Kitex Garments Limited
Kitex Garments Limited Fundamental Analysis
Kitex Garments Limited (KITEX.BO) shows weak financial fundamentals with a PE ratio of 90.40, profit margin of 5.35%, and ROE of 3.97%. The company generates $8.0B in annual revenue with strong year-over-year growth of 70.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KITEX.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakKITEX.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateKITEX.BO shows balanced valuation metrics.
Growth Score
ModerateKITEX.BO shows steady but slowing expansion.
Financial Health Score
ModerateKITEX.BO shows balanced financial health with some risks.
Profitability Score
WeakKITEX.BO struggles to sustain strong margins.
Key Financial Metrics
Is KITEX.BO Expensive or Cheap?
P/E Ratio
KITEX.BO trades at 90.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KITEX.BO's PEG of -1.67 indicates potential undervaluation.
Price to Book
The market values Kitex Garments Limited at 3.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.55 times EBITDA. This signals the market has high growth expectations.
How Well Does KITEX.BO Make Money?
Net Profit Margin
For every $100 in sales, Kitex Garments Limited keeps $5.35 as profit after all expenses.
Operating Margin
Core operations generate 6.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.97 in profit for every $100 of shareholder equity.
ROA
Kitex Garments Limited generates $1.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kitex Garments Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Kitex Garments Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
KITEX.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
90.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How KITEX.BO Stacks Against Its Sector Peers
| Metric | KITEX.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 90.40 | 24.85 | Worse (Expensive) |
| ROE | 3.97% | 1165.00% | Weak |
| Net Margin | 5.35% | 749.00% | Weak |
| Debt/Equity | 1.14 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.65 | 9.23 | Neutral |
| ROA | 1.56% | 1271.00% | Weak |
KITEX.BO 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 Kitex Garments Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-52.84%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-55.27%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-72.04%
Industry Style: Cyclical, Growth, Discretionary
Declining