Glenmark Pharmaceuticals Limited Fundamental Analysis
Glenmark Pharmaceuticals Limited Fundamental Analysis
Glenmark Pharmaceuticals Limited (GLENMARK.NS) shows weak financial fundamentals with a PE ratio of 45.16, profit margin of 8.02%, and ROE of 14.41%. The company generates $169.8B 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 79.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GLENMARK.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakGLENMARK.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateGLENMARK.NS shows balanced valuation metrics.
Growth Score
ModerateGLENMARK.NS shows steady but slowing expansion.
Financial Health Score
ExcellentGLENMARK.NS maintains a strong and stable balance sheet.
Profitability Score
WeakGLENMARK.NS struggles to sustain strong margins.
Key Financial Metrics
Is GLENMARK.NS Expensive or Cheap?
P/E Ratio
GLENMARK.NS trades at 45.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GLENMARK.NS's PEG of 1.50 indicates fair valuation.
Price to Book
The market values Glenmark Pharmaceuticals Limited at 5.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 22.44 times EBITDA. This signals the market has high growth expectations.
How Well Does GLENMARK.NS Make Money?
Net Profit Margin
For every $100 in sales, Glenmark Pharmaceuticals Limited keeps $8.02 as profit after all expenses.
Operating Margin
Core operations generate 20.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.41 in profit for every $100 of shareholder equity.
ROA
Glenmark Pharmaceuticals Limited generates $6.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Glenmark Pharmaceuticals Limited produces operating cash flow of $28.35B, showing steady but balanced cash generation.
Free Cash Flow
Glenmark Pharmaceuticals Limited generates strong free cash flow of $23.35B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $82.75 in free cash annually.
FCF Yield
GLENMARK.NS converts 3.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How GLENMARK.NS Stacks Against Its Sector Peers
| Metric | GLENMARK.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.16 | 33.92 | Worse (Expensive) |
| ROE | 14.41% | 393.00% | Weak |
| Net Margin | 8.02% | -41456.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.77 | 4.57 | Neutral |
| ROA | 6.84% | -293.00% (disorted) | Weak |
GLENMARK.NS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Glenmark Pharmaceuticals 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: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation