Escorts Kubota Limited
Escorts Kubota Limited Fundamental Analysis
Escorts Kubota Limited (ESCORTS.NS) shows strong financial fundamentals with a PE ratio of 16.57, profit margin of 21.71%, and ROE of 22.54%. The company generates $110.2B in annual revenue with moderate year-over-year growth of 4.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.4/100 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 ESCORTS.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentESCORTS.NS demonstrates superior asset utilization.
Valuation Score
ModerateESCORTS.NS shows balanced valuation metrics.
Growth Score
ModerateESCORTS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentESCORTS.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateESCORTS.NS maintains healthy but balanced margins.
Key Financial Metrics
Is ESCORTS.NS Expensive or Cheap?
P/E Ratio
ESCORTS.NS trades at 16.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ESCORTS.NS's PEG of 5.36 indicates potential overvaluation.
Price to Book
The market values Escorts Kubota Limited at 3.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.66 times EBITDA. This signals the market has high growth expectations.
How Well Does ESCORTS.NS Make Money?
Net Profit Margin
For every $100 in sales, Escorts Kubota Limited keeps $21.71 as profit after all expenses.
Operating Margin
Core operations generate 13.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.54 in profit for every $100 of shareholder equity.
ROA
Escorts Kubota Limited generates $15.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Escorts Kubota Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Escorts Kubota 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
ESCORTS.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ESCORTS.NS Stacks Against Its Sector Peers
| Metric | ESCORTS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.57 | 26.71 | Better (Cheaper) |
| ROE | 22.54% | 1311.00% | Weak |
| Net Margin | 21.71% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 3.67 | 10.53 | Strong Liquidity |
| ROA | 15.88% | -1537638.00% (disorted) | Strong |
ESCORTS.NS outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Escorts Kubota Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
85.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-12.79%
Industry Style: Cyclical, Value, Infrastructure
Declining