Zen Technologies Limited
Zen Technologies Limited Fundamental Analysis
Zen Technologies Limited (ZENTEC.NS) shows moderate financial fundamentals with a PE ratio of 48.09, profit margin of 31.51%, and ROE of 15.43%. The company generates $8.3B in annual revenue with weak year-over-year growth of 1.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.7/100 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 ZENTEC.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentZENTEC.NS demonstrates superior asset utilization.
Valuation Score
WeakZENTEC.NS trades at a premium to fair value.
Growth Score
WeakZENTEC.NS faces weak or negative growth trends.
Financial Health Score
ExcellentZENTEC.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentZENTEC.NS achieves industry-leading margins.
Key Financial Metrics
Is ZENTEC.NS Expensive or Cheap?
P/E Ratio
ZENTEC.NS trades at 48.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ZENTEC.NS's PEG of 7.94 indicates potential overvaluation.
Price to Book
The market values Zen Technologies Limited at 7.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 33.93 times EBITDA. This signals the market has high growth expectations.
How Well Does ZENTEC.NS Make Money?
Net Profit Margin
For every $100 in sales, Zen Technologies Limited keeps $31.51 as profit after all expenses.
Operating Margin
Core operations generate 45.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.43 in profit for every $100 of shareholder equity.
ROA
Zen Technologies Limited generates $12.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zen Technologies Limited generates limited operating cash flow of $541.61M, signaling weaker underlying cash strength.
Free Cash Flow
Zen Technologies Limited produces free cash flow of $439.82M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.89 in free cash annually.
FCF Yield
ZENTEC.NS converts 0.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.010
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How ZENTEC.NS Stacks Against Its Sector Peers
| Metric | ZENTEC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.09 | 26.64 | Worse (Expensive) |
| ROE | 15.43% | 1309.00% | Weak |
| Net Margin | 31.51% | -34303.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 7.82 | 10.68 | Strong Liquidity |
| ROA | 12.83% | -1549361.00% (disorted) | Strong |
ZENTEC.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zen Technologies Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
475.83%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
321.02%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-306.87%
Industry Style: Cyclical, Value, Infrastructure
Declining