ZF Commercial Vehicle Control Systems India Limited Fundamental Analysis (NSE: ZFCVINDIA.NS)
ZF Commercial Vehicle Control Systems India Limited Fundamental Analysis (NSE: ZFCVINDIA.NS)
ZF Commercial Vehicle Control Systems India Limited (NSE: ZFCVINDIA.NS) shows weak financial fundamentals with a PE ratio of 60.92, profit margin of 11.86%, and ROE of 14.06%. The company generates $42.1B in annual revenue with weak year-over-year growth of 0.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.2/100 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 ZFCVINDIA.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakZFCVINDIA.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakZFCVINDIA.NS trades at a premium to fair value.
Growth Score
ModerateZFCVINDIA.NS shows steady but slowing expansion.
Financial Health Score
ModerateZFCVINDIA.NS shows balanced financial health with some risks.
Profitability Score
WeakZFCVINDIA.NS struggles to sustain strong margins.
Key Financial Metrics
Is ZFCVINDIA.NS Expensive or Cheap?
P/E Ratio
ZFCVINDIA.NS trades at 60.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ZFCVINDIA.NS's PEG of 18.90 indicates potential overvaluation.
Price to Book
The market values ZF Commercial Vehicle Control Systems India Limited at 8.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 37.76 times EBITDA. This signals the market has high growth expectations.
How Well Does ZFCVINDIA.NS Make Money?
Net Profit Margin
For every $100 in sales, ZF Commercial Vehicle Control Systems India Limited keeps $11.86 as profit after all expenses.
Operating Margin
Core operations generate 12.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.06 in profit for every $100 of shareholder equity.
ROA
ZF Commercial Vehicle Control Systems India Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ZF Commercial Vehicle Control Systems India Limited produces operating cash flow of $4.46B, showing steady but balanced cash generation.
Free Cash Flow
ZF Commercial Vehicle Control Systems India Limited produces free cash flow of $3.87B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $34.03 in free cash annually.
FCF Yield
ZFCVINDIA.NS converts 1.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
18.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How ZFCVINDIA.NS Stacks Against Its Sector Peers
| Metric | ZFCVINDIA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.92 | 26.65 | Worse (Expensive) |
| ROE | 14.06% | 973.00% | Weak |
| Net Margin | 11.86% | -4913.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 2.34 | Weak Liquidity |
| ROA | 0.00% | 326.00% | Weak |
ZFCVINDIA.NS outperforms its industry in 2 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 ZF Commercial Vehicle Control Systems India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
100.06%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
190.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
27.54%
Industry Style: Cyclical, Growth, Discretionary
High Growth