Zuari Agro Chemicals Limited
Zuari Agro Chemicals Limited Fundamental Analysis
Zuari Agro Chemicals Limited (ZUARI.BO) shows strong financial fundamentals with a PE ratio of 0.98, profit margin of 24.33%, and ROE of 41.46%. The company generates $39.6B in annual revenue with weak year-over-year growth of -3.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.2/100 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 ZUARI.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentZUARI.BO demonstrates superior asset utilization.
Valuation Score
ExcellentZUARI.BO trades at attractive valuation levels.
Growth Score
ModerateZUARI.BO shows steady but slowing expansion.
Financial Health Score
ModerateZUARI.BO shows balanced financial health with some risks.
Profitability Score
ModerateZUARI.BO maintains healthy but balanced margins.
Key Financial Metrics
Is ZUARI.BO Expensive or Cheap?
P/E Ratio
ZUARI.BO trades at 0.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ZUARI.BO's PEG of -0.64 indicates potential undervaluation.
Price to Book
The market values Zuari Agro Chemicals Limited at 0.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.32 times EBITDA. This is generally considered low.
How Well Does ZUARI.BO Make Money?
Net Profit Margin
For every $100 in sales, Zuari Agro Chemicals Limited keeps $24.33 as profit after all expenses.
Operating Margin
Core operations generate 14.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.46 in profit for every $100 of shareholder equity.
ROA
Zuari Agro Chemicals Limited generates $23.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zuari Agro Chemicals Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Zuari Agro Chemicals Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
ZUARI.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.24
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How ZUARI.BO Stacks Against Its Sector Peers
| Metric | ZUARI.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.98 | 27.18 | Better (Cheaper) |
| ROE | 41.46% | 860.00% | Weak |
| Net Margin | 24.33% | -121084.00% (disorted) | Strong |
| Debt/Equity | 0.24 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 0.81 | 4.81 | Weak Liquidity |
| ROA | 23.67% | -7173.00% (disorted) | Strong |
ZUARI.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zuari Agro Chemicals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-11.38%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
120.54%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-80.59%
Industry Style: Cyclical, Commodity, Value
Declining