UltraTech Cement Limited
UltraTech Cement Limited Fundamental Analysis
UltraTech Cement Limited (ULTRACEMCO.BO) shows weak financial fundamentals with a PE ratio of 43.55, profit margin of 8.24%, and ROE of 10.36%. The company generates $877.7B in annual revenue with moderate year-over-year growth of 7.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.6/100 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 ULTRACEMCO.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakULTRACEMCO.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakULTRACEMCO.BO trades at a premium to fair value.
Growth Score
ModerateULTRACEMCO.BO shows steady but slowing expansion.
Financial Health Score
ModerateULTRACEMCO.BO shows balanced financial health with some risks.
Profitability Score
WeakULTRACEMCO.BO struggles to sustain strong margins.
Key Financial Metrics
Is ULTRACEMCO.BO Expensive or Cheap?
P/E Ratio
ULTRACEMCO.BO trades at 43.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ULTRACEMCO.BO's PEG of 13.53 indicates potential overvaluation.
Price to Book
The market values UltraTech Cement Limited at 4.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.50 times EBITDA. This signals the market has high growth expectations.
How Well Does ULTRACEMCO.BO Make Money?
Net Profit Margin
For every $100 in sales, UltraTech Cement Limited keeps $8.24 as profit after all expenses.
Operating Margin
Core operations generate 21.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.36 in profit for every $100 of shareholder equity.
ROA
UltraTech Cement Limited generates $5.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
UltraTech Cement Limited generates limited operating cash flow of $55.67B, signaling weaker underlying cash strength.
Free Cash Flow
UltraTech Cement Limited generates weak or negative free cash flow of $7.71B, restricting financial flexibility.
FCF Per Share
Each share generates $26.22 in free cash annually.
FCF Yield
ULTRACEMCO.BO converts 0.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How ULTRACEMCO.BO Stacks Against Its Sector Peers
| Metric | ULTRACEMCO.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.55 | 24.02 | Worse (Expensive) |
| ROE | 10.36% | 867.00% | Weak |
| Net Margin | 8.24% | -103659.00% (disorted) | Weak |
| Debt/Equity | 0.35 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 0.68 | 5.08 | Weak Liquidity |
| ROA | 5.27% | -6488.00% (disorted) | Weak |
ULTRACEMCO.BO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews UltraTech Cement Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.32%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
3.94%
Industry Style: Cyclical, Commodity, Value
GrowingFCF CAGR
18.76%
Industry Style: Cyclical, Commodity, Value
High Growth