Jio Financial Services Limited
Jio Financial Services Limited Fundamental Analysis
Jio Financial Services Limited (JIOFIN.NS) shows weak financial fundamentals with a PE ratio of 95.21, profit margin of 44.06%, and ROE of 1.21%. The company generates $35.6B in annual revenue with weak year-over-year growth of -1.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JIOFIN.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakJIOFIN.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateJIOFIN.NS shows balanced valuation metrics.
Growth Score
WeakJIOFIN.NS faces weak or negative growth trends.
Financial Health Score
ModerateJIOFIN.NS shows balanced financial health with some risks.
Profitability Score
ModerateJIOFIN.NS maintains healthy but balanced margins.
Key Financial Metrics
Is JIOFIN.NS Expensive or Cheap?
P/E Ratio
JIOFIN.NS trades at 95.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, JIOFIN.NS's PEG of -34.28 indicates potential undervaluation.
Price to Book
The market values Jio Financial Services Limited at 1.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 67.47 times EBITDA. This signals the market has high growth expectations.
How Well Does JIOFIN.NS Make Money?
Net Profit Margin
For every $100 in sales, Jio Financial Services Limited keeps $44.06 as profit after all expenses.
Operating Margin
Core operations generate 46.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.21 in profit for every $100 of shareholder equity.
ROA
Jio Financial Services Limited generates $0.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Jio Financial Services Limited generates limited operating cash flow of $-46.32B, signaling weaker underlying cash strength.
Free Cash Flow
Jio Financial Services Limited generates weak or negative free cash flow of $-46.81B, restricting financial flexibility.
FCF Per Share
Each share generates $-7.37 in free cash annually.
FCF Yield
JIOFIN.NS converts -3.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
95.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-34.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
42.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How JIOFIN.NS Stacks Against Its Sector Peers
| Metric | JIOFIN.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 95.21 | 18.99 | Worse (Expensive) |
| ROE | 1.21% | 821.00% | Weak |
| Net Margin | 44.06% | 1914.00% | Weak |
| Debt/Equity | 0.16 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 657.31 | Weak Liquidity |
| ROA | 0.95% | -25084.00% (disorted) | Weak |
JIOFIN.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 Jio Financial Services Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
414.16%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
601.81%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-27269.75%
Industry Style: Value, Dividend, Cyclical
Declining