Patel Engineering Limited Fundamental Analysis
Patel Engineering Limited (PATELENG.BO) shows weak financial fundamentals with a PE ratio of 10.71, profit margin of 5.17%, and ROE of 6.62%. The company generates $49.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PATELENG.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakPATELENG.BO struggles to generate sufficient returns from assets.
Valuation Score
ModeratePATELENG.BO shows balanced valuation metrics.
Growth Score
ModeratePATELENG.BO shows steady but slowing expansion.
Financial Health Score
ExcellentPATELENG.BO maintains a strong and stable balance sheet.
Profitability Score
WeakPATELENG.BO struggles to sustain strong margins.
Key Financial Metrics
Is PATELENG.BO Expensive or Cheap?
P/E Ratio
PATELENG.BO trades at 10.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PATELENG.BO's PEG of 3.10 indicates potential overvaluation.
Price to Book
The market values Patel Engineering Limited at 0.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.17 times EBITDA. This is generally considered low.
How Well Does PATELENG.BO Make Money?
Net Profit Margin
For every $100 in sales, Patel Engineering Limited keeps $5.17 as profit after all expenses.
Operating Margin
Core operations generate 11.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.62 in profit for every $100 of shareholder equity.
ROA
Patel Engineering Limited generates $2.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Patel Engineering Limited generates limited operating cash flow of $3.67B, signaling weaker underlying cash strength.
Free Cash Flow
Patel Engineering Limited produces free cash flow of $3.21B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.36 in free cash annually.
FCF Yield
PATELENG.BO converts 10.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How PATELENG.BO Stacks Against Its Sector Peers
| Metric | PATELENG.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.71 | 34.45 | Better (Cheaper) |
| ROE | 6.62% | 1169.00% | Weak |
| Net Margin | 5.17% | -29218.00% (disorted) | Weak |
| Debt/Equity | 0.27 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 1.45 | 25.49 | Neutral |
| ROA | 2.77% | -1353142.00% (disorted) | Weak |
PATELENG.BO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Patel Engineering Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure