Larsen & Toubro Limited
Larsen & Toubro Limited Fundamental Analysis
Larsen & Toubro Limited (LTOUF) shows moderate financial fundamentals with a PE ratio of 30.99, profit margin of 6.10%, and ROE of 16.65%. The company generates $2877.5B in annual revenue with strong year-over-year growth of 15.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.4/100 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 LTOUF's fundamental strength across five key dimensions:
Efficiency Score
WeakLTOUF struggles to generate sufficient returns from assets.
Valuation Score
ModerateLTOUF shows balanced valuation metrics.
Growth Score
ExcellentLTOUF delivers strong and consistent growth momentum.
Financial Health Score
ModerateLTOUF shows balanced financial health with some risks.
Profitability Score
WeakLTOUF struggles to sustain strong margins.
Key Financial Metrics
Is LTOUF Expensive or Cheap?
P/E Ratio
LTOUF trades at 30.99 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LTOUF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Larsen & Toubro Limited at 5.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.15 times EBITDA. This signals the market has high growth expectations.
How Well Does LTOUF Make Money?
Net Profit Margin
For every $100 in sales, Larsen & Toubro Limited keeps $6.10 as profit after all expenses.
Operating Margin
Core operations generate 8.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.65 in profit for every $100 of shareholder equity.
ROA
Larsen & Toubro Limited generates $3.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Larsen & Toubro Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Larsen & Toubro 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
LTOUF converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How LTOUF Stacks Against Its Sector Peers
| Metric | LTOUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.99 | 25.86 | Worse (Expensive) |
| ROE | 16.65% | 1270.00% | Weak |
| Net Margin | 6.10% | -33745.00% (disorted) | Weak |
| Debt/Equity | 1.15 | 0.74 | Weak (High Leverage) |
| Current Ratio | 1.25 | 10.46 | Neutral |
| ROA | 3.96% | -1496704.00% (disorted) | Weak |
LTOUF 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 Larsen & Toubro Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.70%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
35.03%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
17.35%
Industry Style: Cyclical, Value, Infrastructure
High Growth