Safa Systems & Technologies Li Fundamental Analysis (BSE: SSTL.BO)
Safa Systems & Technologies Li Fundamental Analysis (BSE: SSTL.BO)
Safa Systems & Technologies Li (BSE: SSTL.BO) shows moderate financial fundamentals with a PE ratio of 10.63, profit margin of 1.10%, and ROE of 11.66%. The company generates $4.3B 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 22.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SSTL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakSSTL.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSSTL.BO trades at attractive valuation levels.
Growth Score
ModerateSSTL.BO shows steady but slowing expansion.
Financial Health Score
ModerateSSTL.BO shows balanced financial health with some risks.
Profitability Score
WeakSSTL.BO struggles to sustain strong margins.
Key Financial Metrics
Is SSTL.BO Expensive or Cheap?
P/E Ratio
SSTL.BO trades at 10.63 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SSTL.BO's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values Safa Systems & Technologies Li at 1.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.35 times EBITDA. This is generally considered low.
How Well Does SSTL.BO Make Money?
Net Profit Margin
For every $100 in sales, Safa Systems & Technologies Li keeps $1.10 as profit after all expenses.
Operating Margin
Core operations generate 1.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.66 in profit for every $100 of shareholder equity.
ROA
Safa Systems & Technologies Li generates $3.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Safa Systems & Technologies Li generates limited operating cash flow of $-119.85M, signaling weaker underlying cash strength.
Free Cash Flow
Safa Systems & Technologies Li generates weak or negative free cash flow of $-120.09M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.81 in free cash annually.
FCF Yield
SSTL.BO converts -24.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How SSTL.BO Stacks Against Its Sector Peers
| Metric | SSTL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.63 | 34.40 | Better (Cheaper) |
| ROE | 11.66% | 730.00% | Weak |
| Net Margin | 1.10% | -3110.00% (disorted) | Weak |
| Debt/Equity | 1.40 | 0.22 | Weak (High Leverage) |
| Current Ratio | 1.36 | 6.05 | Neutral |
| ROA | 3.73% | 254.00% | Weak |
SSTL.BO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Safa Systems & Technologies Li'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: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta