SIFY TECHNOLOGIES-SPON ADR (SIFY)

US82655M1071 - ADR

2.97  +0.07 (+2.41%)

After market: 2.86 -0.11 (-3.7%)

Fundamental Rating

3

Overall SIFY gets a fundamental rating of 3 out of 10. We evaluated SIFY against 34 industry peers in the Diversified Telecommunication Services industry. SIFY has a medium profitability rating, but doesn't score so well on its financial health evaluation. SIFY is valied quite expensively at the moment, while it does show a decent growth rate.



4

1. Profitability

1.1 Basic Checks

In the past year SIFY was profitable.
In the past 5 years SIFY has always been profitable.
Each year in the past 5 years SIFY had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.07%, SIFY is in line with its industry, outperforming 51.52% of the companies in the same industry.
SIFY has a Return On Equity of 0.20%. This is comparable to the rest of the industry: SIFY outperforms 51.52% of its industry peers.
SIFY has a Return On Invested Capital (3.56%) which is comparable to the rest of the industry.
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 5.42%.
Industry RankSector Rank
ROA 0.07%
ROE 0.2%
ROIC 3.56%
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

SIFY has a Profit Margin of 0.14%. This is comparable to the rest of the industry: SIFY outperforms 51.52% of its industry peers.
SIFY's Profit Margin has declined in the last couple of years.
SIFY has a Operating Margin (6.08%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SIFY has declined.
Looking at the Gross Margin, with a value of 37.20%, SIFY is doing worse than 81.82% of the companies in the same industry.
In the last couple of years the Gross Margin of SIFY has remained more or less at the same level.
Industry RankSector 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%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SIFY is destroying value.
Compared to 1 year ago, SIFY has more shares outstanding
The number of shares outstanding for SIFY has been increased compared to 5 years ago.
SIFY has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.03 indicates that SIFY is not a great score, but indicates only limited risk for bankruptcy at the moment.
SIFY has a Altman-Z score of 2.03. This is amongst the best in the industry. SIFY outperforms 90.91% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that SIFY is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, SIFY perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF N/A
Altman-Z 2.03
ROIC/WACC0.37
WACC9.63%

2.3 Liquidity

A Current Ratio of 1.03 indicates that SIFY should not have too much problems paying its short term obligations.
SIFY has a Current ratio of 1.03. This is comparable to the rest of the industry: SIFY outperforms 42.42% of its industry peers.
A Quick Ratio of 0.89 indicates that SIFY may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, SIFY is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 0.89

4

3. Growth

3.1 Past

SIFY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -85.33%.
Measured over the past years, SIFY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.63% on average per year.
The Revenue has grown by 11.13% in the past year. This is quite good.
Measured over the past years, SIFY shows a small growth in Revenue. The Revenue has been growing by 7.95% on average per year.
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%15.37%

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 -22.48% on average per year.
The Revenue is expected to grow by 12.57% on average over the next years. This is quite good.
EPS Next Y-36.81%
EPS Next 2Y-69.96%
EPS Next 3Y-55.14%
EPS Next 5Y-22.48%
Revenue Next Year15.87%
Revenue Next 2Y12.32%
Revenue Next 3Y12.59%
Revenue Next 5Y12.57%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 4.37, the valuation of SIFY can be described as very cheap.
Based on the Price/Earnings ratio, SIFY is valued cheaper than 100.00% of the companies in the same industry.
SIFY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 48.53, SIFY can be considered very expensive at the moment.
SIFY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, SIFY is valued quite expensively.
Industry RankSector Rank
PE 4.37
Fwd PE 48.53

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SIFY is valued a bit more expensive than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.35

4.3 Compensation for Growth

SIFY's earnings are expected to decrease with -55.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-69.96%
EPS Next 3Y-55.14%

0

5. Dividend

5.1 Amount

SIFY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

SIFY TECHNOLOGIES-SPON ADR

NASDAQ:SIFY (12/20/2024, 8:00:02 PM)

After market: 2.86 -0.11 (-3.7%)

2.97

+0.07 (+2.41%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)10-22 2024-10-22/bmo
Earnings (Next)01-16 2025-01-16/amc
Inst Owners1.05%
Inst Owner Change324.44%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.29B
Analysts82.86
Price Target18.36 (518.18%)
Short Float %8%
Short Ratio0.84
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)N/A
DP0%
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)-99.12%
Max Revenue beat(2)-99.1%
Revenue beat(4)0
Avg Revenue beat(4)-99.1%
Min Revenue beat(4)-99.12%
Max Revenue beat(4)-99.09%
Revenue beat(8)0
Avg Revenue beat(8)-69.57%
Revenue beat(12)0
Avg Revenue beat(12)-55.06%
Revenue beat(16)0
Avg Revenue beat(16)-46.68%
PT rev (1m)0%
PT rev (3m)500%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)500%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
Industry RankSector Rank
PE 4.37
Fwd PE 48.53
P/S 3.07
P/FCF N/A
P/OCF N/A
P/B 4.56
P/tB 4.68
EV/EBITDA 18.35
EPS(TTM)0.68
EY22.9%
EPS(NY)0.06
Fwd EY2.06%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS0.97
BVpS0.65
TBVpS0.63
PEG (NY)N/A
PEG (5Y)0.51
Profitability
Industry RankSector Rank
ROA 0.07%
ROE 0.2%
ROCE 4.56%
ROIC 3.56%
ROICexc 4.01%
ROICexgc 4.08%
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 Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF N/A
Debt/EBITDA 2.99
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.03
Quick Ratio 0.89
Altman-Z 2.03
F-ScoreN/A
WACC9.63%
ROIC/WACC0.37
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-55.14%
EPS Next 5Y-22.48%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y7.84%
Revenue growth 5Y7.95%
Sales Q2Q%15.37%
Revenue Next Year15.87%
Revenue Next 2Y12.32%
Revenue Next 3Y12.59%
Revenue Next 5Y12.57%
EBIT growth 1Y-11.16%
EBIT growth 3Y-3.19%
EBIT growth 5Y4.33%
EBIT Next Year335.42%
EBIT Next 3YN/A
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%