SIFY TECHNOLOGIES-SPON ADR (SIFY) Stock Fundamental Analysis
NASDAQ:SIFY - Nasdaq - US82655M2061 - ADR - Currency: USD
Taking everything into account, SIFY scores 3 out of 10 in our fundamental rating. SIFY was compared to 32 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of SIFY while its profitability can be described as average. SIFY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SIFY had positive earnings in the past year.
SIFY had positive earnings in each of the past 5 years.
SIFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SIFY (0.06%) is comparable to the rest of the industry.
SIFY has a Return On Equity (0.24%) which is in line with its industry peers.
SIFY has a Return On Invested Capital (3.15%) which is in line with its industry peers.
SIFY had an Average Return On Invested Capital over the past 3 years of 5.84%. This is in line with the industry average of 5.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.06% | ||
| ROE | 0.24% | ||
| ROIC | 3.15% |
ROA(3y)1.31%
ROA(5y)2.03%
ROE(3y)4.28%
ROE(5y)6.14%
ROIC(3y)5.84%
ROIC(5y)6.97%
1.3 Margins
With a Profit Margin value of 0.14%, SIFY perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
SIFY's Profit Margin has declined in the last couple of years.
SIFY's Operating Margin of 6.08% is in line compared to the rest of the industry. SIFY outperforms 48.39% of its industry peers.
In the last couple of years the Operating Margin of SIFY has declined.
SIFY has a Gross Margin of 37.20%. This is amonst the worse of the industry: SIFY underperforms 80.65% of its industry peers.
In the last couple of years the Gross Margin of SIFY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 0.14% | ||
| GM | 37.2% |
OM growth 3Y-14.77%
OM growth 5Y-5.65%
PM growth 3Y-72.06%
PM growth 5Y-51.2%
GM growth 3Y-2.02%
GM growth 5Y0.18%
2. Health
2.1 Basic Checks
SIFY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SIFY has more shares outstanding
Compared to 5 years ago, SIFY has more shares outstanding
The debt/assets ratio for SIFY has been reduced compared to a year ago.
2.2 Solvency
SIFY has an Altman-Z score of 2.29. This is not the best score and indicates that SIFY is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.29, SIFY belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
SIFY has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SIFY (1.50) is worse than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.29 |
ROIC/WACC0.33
WACC9.68%
2.3 Liquidity
A Current Ratio of 1.08 indicates that SIFY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.08, SIFY perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
SIFY has a Quick Ratio of 1.08. This is a bad value and indicates that SIFY is not financially healthy enough and could expect problems in meeting its short term obligations.
SIFY's Quick ratio of 0.95 is on the low side compared to the rest of the industry. SIFY is outperformed by 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for SIFY have decreased strongly by -85.33% in the last year.
The Earnings Per Share has been growing by 8.63% on average over the past years. This is quite good.
The Revenue has grown by 11.13% in the past year. This is quite good.
SIFY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.95% yearly.
EPS 1Y (TTM)-85.33%
EPS 3Y-0.64%
EPS 5Y8.63%
EPS Q2Q%N/A
Revenue 1Y (TTM)11.13%
Revenue growth 3Y7.84%
Revenue growth 5Y7.95%
Sales Q2Q%19.43%
3.2 Future
Based on estimates for the next years, SIFY will show a very negative growth in Earnings Per Share. The EPS will decrease by -43.00% on average per year.
SIFY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.54% yearly.
EPS Next Y-36.81%
EPS Next 2Y-69.96%
EPS Next 3Y-26.31%
EPS Next 5Y-43%
Revenue Next Year15.87%
Revenue Next 2Y12.32%
Revenue Next 3Y13.44%
Revenue Next 5Y13.54%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.09, the valuation of SIFY can be described as very cheap.
Based on the Price/Earnings ratio, SIFY is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
SIFY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 78.76 indicates a quite expensive valuation of SIFY.
The rest of the industry has a similar Price/Forward Earnings ratio as SIFY.
SIFY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 78.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIFY indicates a slightly more expensive valuation: SIFY is more expensive than 64.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.01 |
4.3 Compensation for Growth
A cheap valuation may be justified as SIFY's earnings are expected to decrease with -26.31% in the coming years.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-69.96%
EPS Next 3Y-26.31%
5. Dividend
5.1 Amount
No dividends for SIFY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.82
-0.54 (-10.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners4.92%
Inst Owner Change-100%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.09B
Analysts82.86
Price Target18.36 (280.91%)
Short Float %0.25%
Short Ratio0.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-99.11%
Min Revenue beat(2)-99.14%
Max Revenue beat(2)-99.09%
Revenue beat(4)0
Avg Revenue beat(4)-99.12%
Min Revenue beat(4)-99.14%
Max Revenue beat(4)-99.09%
Revenue beat(8)0
Avg Revenue beat(8)-79.35%
Revenue beat(12)0
Avg Revenue beat(12)-62.51%
Revenue beat(16)0
Avg Revenue beat(16)-52.46%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-116.67%
EPS NY rev (3m)-116.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.28%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 78.76 | ||
| P/S | 5.08 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 8.89 | ||
| P/tB | 9.15 | ||
| EV/EBITDA | 30.01 |
EPS(TTM)0.68
EY14.11%
EPS(NY)0.06
Fwd EY1.27%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS0.95
BVpS0.54
TBVpS0.53
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.06% | ||
| ROE | 0.24% | ||
| ROCE | 4.04% | ||
| ROIC | 3.15% | ||
| ROICexc | 3.63% | ||
| ROICexgc | 3.68% | ||
| OM | 6.08% | ||
| PM (TTM) | 0.14% | ||
| GM | 37.2% | ||
| FCFM | N/A |
ROA(3y)1.31%
ROA(5y)2.03%
ROE(3y)4.28%
ROE(5y)6.14%
ROIC(3y)5.84%
ROIC(5y)6.97%
ROICexc(3y)6.67%
ROICexc(5y)8.34%
ROICexgc(3y)6.83%
ROICexgc(5y)8.64%
ROCE(3y)7.52%
ROCE(5y)9.05%
ROICexcg growth 3Y-32.78%
ROICexcg growth 5Y-15.62%
ROICexc growth 3Y-32.03%
ROICexc growth 5Y-15.22%
OM growth 3Y-14.77%
OM growth 5Y-5.65%
PM growth 3Y-72.06%
PM growth 5Y-51.2%
GM growth 3Y-2.02%
GM growth 5Y0.18%
F-ScoreN/A
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.39 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.29 |
F-ScoreN/A
WACC9.68%
ROIC/WACC0.33
Cap/Depr(3y)272.18%
Cap/Depr(5y)229.1%
Cap/Sales(3y)33.86%
Cap/Sales(5y)27.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-85.33%
EPS 3Y-0.64%
EPS 5Y8.63%
EPS Q2Q%N/A
EPS Next Y-36.81%
EPS Next 2Y-69.96%
EPS Next 3Y-26.31%
EPS Next 5Y-43%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y7.84%
Revenue growth 5Y7.95%
Sales Q2Q%19.43%
Revenue Next Year15.87%
Revenue Next 2Y12.32%
Revenue Next 3Y13.44%
Revenue Next 5Y13.54%
EBIT growth 1Y-11.16%
EBIT growth 3Y-3.19%
EBIT growth 5Y4.33%
EBIT Next Year319.35%
EBIT Next 3Y83.78%
EBIT Next 5YN/A
FCF growth 1Y-51.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-40.23%
OCF growth 3Y-10.57%
OCF growth 5Y28.16%