Life Insurance Corporation of India Fundamental Analysis (BSE: LICI.BO)
Life Insurance Corporation of India Fundamental Analysis (BSE: LICI.BO)
Life Insurance Corporation of India (BSE: LICI.BO) shows moderate financial fundamentals with a PE ratio of 8.88, profit margin of 6.05%, and ROE of 17.84%. The company generates $9938.7B in annual revenue with moderate year-over-year growth of 4.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LICI.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakLICI.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLICI.BO trades at attractive valuation levels.
Growth Score
ModerateLICI.BO shows steady but slowing expansion.
Financial Health Score
ModerateLICI.BO shows balanced financial health with some risks.
Profitability Score
WeakLICI.BO struggles to sustain strong margins.
Key Financial Metrics
Is LICI.BO Expensive or Cheap?
P/E Ratio
LICI.BO trades at 8.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LICI.BO's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values Life Insurance Corporation of India at 3.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.02 times EBITDA. This is generally considered low.
How Well Does LICI.BO Make Money?
Net Profit Margin
For every $100 in sales, Life Insurance Corporation of India keeps $6.05 as profit after all expenses.
Operating Margin
Core operations generate 6.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.84 in profit for every $100 of shareholder equity.
ROA
Life Insurance Corporation of India generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Life Insurance Corporation of India generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Life Insurance Corporation of India 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
LICI.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
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
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How LICI.BO Stacks Against Its Sector Peers
| Metric | LICI.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.88 | 21.07 | Better (Cheaper) |
| ROE | 17.84% | 647.00% | Weak |
| Net Margin | 6.05% | -1594.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 912.43 | Weak Liquidity |
| ROA | 0.00% | -579.00% (disorted) | Weak |
LICI.BO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Life Insurance Corporation of India's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.97%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
1411.76%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-114.62%
Industry Style: Value, Dividend, Cyclical
Declining