AZURE POWER GLOBAL LTD (AZRE)

MU0527S00004 - Common Stock

1.69  -0.05 (-2.87%)

After market: 1.74 +0.05 (+2.96%)

Fundamental Rating

3

Overall AZRE gets a fundamental rating of 3 out of 10. We evaluated AZRE against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. While AZRE is still in line with the averages on profitability rating, there are concerns on its financial health. AZRE shows excellent growth, but is valued quite expensive already.



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5

1. Profitability

1.1 Basic Checks

In the past year AZRE has reported negative net income.
In the past year AZRE had a positive cash flow from operations.
In the past 5 years AZRE reported 4 times negative net income.
AZRE had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

AZRE has negative profitability rations, so we won't be analyzing them here.
AZRE has a better Return On Invested Capital (6.25%) than 85.71% of its industry peers.
AZRE had an Average Return On Invested Capital over the past 3 years of 4.48%. This is in line with the industry average of 3.61%.
The last Return On Invested Capital (6.25%) for AZRE is above the 3 year average (4.48%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC 6.25%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.48%
ROIC(5y)4.18%

1.3 Margins

With an excellent Operating Margin value of 65.97%, AZRE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AZRE's Operating Margin has improved in the last couple of years.
The Gross Margin of AZRE (91.63%) is better than 95.24% of its industry peers.
AZRE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 65.97%
PM (TTM) N/A
GM 91.63%
OM growth 3Y-0.03%
OM growth 5Y4.53%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.26%
GM growth 5Y-0.22%

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0

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AZRE is destroying value.
The number of shares outstanding for AZRE has been increased compared to 1 year ago.
AZRE has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.14, we must say that AZRE is in the distress zone and has some risk of bankruptcy.
AZRE has a Altman-Z score of 0.14. This is in the lower half of the industry: AZRE underperforms 71.43% of its industry peers.
A Debt/Equity ratio of 3.91 is on the high side and indicates that AZRE has dependencies on debt financing.
AZRE has a worse Debt to Equity ratio (3.91) than 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.91
Debt/FCF N/A
Altman-Z 0.14
ROIC/WACC0.77
WACC8.08%

2.3 Liquidity

AZRE has a Current Ratio of 0.61. This is a bad value and indicates that AZRE is not financially healthy enough and could expect problems in meeting its short term obligations.
AZRE has a worse Current ratio (0.61) than 95.24% of its industry peers.
A Quick Ratio of 0.61 indicates that AZRE may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, AZRE is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.61
Quick Ratio 0.61

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8

3. Growth

3.1 Past

AZRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 126.67%, which is quite impressive.
AZRE shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.06%.
The Revenue has been growing by 42.14% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)126.67%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q58.06%
Revenue 1Y (TTM)20.06%
Revenue growth 3Y25.54%
Revenue growth 5Y42.14%
Revenue growth Q2Q27.24%

3.2 Future

Based on estimates for the next years, AZRE will show a very strong growth in Earnings Per Share. The EPS will grow by 470.20% on average per year.
Based on estimates for the next years, AZRE will show a very strong growth in Revenue. The Revenue will grow by 382.17% on average per year.
EPS Next Y132.45%
EPS Next 2Y45.15%
EPS Next 3Y470.2%
EPS Next 5YN/A
Revenue Next Year18.19%
Revenue Next 2Y14.19%
Revenue Next 3Y382.17%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Forward Earnings ratio of 5888.84, AZRE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AZRE is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, AZRE is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 5888.84

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AZRE is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.45

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AZRE does not grow enough to justify the current Price/Earnings ratio.
AZRE's earnings are expected to grow with 470.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.15%
EPS Next 3Y470.2%

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0

5. Dividend

5.1 Amount

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

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AZURE POWER GLOBAL LTD

NYSE:AZRE (7/12/2023, 7:04:00 PM)

After market: 1.74 +0.05 (+2.96%)

1.69

-0.05 (-2.87%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap81.68M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 5888.84
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 65.97%
PM (TTM) N/A
GM 91.63%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 3.91
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.61
Quick Ratio 0.61
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)126.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y132.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.06%
Revenue growth 3Y25.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y