Panama Petrochem Limited Fundamental Analysis
Panama Petrochem Limited (PANAMAPET.NS) shows moderate financial fundamentals with a PE ratio of 10.02, profit margin of 6.93%, and ROE of 15.98%. The company generates $30.6B in annual revenue with strong year-over-year growth of 18.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.3/100 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 PANAMAPET.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPANAMAPET.NS demonstrates superior asset utilization.
Valuation Score
ExcellentPANAMAPET.NS trades at attractive valuation levels.
Growth Score
ModeratePANAMAPET.NS shows steady but slowing expansion.
Financial Health Score
ExcellentPANAMAPET.NS maintains a strong and stable balance sheet.
Profitability Score
ModeratePANAMAPET.NS maintains healthy but balanced margins.
Key Financial Metrics
Is PANAMAPET.NS Expensive or Cheap?
P/E Ratio
PANAMAPET.NS trades at 10.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PANAMAPET.NS's PEG of 0.74 indicates potential undervaluation.
Price to Book
The market values Panama Petrochem Limited at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.45 times EBITDA. This is generally considered low.
How Well Does PANAMAPET.NS Make Money?
Net Profit Margin
For every $100 in sales, Panama Petrochem Limited keeps $6.93 as profit after all expenses.
Operating Margin
Core operations generate 8.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.98 in profit for every $100 of shareholder equity.
ROA
Panama Petrochem Limited generates $11.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Panama Petrochem Limited generates limited operating cash flow of $595.60M, signaling weaker underlying cash strength.
Free Cash Flow
Panama Petrochem Limited generates weak or negative free cash flow of $295.80M, restricting financial flexibility.
FCF Per Share
Each share generates $4.89 in free cash annually.
FCF Yield
PANAMAPET.NS converts 1.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How PANAMAPET.NS Stacks Against Its Sector Peers
| Metric | PANAMAPET.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.02 | 21.13 | Better (Cheaper) |
| ROE | 15.98% | 1000.00% | Weak |
| Net Margin | 6.93% | -59340.00% (disorted) | Weak |
| Debt/Equity | 0.08 | -0.46 (disorted) | Distorted |
| Current Ratio | 3.69 | 4.95 | Strong Liquidity |
| ROA | 11.08% | -2147.00% (disorted) | Strong |
PANAMAPET.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Panama Petrochem Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
178.55%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
549.98%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-9.32%
Industry Style: Cyclical, Value, Commodity
Declining