Newgen Software Technologies Limited Fundamental Analysis (NSE: NEWGEN.NS)
Newgen Software Technologies Limited Fundamental Analysis (NSE: NEWGEN.NS)
Newgen Software Technologies Limited (NSE: NEWGEN.NS) shows moderate financial fundamentals with a PE ratio of 23.46, profit margin of 19.48%, and ROE of 18.62%. The company generates $16.1B in annual revenue with strong year-over-year growth of 19.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NEWGEN.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakNEWGEN.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNEWGEN.NS trades at attractive valuation levels.
Growth Score
ExcellentNEWGEN.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateNEWGEN.NS shows balanced financial health with some risks.
Profitability Score
ExcellentNEWGEN.NS achieves industry-leading margins.
Key Financial Metrics
Is NEWGEN.NS Expensive or Cheap?
P/E Ratio
NEWGEN.NS trades at 23.46 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NEWGEN.NS's PEG of -13.64 indicates potential undervaluation.
Price to Book
The market values Newgen Software Technologies Limited at 4.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.50 times EBITDA. This signals the market has high growth expectations.
How Well Does NEWGEN.NS Make Money?
Net Profit Margin
For every $100 in sales, Newgen Software Technologies Limited keeps $19.48 as profit after all expenses.
Operating Margin
Core operations generate 23.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.62 in profit for every $100 of shareholder equity.
ROA
Newgen Software Technologies Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Newgen Software Technologies Limited generates limited operating cash flow of $893.68M, signaling weaker underlying cash strength.
Free Cash Flow
Newgen Software Technologies Limited produces free cash flow of $868.03M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.15 in free cash annually.
FCF Yield
NEWGEN.NS converts 1.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-13.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.58
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
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How NEWGEN.NS Stacks Against Its Sector Peers
| Metric | NEWGEN.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.46 | 35.21 | Better (Cheaper) |
| ROE | 18.62% | 747.00% | Weak |
| Net Margin | 19.48% | -3061.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.66 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 6.21 | Weak Liquidity |
| ROA | 0.00% | 174.00% | Weak |
NEWGEN.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Newgen Software Technologies Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
117.64%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
319.19%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
130.89%
Industry Style: Growth, Innovation, High Beta
High Growth