Sigma Solve Limited
Sigma Solve Limited Fundamental Analysis
Sigma Solve Limited (SIGMA.NS) shows strong financial fundamentals with a PE ratio of 16.59, profit margin of 24.97%, and ROE of 40.14%. The company generates $1.0B in annual revenue with strong year-over-year growth of 17.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.3/100 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 SIGMA.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSIGMA.NS demonstrates superior asset utilization.
Valuation Score
ExcellentSIGMA.NS trades at attractive valuation levels.
Growth Score
ExcellentSIGMA.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSIGMA.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentSIGMA.NS achieves industry-leading margins.
Key Financial Metrics
Is SIGMA.NS Expensive or Cheap?
P/E Ratio
SIGMA.NS trades at 16.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SIGMA.NS's PEG of 0.67 indicates potential undervaluation.
Price to Book
The market values Sigma Solve Limited at 5.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.93 times EBITDA. This signals the market has high growth expectations.
How Well Does SIGMA.NS Make Money?
Net Profit Margin
For every $100 in sales, Sigma Solve Limited keeps $24.97 as profit after all expenses.
Operating Margin
Core operations generate 28.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $40.14 in profit for every $100 of shareholder equity.
ROA
Sigma Solve Limited generates $26.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sigma Solve Limited produces operating cash flow of $167.97M, showing steady but balanced cash generation.
Free Cash Flow
Sigma Solve Limited generates strong free cash flow of $166.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.62 in free cash annually.
FCF Yield
SIGMA.NS converts 4.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How SIGMA.NS Stacks Against Its Sector Peers
| Metric | SIGMA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.59 | 36.62 | Better (Cheaper) |
| ROE | 40.14% | 1000.00% | Weak |
| Net Margin | 24.97% | 5890821264.00% | Weak |
| Debt/Equity | 0.03 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 5.24 | 5.02 | Strong Liquidity |
| ROA | 26.76% | -294176.00% (disorted) | Strong |
SIGMA.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sigma Solve Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
367.71%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
733.90%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
3514.18%
Industry Style: Growth, Innovation, High Beta
High Growth