Muthoot Finance Limited
Muthoot Finance Limited Fundamental Analysis
Muthoot Finance Limited (MUTHOOTFIN.BO) shows strong financial fundamentals with a PE ratio of 12.63, profit margin of 33.78%, and ROE of 30.71%. The company generates $313.5B in annual revenue with strong year-over-year growth of 34.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -698.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MUTHOOTFIN.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakMUTHOOTFIN.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMUTHOOTFIN.BO trades at attractive valuation levels.
Growth Score
ExcellentMUTHOOTFIN.BO delivers strong and consistent growth momentum.
Financial Health Score
WeakMUTHOOTFIN.BO carries high financial risk with limited liquidity.
Profitability Score
ModerateMUTHOOTFIN.BO maintains healthy but balanced margins.
Key Financial Metrics
Is MUTHOOTFIN.BO Expensive or Cheap?
P/E Ratio
MUTHOOTFIN.BO trades at 12.63 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MUTHOOTFIN.BO's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Muthoot Finance Limited at 3.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.31 times EBITDA. This is generally considered low.
How Well Does MUTHOOTFIN.BO Make Money?
Net Profit Margin
For every $100 in sales, Muthoot Finance Limited keeps $33.78 as profit after all expenses.
Operating Margin
Core operations generate 46.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.71 in profit for every $100 of shareholder equity.
ROA
Muthoot Finance Limited generates $5.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Muthoot Finance Limited generates limited operating cash flow of $-201.00B, signaling weaker underlying cash strength.
Free Cash Flow
Muthoot Finance Limited generates weak or negative free cash flow of $-201.54B, restricting financial flexibility.
FCF Per Share
Each share generates $-502.00 in free cash annually.
FCF Yield
MUTHOOTFIN.BO converts -15.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MUTHOOTFIN.BO Stacks Against Its Sector Peers
| Metric | MUTHOOTFIN.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.63 | 19.08 | Better (Cheaper) |
| ROE | 30.71% | 799.00% | Weak |
| Net Margin | 33.78% | -7710.00% (disorted) | Strong |
| Debt/Equity | 3.86 | 2.40 | Weak (High Leverage) |
| Current Ratio | 0.00 | 560.55 | Weak Liquidity |
| ROA | 5.41% | -23972.00% (disorted) | Weak |
MUTHOOTFIN.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Muthoot Finance Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
108.68%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
69.66%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-429.83%
Industry Style: Value, Dividend, Cyclical
Declining