TDCX Inc.
TDCX Inc. Fundamental Analysis
TDCX Inc. (TDCX) shows moderate financial fundamentals with a PE ratio of 10.88, profit margin of 18.25%, and ROE of 19.82%. The company generates $0.7B 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 80.2/100 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 TDCX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTDCX demonstrates superior asset utilization.
Valuation Score
ExcellentTDCX trades at attractive valuation levels.
Growth Score
ModerateTDCX shows steady but slowing expansion.
Financial Health Score
ExcellentTDCX maintains a strong and stable balance sheet.
Profitability Score
ExcellentTDCX achieves industry-leading margins.
Key Financial Metrics
Is TDCX Expensive or Cheap?
P/E Ratio
TDCX trades at 10.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TDCX's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values TDCX Inc. at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.00 times EBITDA. This is generally considered low.
How Well Does TDCX Make Money?
Net Profit Margin
For every $100 in sales, TDCX Inc. keeps $18.25 as profit after all expenses.
Operating Margin
Core operations generate 20.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.82 in profit for every $100 of shareholder equity.
ROA
TDCX Inc. generates $15.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TDCX Inc. produces operating cash flow of $136.47M, showing steady but balanced cash generation.
Free Cash Flow
TDCX Inc. generates strong free cash flow of $124.73M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.87 in free cash annually.
FCF Yield
TDCX converts 9.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How TDCX Stacks Against Its Sector Peers
| Metric | TDCX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.88 | 26.49 | Better (Cheaper) |
| ROE | 19.82% | 1307.00% | Weak |
| Net Margin | 18.25% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 8.04 | 10.48 | Strong Liquidity |
| ROA | 15.66% | -1549793.00% (disorted) | Strong |
TDCX outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TDCX Inc.'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: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure