Lemon Tree Hotels Limited
Lemon Tree Hotels Limited Fundamental Analysis
Lemon Tree Hotels Limited (LEMONTREE.NS) shows moderate financial fundamentals with a PE ratio of 38.92, profit margin of 15.64%, and ROE of 15.21%. The company generates $14.1B in annual revenue with strong year-over-year growth of 20.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.3/100 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 LEMONTREE.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakLEMONTREE.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateLEMONTREE.NS shows balanced valuation metrics.
Growth Score
ExcellentLEMONTREE.NS delivers strong and consistent growth momentum.
Financial Health Score
WeakLEMONTREE.NS carries high financial risk with limited liquidity.
Profitability Score
ExcellentLEMONTREE.NS achieves industry-leading margins.
Key Financial Metrics
Is LEMONTREE.NS Expensive or Cheap?
P/E Ratio
LEMONTREE.NS trades at 38.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LEMONTREE.NS's PEG of 0.39 indicates potential undervaluation.
Price to Book
The market values Lemon Tree Hotels Limited at 6.93 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.99 times EBITDA. This is generally considered low.
How Well Does LEMONTREE.NS Make Money?
Net Profit Margin
For every $100 in sales, Lemon Tree Hotels Limited keeps $15.64 as profit after all expenses.
Operating Margin
Core operations generate 53.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.21 in profit for every $100 of shareholder equity.
ROA
Lemon Tree Hotels Limited generates $5.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lemon Tree Hotels Limited produces operating cash flow of $2.34B, showing steady but balanced cash generation.
Free Cash Flow
Lemon Tree Hotels Limited generates strong free cash flow of $1.84B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.32 in free cash annually.
FCF Yield
LEMONTREE.NS converts 2.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How LEMONTREE.NS Stacks Against Its Sector Peers
| Metric | LEMONTREE.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.92 | 23.78 | Worse (Expensive) |
| ROE | 15.21% | 1098.00% | Weak |
| Net Margin | 15.64% | -626.00% (disorted) | Strong |
| Debt/Equity | 1.67 | 0.86 | Weak (High Leverage) |
| Current Ratio | 0.90 | 2.64 | Weak Liquidity |
| ROA | 5.35% | -8081.00% (disorted) | Weak |
LEMONTREE.NS outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lemon Tree Hotels Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.42%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
2153.81%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
153.20%
Industry Style: Cyclical, Growth, Discretionary
High Growth