Persistent Systems Limited
Persistent Systems Limited Fundamental Analysis
Persistent Systems Limited (PERSISTENT.BO) shows moderate financial fundamentals with a PE ratio of 40.83, profit margin of 12.43%, and ROE of 24.67%. The company generates $139.6B in annual revenue with strong year-over-year growth of 31.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 93.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze PERSISTENT.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPERSISTENT.BO demonstrates superior asset utilization.
Valuation Score
WeakPERSISTENT.BO trades at a premium to fair value.
Growth Score
ExcellentPERSISTENT.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPERSISTENT.BO maintains a strong and stable balance sheet.
Profitability Score
ModeratePERSISTENT.BO maintains healthy but balanced margins.
Key Financial Metrics
Is PERSISTENT.BO Expensive or Cheap?
P/E Ratio
PERSISTENT.BO trades at 40.83 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PERSISTENT.BO's PEG of 11.33 indicates potential overvaluation.
Price to Book
The market values Persistent Systems Limited at 9.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.66 times EBITDA. This signals the market has high growth expectations.
How Well Does PERSISTENT.BO Make Money?
Net Profit Margin
For every $100 in sales, Persistent Systems Limited keeps $12.43 as profit after all expenses.
Operating Margin
Core operations generate 19.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.67 in profit for every $100 of shareholder equity.
ROA
Persistent Systems Limited generates $15.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Persistent Systems Limited produces operating cash flow of $17.97B, showing steady but balanced cash generation.
Free Cash Flow
Persistent Systems Limited generates strong free cash flow of $17.94B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $114.72 in free cash annually.
FCF Yield
PERSISTENT.BO converts 2.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How PERSISTENT.BO Stacks Against Its Sector Peers
| Metric | PERSISTENT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.83 | 34.49 | Worse (Expensive) |
| ROE | 24.67% | 1124.00% | Weak |
| Net Margin | 12.43% | -133673.00% (disorted) | Strong |
| Debt/Equity | 0.09 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 2.60 | 5.81 | Strong Liquidity |
| ROA | 15.88% | -308769.00% (disorted) | Strong |
PERSISTENT.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Persistent Systems Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
230.95%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
306.71%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
225.26%
Industry Style: Growth, Innovation, High Beta
High Growth