JSW Steel Limited
JSW Steel Limited Fundamental Analysis
JSW Steel Limited (JSWSTEEL.NS) shows weak financial fundamentals with a PE ratio of 36.37, profit margin of 4.16%, and ROE of 9.14%. The company generates $1791.9B in annual revenue with weak year-over-year growth of -3.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JSWSTEEL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakJSWSTEEL.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateJSWSTEEL.NS shows balanced valuation metrics.
Growth Score
WeakJSWSTEEL.NS faces weak or negative growth trends.
Financial Health Score
ModerateJSWSTEEL.NS shows balanced financial health with some risks.
Profitability Score
WeakJSWSTEEL.NS struggles to sustain strong margins.
Key Financial Metrics
Is JSWSTEEL.NS Expensive or Cheap?
P/E Ratio
JSWSTEEL.NS trades at 36.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, JSWSTEEL.NS's PEG of 1.54 indicates fair valuation.
Price to Book
The market values JSW Steel Limited at 3.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.63 times EBITDA. This is generally considered low.
How Well Does JSWSTEEL.NS Make Money?
Net Profit Margin
For every $100 in sales, JSW Steel Limited keeps $4.16 as profit after all expenses.
Operating Margin
Core operations generate 28.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.14 in profit for every $100 of shareholder equity.
ROA
JSW Steel Limited generates $2.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
JSW Steel Limited generates limited operating cash flow of $119.97B, signaling weaker underlying cash strength.
Free Cash Flow
JSW Steel Limited generates weak or negative free cash flow of $51.59B, restricting financial flexibility.
FCF Per Share
Each share generates $21.12 in free cash annually.
FCF Yield
JSWSTEEL.NS converts 1.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How JSWSTEEL.NS Stacks Against Its Sector Peers
| Metric | JSWSTEEL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.37 | 23.53 | Worse (Expensive) |
| ROE | 9.14% | 873.00% | Weak |
| Net Margin | 4.16% | -102723.00% (disorted) | Weak |
| Debt/Equity | 1.22 | 0.51 | Weak (High Leverage) |
| Current Ratio | 1.09 | 5.06 | Neutral |
| ROA | 2.97% | -6387.00% (disorted) | Weak |
JSWSTEEL.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews JSW Steel Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
128.92%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-14.10%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
61.50%
Industry Style: Cyclical, Commodity, Value
High Growth