Tera Software Limited
Tera Software Limited Fundamental Analysis
Tera Software Limited (TERASOFT.BO) shows moderate financial fundamentals with a PE ratio of 19.66, profit margin of 10.43%, and ROE of 16.57%. The company generates $2.0B in annual revenue with strong year-over-year growth of 26.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TERASOFT.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakTERASOFT.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTERASOFT.BO trades at attractive valuation levels.
Growth Score
ModerateTERASOFT.BO shows steady but slowing expansion.
Financial Health Score
ExcellentTERASOFT.BO maintains a strong and stable balance sheet.
Profitability Score
WeakTERASOFT.BO struggles to sustain strong margins.
Key Financial Metrics
Is TERASOFT.BO Expensive or Cheap?
P/E Ratio
TERASOFT.BO trades at 19.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TERASOFT.BO's PEG of 0.76 indicates potential undervaluation.
Price to Book
The market values Tera Software Limited at 3.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.03 times EBITDA. This signals the market has high growth expectations.
How Well Does TERASOFT.BO Make Money?
Net Profit Margin
For every $100 in sales, Tera Software Limited keeps $10.43 as profit after all expenses.
Operating Margin
Core operations generate 15.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.57 in profit for every $100 of shareholder equity.
ROA
Tera Software Limited generates $7.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tera Software Limited generates limited operating cash flow of $-72.93M, signaling weaker underlying cash strength.
Free Cash Flow
Tera Software Limited generates weak or negative free cash flow of $-97.36M, restricting financial flexibility.
FCF Per Share
Each share generates $-7.78 in free cash annually.
FCF Yield
TERASOFT.BO converts -2.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How TERASOFT.BO Stacks Against Its Sector Peers
| Metric | TERASOFT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.66 | 34.49 | Better (Cheaper) |
| ROE | 16.57% | 1124.00% | Weak |
| Net Margin | 10.43% | -133673.00% (disorted) | Strong |
| Debt/Equity | 0.22 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 1.68 | 5.81 | Neutral |
| ROA | 7.08% | -308769.00% (disorted) | Weak |
TERASOFT.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tera Software Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-59.42%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
44.20%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-50.70%
Industry Style: Growth, Innovation, High Beta
Declining