Tata Communications Limited Fundamental Analysis
Tata Communications Limited Fundamental Analysis
Tata Communications Limited (TATACOMM.BO) shows moderate financial fundamentals with a PE ratio of 56.11, profit margin of 4.04%, and ROE of 32.46%. The company generates $248.1B in annual revenue with strong year-over-year growth of 11.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TATACOMM.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakTATACOMM.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateTATACOMM.BO shows balanced valuation metrics.
Growth Score
ExcellentTATACOMM.BO delivers strong and consistent growth momentum.
Financial Health Score
WeakTATACOMM.BO carries high financial risk with limited liquidity.
Profitability Score
WeakTATACOMM.BO struggles to sustain strong margins.
Key Financial Metrics
Is TATACOMM.BO Expensive or Cheap?
P/E Ratio
TATACOMM.BO trades at 56.11 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TATACOMM.BO's PEG of -1.66 indicates potential undervaluation.
Price to Book
The market values Tata Communications Limited at 16.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.27 times EBITDA. This is generally considered low.
How Well Does TATACOMM.BO Make Money?
Net Profit Margin
For every $100 in sales, Tata Communications Limited keeps $4.04 as profit after all expenses.
Operating Margin
Core operations generate 14.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.46 in profit for every $100 of shareholder equity.
ROA
Tata Communications Limited generates $3.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tata Communications Limited generates limited operating cash flow of $9.54B, signaling weaker underlying cash strength.
Free Cash Flow
Tata Communications Limited generates weak or negative free cash flow of $-1.86B, restricting financial flexibility.
FCF Per Share
Each share generates $-6.52 in free cash annually.
FCF Yield
TATACOMM.BO converts -0.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How TATACOMM.BO Stacks Against Its Sector Peers
| Metric | TATACOMM.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.11 | 24.20 | Worse (Expensive) |
| ROE | 32.46% | 959.00% | Weak |
| Net Margin | 4.04% | -68674.00% (disorted) | Weak |
| Debt/Equity | 3.55 | 3.02 | Neutral |
| Current Ratio | 0.49 | 1.71 | Weak Liquidity |
| ROA | 3.53% | -2558.00% (disorted) | Weak |
TATACOMM.BO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tata Communications Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.40%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
2236.51%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
15.30%
Industry Style: Growth, Technology, Streaming
High Growth