DR. REDDY'S LABORATORIES-ADR (RDY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RDY - US2561352038 - ADR
14.16 USD
+0.07 (+0.5%)
14.16 USD
0 (0%)
Overall RDY gets a fundamental rating of 6 out of 10. We evaluated RDY against 192 industry peers in the Pharmaceuticals industry. While RDY has a great profitability rating, there are some minor concerns on its financial health. RDY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RDY was profitable.
RDY had a positive operating cash flow in the past year.
In the past 5 years RDY has always been profitable.
Each year in the past 5 years RDY had a positive operating cash flow.
1.2 Ratios
RDY has a Return On Assets of 10.62%. This is amongst the best in the industry. RDY outperforms 91.67% of its industry peers.
RDY has a Return On Equity of 16.03%. This is amongst the best in the industry. RDY outperforms 89.06% of its industry peers.
RDY's Return On Invested Capital of 13.03% is amongst the best of the industry. RDY outperforms 92.19% of its industry peers.
RDY had an Average Return On Invested Capital over the past 3 years of 15.26%. This is above the industry average of 12.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 16.03% | ||
| ROIC | 13.03% |
ROA(3y)13.25%
ROA(5y)10.88%
ROE(3y)18.65%
ROE(5y)15.68%
ROIC(3y)15.26%
ROIC(5y)13.95%
1.3 Margins
RDY has a Profit Margin of 16.82%. This is amongst the best in the industry. RDY outperforms 89.06% of its industry peers.
In the last couple of years the Profit Margin of RDY has grown nicely.
RDY has a Operating Margin of 19.62%. This is amongst the best in the industry. RDY outperforms 86.98% of its industry peers.
RDY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 66.88%, RDY is in the better half of the industry, outperforming 75.52% of the companies in the same industry.
RDY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.62% | ||
| PM (TTM) | 16.82% | ||
| GM | 66.88% |
OM growth 3Y9.42%
OM growth 5Y4.7%
PM growth 3Y19.59%
PM growth 5Y8.42%
GM growth 3Y2.12%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RDY is still creating some value.
RDY has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for RDY has been increased compared to 5 years ago.
The debt/assets ratio for RDY is higher compared to a year ago.
2.2 Solvency
RDY has an Altman-Z score of 5.69. This indicates that RDY is financially healthy and has little risk of bankruptcy at the moment.
RDY's Altman-Z score of 5.69 is fine compared to the rest of the industry. RDY outperforms 74.48% of its industry peers.
The Debt to FCF ratio of RDY is 3.17, which is a good value as it means it would take RDY, 3.17 years of fcf income to pay off all of its debts.
RDY has a better Debt to FCF ratio (3.17) than 88.54% of its industry peers.
RDY has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.03, RDY perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 5.69 |
ROIC/WACC1.27
WACC10.23%
2.3 Liquidity
RDY has a Current Ratio of 1.85. This is a normal value and indicates that RDY is financially healthy and should not expect problems in meeting its short term obligations.
RDY's Current ratio of 1.85 is on the low side compared to the rest of the industry. RDY is outperformed by 63.54% of its industry peers.
A Quick Ratio of 1.35 indicates that RDY should not have too much problems paying its short term obligations.
RDY has a worse Quick ratio (1.35) than 67.19% of its industry peers.
The current and quick ratio evaluation for RDY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.21% over the past year.
Measured over the past years, RDY shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.62% on average per year.
The Revenue has grown by 14.04% in the past year. This is quite good.
Measured over the past years, RDY shows a quite strong growth in Revenue. The Revenue has been growing by 13.26% on average per year.
EPS 1Y (TTM)8.21%
EPS 3Y33.55%
EPS 5Y23.62%
EPS Q2Q%7.44%
Revenue 1Y (TTM)14.04%
Revenue growth 3Y14.86%
Revenue growth 5Y13.26%
Sales Q2Q%9.83%
3.2 Future
The Earnings Per Share is expected to decrease by -1.46% on average over the next years.
The Revenue is expected to grow by 6.48% on average over the next years.
EPS Next Y-5.99%
EPS Next 2Y-8.2%
EPS Next 3Y-1.46%
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y3.85%
Revenue Next 3Y5.51%
Revenue Next 5Y6.48%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RDY is valuated rather expensively with a Price/Earnings ratio of 18.39.
Compared to the rest of the industry, the Price/Earnings ratio of RDY indicates a rather cheap valuation: RDY is cheaper than 83.85% of the companies listed in the same industry.
RDY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
RDY is valuated rather expensively with a Price/Forward Earnings ratio of 22.23.
Based on the Price/Forward Earnings ratio, RDY is valued a bit cheaper than the industry average as 75.52% of the companies are valued more expensively.
RDY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 22.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RDY indicates a rather cheap valuation: RDY is cheaper than 85.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RDY is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.27 | ||
| EV/EBITDA | 11.27 |
4.3 Compensation for Growth
The excellent profitability rating of RDY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y-8.2%
EPS Next 3Y-1.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, RDY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.45, RDY pays a better dividend. On top of this RDY pays more dividend than 89.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, RDY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
The dividend of RDY decreases each year by -19.44%.
RDY has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-19.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RDY pays out 11.54% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of RDY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP11.54%
EPS Next 2Y-8.2%
EPS Next 3Y-1.46%
14.16
+0.07 (+0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners51.65%
Inst Owner Change-1.51%
Ins Owners21.86%
Ins Owner ChangeN/A
Market Cap11.79B
Revenue(TTM)343.10B
Net Income(TTM)57.72B
Analysts57.33
Price TargetN/A
Short Float %1.57%
Short Ratio8.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend0.09
Dividend Growth(5Y)-19.44%
DP11.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.63%
Min EPS beat(2)-8.52%
Max EPS beat(2)-6.74%
EPS beat(4)1
Avg EPS beat(4)-3.93%
Min EPS beat(4)-8.52%
Max EPS beat(4)2.77%
EPS beat(8)4
Avg EPS beat(8)-0.94%
EPS beat(12)8
Avg EPS beat(12)6.66%
EPS beat(16)10
Avg EPS beat(16)7.01%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.88%
Max Revenue beat(2)-1.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-3.88%
Max Revenue beat(4)1%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)7
Avg Revenue beat(12)1.24%
Revenue beat(16)9
Avg Revenue beat(16)1.2%
PT rev (1m)-1.15%
PT rev (3m)-0.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.06%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-4.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 22.23 | ||
| P/S | 3.08 | ||
| P/FCF | 57.27 | ||
| P/OCF | 17.98 | ||
| P/B | 2.94 | ||
| P/tB | 4.32 | ||
| EV/EBITDA | 11.27 |
EPS(TTM)0.77
EY5.44%
EPS(NY)0.64
Fwd EY4.5%
FCF(TTM)0.25
FCFY1.75%
OCF(TTM)0.79
OCFY5.56%
SpS4.59
BVpS4.82
TBVpS3.28
PEG (NY)N/A
PEG (5Y)0.78
Graham Number9.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 16.03% | ||
| ROCE | 17.14% | ||
| ROIC | 13.03% | ||
| ROICexc | 16.05% | ||
| ROICexgc | 25.11% | ||
| OM | 19.62% | ||
| PM (TTM) | 16.82% | ||
| GM | 66.88% | ||
| FCFM | 5.38% |
ROA(3y)13.25%
ROA(5y)10.88%
ROE(3y)18.65%
ROE(5y)15.68%
ROIC(3y)15.26%
ROIC(5y)13.95%
ROICexc(3y)19.62%
ROICexc(5y)17.62%
ROICexgc(3y)25.36%
ROICexgc(5y)22.59%
ROCE(3y)21.22%
ROCE(5y)19.86%
ROICexgc growth 3Y6.58%
ROICexgc growth 5Y2.58%
ROICexc growth 3Y0.6%
ROICexc growth 5Y-0.12%
OM growth 3Y9.42%
OM growth 5Y4.7%
PM growth 3Y19.59%
PM growth 5Y8.42%
GM growth 3Y2.12%
GM growth 5Y0.39%
F-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 211.61% | ||
| Cap/Sales | 11.76% | ||
| Interest Coverage | 16.55 | ||
| Cash Conversion | 68.09% | ||
| Profit Quality | 32% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 5.69 |
F-Score4
WACC10.23%
ROIC/WACC1.27
Cap/Depr(3y)179.81%
Cap/Depr(5y)161.03%
Cap/Sales(3y)9.33%
Cap/Sales(5y)8.68%
Profit Quality(3y)47.43%
Profit Quality(5y)60.48%
High Growth Momentum
Growth
EPS 1Y (TTM)8.21%
EPS 3Y33.55%
EPS 5Y23.62%
EPS Q2Q%7.44%
EPS Next Y-5.99%
EPS Next 2Y-8.2%
EPS Next 3Y-1.46%
EPS Next 5YN/A
Revenue 1Y (TTM)14.04%
Revenue growth 3Y14.86%
Revenue growth 5Y13.26%
Sales Q2Q%9.83%
Revenue Next Year5.14%
Revenue Next 2Y3.85%
Revenue Next 3Y5.51%
Revenue Next 5Y6.48%
EBIT growth 1Y1.53%
EBIT growth 3Y25.68%
EBIT growth 5Y18.58%
EBIT Next Year13.97%
EBIT Next 3Y6.34%
EBIT Next 5Y9.17%
FCF growth 1Y-62.42%
FCF growth 3Y9.92%
FCF growth 5Y-12.7%
OCF growth 1Y-18.43%
OCF growth 3Y18.21%
OCF growth 5Y9.24%
DR. REDDY'S LABORATORIES-ADR / RDY FAQ
What is the ChartMill fundamental rating of DR. REDDY'S LABORATORIES-ADR (RDY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RDY.
Can you provide the valuation status for DR. REDDY'S LABORATORIES-ADR?
ChartMill assigns a valuation rating of 5 / 10 to DR. REDDY'S LABORATORIES-ADR (RDY). This can be considered as Fairly Valued.
What is the profitability of RDY stock?
DR. REDDY'S LABORATORIES-ADR (RDY) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for RDY stock?
The Price/Earnings (PE) ratio for DR. REDDY'S LABORATORIES-ADR (RDY) is 18.39 and the Price/Book (PB) ratio is 2.94.
How financially healthy is DR. REDDY'S LABORATORIES-ADR?
The financial health rating of DR. REDDY'S LABORATORIES-ADR (RDY) is 6 / 10.