STEL Holdings Limited
STEL Holdings Limited Fundamental Analysis
STEL Holdings Limited (STEL.NS) shows moderate financial fundamentals with a PE ratio of 26.62, profit margin of 74.04%, and ROE of 1.58%. The company generates $0.4B in annual revenue with strong year-over-year growth of 18.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.6/100 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 STEL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSTEL.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTEL.NS shows balanced valuation metrics.
Growth Score
ExcellentSTEL.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSTEL.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentSTEL.NS achieves industry-leading margins.
Key Financial Metrics
Is STEL.NS Expensive or Cheap?
P/E Ratio
STEL.NS trades at 26.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STEL.NS's PEG of 0.36 indicates potential undervaluation.
Price to Book
The market values STEL Holdings Limited at 0.42 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.68 times EBITDA. This signals the market has high growth expectations.
How Well Does STEL.NS Make Money?
Net Profit Margin
For every $100 in sales, STEL Holdings Limited keeps $74.04 as profit after all expenses.
Operating Margin
Core operations generate 99.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.58 in profit for every $100 of shareholder equity.
ROA
STEL Holdings Limited generates $1.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
STEL Holdings Limited produces operating cash flow of $78.34M, showing steady but balanced cash generation.
Free Cash Flow
STEL Holdings Limited generates strong free cash flow of $78.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.24 in free cash annually.
FCF Yield
STEL.NS converts 1.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
19.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1427.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How STEL.NS Stacks Against Its Sector Peers
| Metric | STEL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.62 | 22.35 | Worse (Expensive) |
| ROE | 1.58% | 1280.00% | Weak |
| Net Margin | 74.04% | -5505.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 1427.28 | 2.43 | Strong Liquidity |
| ROA | 1.45% | -199583.00% (disorted) | Weak |
STEL.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews STEL Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.78%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
4.63%
Industry Style: Defensive, Dividend, Low Volatility
GrowingFCF CAGR
164.30%
Industry Style: Defensive, Dividend, Low Volatility
High Growth