Punjab National Bank Fundamental Analysis (NSE: PNB.NS)
Punjab National Bank (NSE: PNB.NS) shows strong financial fundamentals with a PE ratio of 5.75, profit margin of 14.73%, and ROE of 14.79%. The company generates $1499.4B in annual revenue with strong year-over-year growth of 13.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -9.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PNB.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakPNB.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPNB.NS trades at attractive valuation levels.
Growth Score
ExcellentPNB.NS delivers strong and consistent growth momentum.
Financial Health Score
ModeratePNB.NS shows balanced financial health with some risks.
Profitability Score
WeakPNB.NS struggles to sustain strong margins.
Key Financial Metrics
Is PNB.NS Expensive or Cheap?
P/E Ratio
PNB.NS trades at 5.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PNB.NS's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values Punjab National Bank at 0.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.67 times EBITDA. This is generally considered low.
How Well Does PNB.NS Make Money?
Net Profit Margin
For every $100 in sales, Punjab National Bank keeps $14.73 as profit after all expenses.
Operating Margin
Core operations generate 18.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.79 in profit for every $100 of shareholder equity.
ROA
Punjab National Bank generates $1.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Punjab National Bank generates limited operating cash flow of $-471.94B, signaling weaker underlying cash strength.
Free Cash Flow
Punjab National Bank generates weak or negative free cash flow of $-478.60B, restricting financial flexibility.
FCF Per Share
Each share generates $-41.64 in free cash annually.
FCF Yield
PNB.NS converts -37.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How PNB.NS Stacks Against Its Sector Peers
| Metric | PNB.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.75 | 21.06 | Better (Cheaper) |
| ROE | 14.79% | 651.00% | Weak |
| Net Margin | 14.73% | -599.00% (disorted) | Strong |
| Debt/Equity | 0.67 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 0.09 | 887.27 | Weak Liquidity |
| ROA | 1.08% | 6570.00% | Weak |
PNB.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 Punjab National Bank's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.39%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
3437.26%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
245.38%
Industry Style: Value, Dividend, Cyclical
High Growth