Steel Strips Wheels Limited Fundamental Analysis (NSE: SSWL.NS)
Steel Strips Wheels Limited Fundamental Analysis (NSE: SSWL.NS)
Steel Strips Wheels Limited (NSE: SSWL.NS) shows weak financial fundamentals with a PE ratio of 29.03, profit margin of 4.71%, and ROE of 16.09%. The company generates $62.4B in annual revenue with weak year-over-year growth of 1.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SSWL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSSWL.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSSWL.NS shows balanced valuation metrics.
Growth Score
WeakSSWL.NS faces weak or negative growth trends.
Financial Health Score
ExcellentSSWL.NS maintains a strong and stable balance sheet.
Profitability Score
WeakSSWL.NS struggles to sustain strong margins.
Key Financial Metrics
Is SSWL.NS Expensive or Cheap?
P/E Ratio
SSWL.NS trades at 29.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SSWL.NS's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values Steel Strips Wheels Limited at 4.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.28 times EBITDA. This signals the market has high growth expectations.
How Well Does SSWL.NS Make Money?
Net Profit Margin
For every $100 in sales, Steel Strips Wheels Limited keeps $4.71 as profit after all expenses.
Operating Margin
Core operations generate 8.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.09 in profit for every $100 of shareholder equity.
ROA
Steel Strips Wheels Limited generates $6.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Steel Strips Wheels Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Steel Strips Wheels Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
SSWL.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How SSWL.NS Stacks Against Its Sector Peers
| Metric | SSWL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.03 | 24.94 | Worse (Expensive) |
| ROE | 16.09% | 965.00% | Weak |
| Net Margin | 4.71% | -2081.00% (disorted) | Weak |
| Debt/Equity | 0.46 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 1.08 | 2.36 | Neutral |
| ROA | 6.59% | 364.00% | Weak |
SSWL.NS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Steel Strips Wheels Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
181.24%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
723.71%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
391.87%
Industry Style: Cyclical, Growth, Discretionary
High Growth