Firstsource Solutions Limited Fundamental Analysis (BSE: FSL.BO)
Firstsource Solutions Limited Fundamental Analysis (BSE: FSL.BO)
Firstsource Solutions Limited (BSE: FSL.BO) shows weak financial fundamentals with a PE ratio of 30.60, profit margin of 7.04%, and ROE of 15.49%. The company generates $95.8B 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 66.3/100 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 FSL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakFSL.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakFSL.BO trades at a premium to fair value.
Growth Score
ModerateFSL.BO shows steady but slowing expansion.
Financial Health Score
ModerateFSL.BO shows balanced financial health with some risks.
Profitability Score
ModerateFSL.BO maintains healthy but balanced margins.
Key Financial Metrics
Is FSL.BO Expensive or Cheap?
P/E Ratio
FSL.BO trades at 30.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FSL.BO's PEG of 2.30 indicates potential overvaluation.
Price to Book
The market values Firstsource Solutions Limited at 4.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.31 times EBITDA. This signals the market has high growth expectations.
How Well Does FSL.BO Make Money?
Net Profit Margin
For every $100 in sales, Firstsource Solutions Limited keeps $7.04 as profit after all expenses.
Operating Margin
Core operations generate 11.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.49 in profit for every $100 of shareholder equity.
ROA
Firstsource Solutions Limited generates $7.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Firstsource Solutions Limited produces operating cash flow of $10.38B, showing steady but balanced cash generation.
Free Cash Flow
Firstsource Solutions Limited produces free cash flow of $8.43B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $12.21 in free cash annually.
FCF Yield
FSL.BO converts 4.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How FSL.BO Stacks Against Its Sector Peers
| Metric | FSL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.60 | 35.05 | Better (Cheaper) |
| ROE | 15.49% | 699.00% | Weak |
| Net Margin | 7.04% | -137495.00% (disorted) | Weak |
| Debt/Equity | 0.67 | 0.26 | Weak (High Leverage) |
| Current Ratio | 0.79 | 3.42 | Weak Liquidity |
| ROA | 7.24% | 249.00% | Weak |
FSL.BO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Firstsource Solutions 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