NIIT Learning Systems Limited
NIIT Learning Systems Limited Fundamental Analysis
NIIT Learning Systems Limited (NIITMTS.NS) shows moderate financial fundamentals with a PE ratio of 18.21, profit margin of 11.81%, and ROE of 18.13%. The company generates $18.6B in annual revenue with moderate year-over-year growth of 6.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.5/100 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 NIITMTS.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakNIITMTS.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateNIITMTS.NS shows balanced valuation metrics.
Growth Score
ModerateNIITMTS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentNIITMTS.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateNIITMTS.NS maintains healthy but balanced margins.
Key Financial Metrics
Is NIITMTS.NS Expensive or Cheap?
P/E Ratio
NIITMTS.NS trades at 18.21 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NIITMTS.NS's PEG of 3.14 indicates potential overvaluation.
Price to Book
The market values NIIT Learning Systems Limited at 2.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.09 times EBITDA. This signals the market has high growth expectations.
How Well Does NIITMTS.NS Make Money?
Net Profit Margin
For every $100 in sales, NIIT Learning Systems Limited keeps $11.81 as profit after all expenses.
Operating Margin
Core operations generate 15.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.13 in profit for every $100 of shareholder equity.
ROA
NIIT Learning Systems Limited generates $8.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NIIT Learning Systems Limited generates limited operating cash flow of $1.09B, signaling weaker underlying cash strength.
Free Cash Flow
NIIT Learning Systems Limited produces free cash flow of $897.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.55 in free cash annually.
FCF Yield
NIITMTS.NS converts 2.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How NIITMTS.NS Stacks Against Its Sector Peers
| Metric | NIITMTS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.21 | 22.35 | Better (Cheaper) |
| ROE | 18.13% | 1280.00% | Weak |
| Net Margin | 11.81% | -5505.00% (disorted) | Strong |
| Debt/Equity | 0.19 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 1.84 | 2.43 | Neutral |
| ROA | 8.54% | -199583.00% (disorted) | Weak |
NIITMTS.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 NIIT Learning Systems Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3199.57%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
518.39%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
5939.08%
Industry Style: Defensive, Dividend, Low Volatility
High Growth