Nelco Limited
Nelco Limited Fundamental Analysis
Nelco Limited (NELCO.NS) shows weak financial fundamentals with a PE ratio of 460.32, profit margin of 1.08%, and ROE of 2.59%. The company generates $3.1B in annual revenue with weak year-over-year growth of -4.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NELCO.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakNELCO.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateNELCO.NS shows balanced valuation metrics.
Growth Score
WeakNELCO.NS faces weak or negative growth trends.
Financial Health Score
ModerateNELCO.NS shows balanced financial health with some risks.
Profitability Score
ModerateNELCO.NS maintains healthy but balanced margins.
Key Financial Metrics
Is NELCO.NS Expensive or Cheap?
P/E Ratio
NELCO.NS trades at 460.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NELCO.NS's PEG of -2.65 indicates potential undervaluation.
Price to Book
The market values Nelco Limited at 11.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 54.19 times EBITDA. This signals the market has high growth expectations.
How Well Does NELCO.NS Make Money?
Net Profit Margin
For every $100 in sales, Nelco Limited keeps $1.08 as profit after all expenses.
Operating Margin
Core operations generate 2.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.59 in profit for every $100 of shareholder equity.
ROA
Nelco Limited generates $0.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nelco Limited generates limited operating cash flow of $111.84M, signaling weaker underlying cash strength.
Free Cash Flow
Nelco Limited generates weak or negative free cash flow of $20.70M, restricting financial flexibility.
FCF Per Share
Each share generates $0.91 in free cash annually.
FCF Yield
NELCO.NS converts 0.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
460.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.009
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How NELCO.NS Stacks Against Its Sector Peers
| Metric | NELCO.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 460.32 | 36.74 | Worse (Expensive) |
| ROE | 2.59% | 968.00% | Weak |
| Net Margin | 1.08% | 5945062585.00% | Weak |
| Debt/Equity | 0.57 | 0.34 | Weak (High Leverage) |
| Current Ratio | 0.88 | 4.94 | Weak Liquidity |
| ROA | 0.96% | -296476.00% (disorted) | Weak |
NELCO.NS 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 Nelco Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.76%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-33.67%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-40.68%
Industry Style: Growth, Innovation, High Beta
Declining