The Federal Bank Limited Fundamental Analysis (NSE: FEDERALBNK.NS)
The Federal Bank Limited Fundamental Analysis (NSE: FEDERALBNK.NS)
The Federal Bank Limited (NSE: FEDERALBNK.NS) shows moderate financial fundamentals with a PE ratio of 18.65, profit margin of 13.42%, and ROE of 12.57%. The company generates $348.8B in annual revenue with strong year-over-year growth of 19.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FEDERALBNK.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakFEDERALBNK.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFEDERALBNK.NS trades at attractive valuation levels.
Growth Score
ModerateFEDERALBNK.NS shows steady but slowing expansion.
Financial Health Score
ModerateFEDERALBNK.NS shows balanced financial health with some risks.
Profitability Score
WeakFEDERALBNK.NS struggles to sustain strong margins.
Key Financial Metrics
Is FEDERALBNK.NS Expensive or Cheap?
P/E Ratio
FEDERALBNK.NS trades at 18.65 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FEDERALBNK.NS's PEG of 1.24 indicates fair valuation.
Price to Book
The market values The Federal Bank Limited at 2.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.80 times EBITDA. This signals the market has high growth expectations.
How Well Does FEDERALBNK.NS Make Money?
Net Profit Margin
For every $100 in sales, The Federal Bank Limited keeps $13.42 as profit after all expenses.
Operating Margin
Core operations generate 18.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.57 in profit for every $100 of shareholder equity.
ROA
The Federal Bank Limited generates $1.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Federal Bank Limited generates limited operating cash flow of $-23.63B, signaling weaker underlying cash strength.
Free Cash Flow
The Federal Bank Limited generates weak or negative free cash flow of $-24.98B, restricting financial flexibility.
FCF Per Share
Each share generates $-10.13 in free cash annually.
FCF Yield
FEDERALBNK.NS converts -2.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How FEDERALBNK.NS Stacks Against Its Sector Peers
| Metric | FEDERALBNK.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.65 | 21.06 | Better (Cheaper) |
| ROE | 12.57% | 651.00% | Weak |
| Net Margin | 13.42% | -599.00% (disorted) | Strong |
| Debt/Equity | 0.83 | 0.88 | Neutral |
| Current Ratio | 0.00 | 887.27 | Weak Liquidity |
| ROA | 1.16% | 6570.00% | Weak |
FEDERALBNK.NS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Federal Bank Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.86%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
111.47%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-578.74%
Industry Style: Value, Dividend, Cyclical
Declining