Oil and Natural Gas Corporation Limited
Oil and Natural Gas Corporation Limited Fundamental Analysis
Oil and Natural Gas Corporation Limited (ONGC.NS) shows moderate financial fundamentals with a PE ratio of 9.20, profit margin of 5.75%, and ROE of 10.36%. The company generates $6589.3B in annual revenue with strong year-over-year growth of 10.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ONGC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakONGC.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateONGC.NS shows balanced valuation metrics.
Growth Score
ModerateONGC.NS shows steady but slowing expansion.
Financial Health Score
ModerateONGC.NS shows balanced financial health with some risks.
Profitability Score
WeakONGC.NS struggles to sustain strong margins.
Key Financial Metrics
Is ONGC.NS Expensive or Cheap?
P/E Ratio
ONGC.NS trades at 9.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ONGC.NS's PEG of 2.41 indicates potential overvaluation.
Price to Book
The market values Oil and Natural Gas Corporation Limited at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.88 times EBITDA. This is generally considered low.
How Well Does ONGC.NS Make Money?
Net Profit Margin
For every $100 in sales, Oil and Natural Gas Corporation Limited keeps $5.75 as profit after all expenses.
Operating Margin
Core operations generate 8.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.36 in profit for every $100 of shareholder equity.
ROA
Oil and Natural Gas Corporation Limited generates $4.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oil and Natural Gas Corporation Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Oil and Natural Gas Corporation 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
ONGC.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ONGC.NS Stacks Against Its Sector Peers
| Metric | ONGC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.20 | 19.94 | Better (Cheaper) |
| ROE | 10.36% | 987.00% | Weak |
| Net Margin | 5.75% | -42983.00% (disorted) | Weak |
| Debt/Equity | 0.48 | -0.60 (disorted) | Distorted |
| Current Ratio | 0.87 | 4.67 | Weak Liquidity |
| ROA | 4.85% | -11498250.00% (disorted) | Weak |
ONGC.NS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oil and Natural Gas Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.12%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
235.31%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
28.72%
Industry Style: Cyclical, Value, Commodity
High Growth