Essar Shipping Limited
Essar Shipping Limited Fundamental Analysis
Essar Shipping Limited (ESSARSHPNG.BO) shows moderate financial fundamentals with a PE ratio of -7.55, profit margin of 45.05%, and ROE of 2.67%. The company generates $-1.4B in annual revenue with weak year-over-year growth of -19.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ESSARSHPNG.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakESSARSHPNG.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentESSARSHPNG.BO trades at attractive valuation levels.
Growth Score
WeakESSARSHPNG.BO faces weak or negative growth trends.
Financial Health Score
ModerateESSARSHPNG.BO shows balanced financial health with some risks.
Profitability Score
ModerateESSARSHPNG.BO maintains healthy but balanced margins.
Key Financial Metrics
Is ESSARSHPNG.BO Expensive or Cheap?
P/E Ratio
ESSARSHPNG.BO trades at -7.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ESSARSHPNG.BO's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Essar Shipping Limited at -0.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -15.49 times EBITDA. This is generally considered low.
How Well Does ESSARSHPNG.BO Make Money?
Net Profit Margin
For every $100 in sales, Essar Shipping Limited keeps $45.05 as profit after all expenses.
Operating Margin
Core operations generate 26.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.67 in profit for every $100 of shareholder equity.
ROA
Essar Shipping Limited generates $-21.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Essar Shipping Limited generates limited operating cash flow of $61.00M, signaling weaker underlying cash strength.
Free Cash Flow
Essar Shipping Limited generates strong free cash flow of $-216.70M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $-1.05 in free cash annually.
FCF Yield
ESSARSHPNG.BO converts -4.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-7.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
-3.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.21
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ESSARSHPNG.BO Stacks Against Its Sector Peers
| Metric | ESSARSHPNG.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -7.55 | 25.81 | Better (Cheaper) |
| ROE | 2.67% | 1255.00% | Weak |
| Net Margin | 45.05% | -46754.00% (disorted) | Strong |
| Debt/Equity | -0.69 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 0.04 | 10.04 | Weak Liquidity |
| ROA | -21.43% | -1492804.00% (disorted) | Weak |
ESSARSHPNG.BO 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 Essar Shipping Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-99.23%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
139.29%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
151.48%
Industry Style: Cyclical, Value, Infrastructure
High Growth