Power Finance Corporation Limited Fundamental Analysis (NSE: PFC.NS)
Power Finance Corporation Limited Fundamental Analysis (NSE: PFC.NS)
Power Finance Corporation Limited (NSE: PFC.NS) shows strong financial fundamentals with a PE ratio of 4.74, profit margin of 23.13%, and ROE of 18.29%. The company generates $1126.2B in annual revenue with strong year-over-year growth of 16.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.7/100 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 PFC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakPFC.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPFC.NS trades at attractive valuation levels.
Growth Score
ExcellentPFC.NS delivers strong and consistent growth momentum.
Financial Health Score
ModeratePFC.NS shows balanced financial health with some risks.
Profitability Score
ExcellentPFC.NS achieves industry-leading margins.
Key Financial Metrics
Is PFC.NS Expensive or Cheap?
P/E Ratio
PFC.NS trades at 4.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PFC.NS's PEG of 0.67 indicates potential undervaluation.
Price to Book
The market values Power Finance Corporation Limited at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.17 times EBITDA. This is generally considered low.
How Well Does PFC.NS Make Money?
Net Profit Margin
For every $100 in sales, Power Finance Corporation Limited keeps $23.13 as profit after all expenses.
Operating Margin
Core operations generate 37.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.29 in profit for every $100 of shareholder equity.
ROA
Power Finance Corporation Limited generates $2.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Power Finance Corporation Limited generates limited operating cash flow of $59.72B, signaling weaker underlying cash strength.
Free Cash Flow
Power Finance Corporation Limited produces free cash flow of $57.10B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $17.30 in free cash annually.
FCF Yield
PFC.NS converts 4.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How PFC.NS Stacks Against Its Sector Peers
| Metric | PFC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.74 | 21.19 | Better (Cheaper) |
| ROE | 18.29% | 657.00% | Weak |
| Net Margin | 23.13% | -1592.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.25 | 910.00 | Weak Liquidity |
| ROA | 2.09% | 4466981.00% | Weak |
PFC.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 Power Finance Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.76%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
222.82%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-118.93%
Industry Style: Value, Dividend, Cyclical
Declining