Indian Railway Finance Corporation Limited Fundamental Analysis (BSE: IRFC.BO)
Indian Railway Finance Corporation Limited Fundamental Analysis (BSE: IRFC.BO)
Indian Railway Finance Corporation Limited (BSE: IRFC.BO) shows moderate financial fundamentals with a PE ratio of 15.66, profit margin of 25.01%, and ROE of 12.71%. The company generates $287.5B in annual revenue with weak year-over-year growth of 2.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.5/100 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 IRFC.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakIRFC.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateIRFC.BO shows balanced valuation metrics.
Growth Score
WeakIRFC.BO faces weak or negative growth trends.
Financial Health Score
ModerateIRFC.BO shows balanced financial health with some risks.
Profitability Score
ModerateIRFC.BO maintains healthy but balanced margins.
Key Financial Metrics
Is IRFC.BO Expensive or Cheap?
P/E Ratio
IRFC.BO trades at 15.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IRFC.BO's PEG of 2.05 indicates potential overvaluation.
Price to Book
The market values Indian Railway Finance Corporation Limited at 1.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.56 times EBITDA. This signals the market has high growth expectations.
How Well Does IRFC.BO Make Money?
Net Profit Margin
For every $100 in sales, Indian Railway Finance Corporation Limited keeps $25.01 as profit after all expenses.
Operating Margin
Core operations generate 25.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.71 in profit for every $100 of shareholder equity.
ROA
Indian Railway Finance Corporation Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Indian Railway Finance Corporation Limited generates limited operating cash flow of $6.90B, signaling weaker underlying cash strength.
Free Cash Flow
Indian Railway Finance Corporation Limited generates weak or negative free cash flow of $6.77B, restricting financial flexibility.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
IRFC.BO converts 0.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
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
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How IRFC.BO Stacks Against Its Sector Peers
| Metric | IRFC.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.66 | 21.19 | Better (Cheaper) |
| ROE | 12.71% | 657.00% | Weak |
| Net Margin | 25.01% | -1592.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 910.00 | Weak Liquidity |
| ROA | 0.00% | 4466981.00% | Weak |
IRFC.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 Indian Railway Finance Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.46%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
46.56%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
109.44%
Industry Style: Value, Dividend, Cyclical
High Growth