Transport Corporation of India Limited
Transport Corporation of India Limited Fundamental Analysis
Transport Corporation of India Limited (TCI.NS) shows moderate financial fundamentals with a PE ratio of 16.17, profit margin of 9.36%, and ROE of 20.43%. The company generates $47.9B in annual revenue with strong year-over-year growth of 11.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.3/100 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 TCI.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTCI.NS demonstrates superior asset utilization.
Valuation Score
ModerateTCI.NS shows balanced valuation metrics.
Growth Score
ExcellentTCI.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTCI.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateTCI.NS maintains healthy but balanced margins.
Key Financial Metrics
Is TCI.NS Expensive or Cheap?
P/E Ratio
TCI.NS trades at 16.17 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TCI.NS's PEG of 4.75 indicates potential overvaluation.
Price to Book
The market values Transport Corporation of India Limited at 3.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.19 times EBITDA. This signals the market has high growth expectations.
How Well Does TCI.NS Make Money?
Net Profit Margin
For every $100 in sales, Transport Corporation of India Limited keeps $9.36 as profit after all expenses.
Operating Margin
Core operations generate 8.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.43 in profit for every $100 of shareholder equity.
ROA
Transport Corporation of India Limited generates $14.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Transport Corporation of India Limited generates limited operating cash flow of $2.32B, signaling weaker underlying cash strength.
Free Cash Flow
Transport Corporation of India Limited generates weak or negative free cash flow of $299.28M, restricting financial flexibility.
FCF Per Share
Each share generates $3.90 in free cash annually.
FCF Yield
TCI.NS converts 0.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How TCI.NS Stacks Against Its Sector Peers
| Metric | TCI.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.17 | 24.98 | Better (Cheaper) |
| ROE | 20.43% | 1284.00% | Weak |
| Net Margin | 9.36% | -45683.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.24 | 10.67 | Strong Liquidity |
| ROA | 14.55% | -1542352.00% (disorted) | Strong |
TCI.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 Transport Corporation of India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
63.88%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
187.59%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
41.37%
Industry Style: Cyclical, Value, Infrastructure
High Growth