Prostarm Info Systems Ltd.
Prostarm Info Systems Ltd. Fundamental Analysis
Prostarm Info Systems Ltd. (PROSTARM.NS) shows moderate financial fundamentals with a PE ratio of 28.19, profit margin of 8.75%, and ROE of 20.07%. The company generates $3.6B 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 67.7/100 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 PROSTARM.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakPROSTARM.NS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePROSTARM.NS shows balanced valuation metrics.
Growth Score
ModeratePROSTARM.NS shows steady but slowing expansion.
Financial Health Score
ExcellentPROSTARM.NS maintains a strong and stable balance sheet.
Profitability Score
WeakPROSTARM.NS struggles to sustain strong margins.
Key Financial Metrics
Is PROSTARM.NS Expensive or Cheap?
P/E Ratio
PROSTARM.NS trades at 28.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PROSTARM.NS's PEG of 0.38 indicates potential undervaluation.
Price to Book
The market values Prostarm Info Systems Ltd. at 3.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 397.07 times EBITDA. This signals the market has high growth expectations.
How Well Does PROSTARM.NS Make Money?
Net Profit Margin
For every $100 in sales, Prostarm Info Systems Ltd. keeps $8.75 as profit after all expenses.
Operating Margin
Core operations generate 12.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.07 in profit for every $100 of shareholder equity.
ROA
Prostarm Info Systems Ltd. generates $9.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Prostarm Info Systems Ltd. generates limited operating cash flow of $-73.02M, signaling weaker underlying cash strength.
Free Cash Flow
Prostarm Info Systems Ltd. generates weak or negative free cash flow of $-71.10M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.21 in free cash annually.
FCF Yield
PROSTARM.NS converts -0.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How PROSTARM.NS Stacks Against Its Sector Peers
| Metric | PROSTARM.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.19 | 26.71 | Neutral |
| ROE | 20.07% | 1311.00% | Weak |
| Net Margin | 8.75% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 3.58 | 10.53 | Strong Liquidity |
| ROA | 9.41% | -1537638.00% (disorted) | Weak |
PROSTARM.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Prostarm Info Systems Ltd.'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