Ratio
ERPSOFT.BO trades at 97.57 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ERPSOFT.BO's PEG of -16.10 indicates potential undervaluation.
Price to Book
The market values ERP Soft Systems Limited at 1.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 62.73 times EBITDA. This signals the market has high growth expectations.
How Well Does ERPSOFT.BO Make Money?
Net Profit Margin
For every $100 in sales, ERP Soft Systems Limited keeps $2.27 as profit after all expenses.
Operating Margin
Core operations generate 3.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.34 in profit for every $100 of shareholder equity.
ROA
ERP Soft Systems Limited generates $1.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ERP Soft Systems Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
ERP Soft Systems Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
ERPSOFT.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
97.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-16.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ERPSOFT.BO Stacks Against Its Sector Peers
| Metric | ERPSOFT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 97.57 | 35.62 | Worse (Expensive) |
| ROE | 1.34% | 1160.00% | Weak |
| Net Margin | 2.27% | -136515.00% (disorted) | Weak |
| Debt/Equity | 0.09 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 4.40 | 4.79 | Strong Liquidity |
| ROA | 1.05% | -311498.00% (disorted) | Weak |
ERPSOFT.BO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ERP Soft Systems 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: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta