DR. REDDY'S LABORATORIES-ADR (RDY) Stock Fundamental Analysis
USA - NYSE:RDY - US2561352038 - ADR
13.4 USD
-0.07 (-0.52%)
13.4 USD
0 (0%)
RDY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. RDY has an excellent profitability rating, but there are some minor concerns on its financial health. RDY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RDY was profitable.
In the past year RDY had a positive cash flow from operations.
RDY had positive earnings in each of the past 5 years.
Each year in the past 5 years RDY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RDY (10.62%) is better than 92.71% of its industry peers.
RDY has a better Return On Equity (16.03%) than 89.58% of its industry peers.
The Return On Invested Capital of RDY (13.03%) is better than 91.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RDY is in line with the industry average of 15.46%.
| 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 90.10% of its industry peers.
RDY's Profit Margin has improved in the last couple of years.
RDY has a better Operating Margin (19.62%) than 87.50% of its industry peers.
RDY's Operating Margin has improved in the last couple of years.
RDY's Gross Margin of 66.88% is fine compared to the rest of the industry. RDY outperforms 75.52% of its industry peers.
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.
The number of shares outstanding for RDY remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RDY has more shares outstanding
The debt/assets ratio for RDY is higher compared to a year ago.
2.2 Solvency
RDY has an Altman-Z score of 5.50. This indicates that RDY is financially healthy and has little risk of bankruptcy at the moment.
RDY has a better Altman-Z score (5.50) than 79.17% 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.
Looking at the Debt to FCF ratio, with a value of 3.17, RDY belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
RDY has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
RDY's Debt to Equity ratio of 0.03 is in line compared to the rest of the industry. RDY outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 5.5 |
ROIC/WACC1.28
WACC10.14%
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.
Looking at the Current ratio, with a value of 1.85, RDY is doing worse than 61.98% of the companies in the same industry.
RDY has a Quick Ratio of 1.35. This is a normal value and indicates that RDY is financially healthy and should not expect problems in meeting its short term obligations.
RDY has a Quick ratio of 1.35. This is in the lower half of the industry: RDY underperforms 65.10% 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.
The Earnings Per Share has been growing by 23.62% on average over the past years. This is a very strong growth
Looking at the last year, RDY shows a quite strong growth in Revenue. The Revenue has grown by 14.04% in the last year.
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 -0.85% on average over the next years.
RDY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.76% yearly.
EPS Next Y-1.71%
EPS Next 2Y-7.64%
EPS Next 3Y-0.85%
EPS Next 5YN/A
Revenue Next Year6.3%
Revenue Next 2Y4.13%
Revenue Next 3Y5.56%
Revenue Next 5Y6.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RDY is valuated rather expensively with a Price/Earnings ratio of 17.18.
Compared to the rest of the industry, the Price/Earnings ratio of RDY indicates a rather cheap valuation: RDY is cheaper than 85.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.13. RDY is valued slightly cheaper when compared to this.
RDY is valuated rather expensively with a Price/Forward Earnings ratio of 20.54.
Based on the Price/Forward Earnings ratio, RDY is valued a bit cheaper than 75.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, RDY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 20.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDY is valued cheaper than 86.98% of the companies in the same industry.
RDY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RDY is cheaper than 77.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.56 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
The excellent profitability rating of RDY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-7.64%
EPS Next 3Y-0.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, RDY is not a good candidate for dividend investing.
RDY's Dividend Yield is rather good when compared to the industry average which is at 6.54. RDY pays more dividend than 90.10% of the companies in the same industry.
With a Dividend Yield of 0.67, RDY pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
11.54% of the earnings are spent on dividend by RDY. This is a low number and 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-7.64%
EPS Next 3Y-0.85%
13.4
-0.07 (-0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners50.91%
Inst Owner Change0.72%
Ins Owners21.86%
Ins Owner ChangeN/A
Market Cap11.15B
Revenue(TTM)343.10B
Net Income(TTM)57.72B
Analysts57.33
Price Target15.25 (13.81%)
Short Float %1.45%
Short Ratio9.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)2.55%
PT rev (3m)0.83%
EPS NQ rev (1m)-3.05%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-8.5%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 20.54 | ||
| P/S | 2.88 | ||
| P/FCF | 53.56 | ||
| P/OCF | 16.82 | ||
| P/B | 2.75 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 10.59 |
EPS(TTM)0.78
EY5.82%
EPS(NY)0.65
Fwd EY4.87%
FCF(TTM)0.25
FCFY1.87%
OCF(TTM)0.8
OCFY5.94%
SpS4.65
BVpS4.88
TBVpS3.32
PEG (NY)N/A
PEG (5Y)0.73
Graham Number9.25
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 | 5.5 |
F-Score4
WACC10.14%
ROIC/WACC1.28
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-1.71%
EPS Next 2Y-7.64%
EPS Next 3Y-0.85%
EPS Next 5YN/A
Revenue 1Y (TTM)14.04%
Revenue growth 3Y14.86%
Revenue growth 5Y13.26%
Sales Q2Q%9.83%
Revenue Next Year6.3%
Revenue Next 2Y4.13%
Revenue Next 3Y5.56%
Revenue Next 5Y6.76%
EBIT growth 1Y1.53%
EBIT growth 3Y25.68%
EBIT growth 5Y18.58%
EBIT Next Year18.8%
EBIT Next 3Y6.18%
EBIT Next 5Y10.31%
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 17.18 and the Price/Book (PB) ratio is 2.75.
How financially healthy is DR. REDDY'S LABORATORIES-ADR?
The financial health rating of DR. REDDY'S LABORATORIES-ADR (RDY) is 6 / 10.