Relaxo Footwears Limited Fundamental Analysis
Relaxo Footwears Limited Fundamental Analysis
Relaxo Footwears Limited (RELAXO.BO) shows weak financial fundamentals with a PE ratio of 50.55, profit margin of 6.63%, and ROE of 8.42%. The company generates $27.0B 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 64.8/100 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 RELAXO.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakRELAXO.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakRELAXO.BO trades at a premium to fair value.
Growth Score
ModerateRELAXO.BO shows steady but slowing expansion.
Financial Health Score
ExcellentRELAXO.BO maintains a strong and stable balance sheet.
Profitability Score
WeakRELAXO.BO struggles to sustain strong margins.
Key Financial Metrics
Is RELAXO.BO Expensive or Cheap?
P/E Ratio
RELAXO.BO trades at 50.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RELAXO.BO's PEG of 9.34 indicates potential overvaluation.
Price to Book
The market values Relaxo Footwears Limited at 4.11 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.98 times EBITDA. This signals the market has high growth expectations.
How Well Does RELAXO.BO Make Money?
Net Profit Margin
For every $100 in sales, Relaxo Footwears Limited keeps $6.63 as profit after all expenses.
Operating Margin
Core operations generate 8.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.42 in profit for every $100 of shareholder equity.
ROA
Relaxo Footwears Limited generates $6.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Relaxo Footwears Limited generates limited operating cash flow of $2.36B, signaling weaker underlying cash strength.
Free Cash Flow
Relaxo Footwears Limited produces free cash flow of $1.58B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.33 in free cash annually.
FCF Yield
RELAXO.BO converts 1.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How RELAXO.BO Stacks Against Its Sector Peers
| Metric | RELAXO.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.55 | 27.80 | Worse (Expensive) |
| ROE | 8.42% | 1298.00% | Weak |
| Net Margin | 6.63% | -3346.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 2.33 | 2.47 | Strong Liquidity |
| ROA | 6.08% | 282.00% | Weak |
RELAXO.BO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Relaxo Footwears 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, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary