SIFY TECHNOLOGIES-SPON ADR (SIFY) Stock Fundamental Analysis
NASDAQ:SIFY - Nasdaq - US82655M2061 - ADR - Currency: USD
SIFY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 33 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SIFY was profitable.
In the past 5 years SIFY has always been profitable.
SIFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.06%, SIFY is in line with its industry, outperforming 57.58% of the companies in the same industry.
SIFY has a Return On Equity (0.24%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.15%, SIFY is in line with its industry, outperforming 57.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SIFY is in line with the industry average of 6.64%.
| 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
SIFY's Profit Margin of 0.14% is in line compared to the rest of the industry. SIFY outperforms 57.58% of its industry peers.
In the last couple of years the Profit Margin of SIFY has declined.
With a Operating Margin value of 6.08%, SIFY perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
In the last couple of years the Operating Margin of SIFY has declined.
With a Gross Margin value of 37.20%, SIFY is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
SIFY's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SIFY is destroying value.
SIFY has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SIFY has been increased compared to 5 years ago.
Compared to 1 year ago, SIFY has an improved debt to assets ratio.
2.2 Solvency
SIFY has an Altman-Z score of 2.18. 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.
SIFY's Altman-Z score of 2.18 is amongst the best of the industry. SIFY outperforms 87.88% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that SIFY has dependencies on debt financing.
The Debt to Equity ratio of SIFY (1.50) is worse than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.18 |
ROIC/WACC0.33
WACC9.67%
2.3 Liquidity
A Current Ratio of 1.08 indicates that SIFY should not have too much problems paying its short term obligations.
SIFY has a Current ratio (1.08) which is in line with its industry peers.
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 has a worse Quick ratio (0.95) than 60.61% 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.
SIFY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.13%.
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%19.43%
3.2 Future
SIFY is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -43.00% yearly.
The Revenue is expected to grow by 13.54% on average over the next years. This is quite good.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.68, the valuation of SIFY can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SIFY indicates a rather cheap valuation: SIFY is cheaper than 100.00% of the companies listed in the same industry.
SIFY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.85.
Based on the Price/Forward Earnings ratio of 74.18, the valuation of SIFY can be described as expensive.
Based on the Price/Forward Earnings ratio, SIFY is valued a bit cheaper than 60.61% of the companies in the same industry.
SIFY is valuated expensively when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 74.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIFY is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.48 |
4.3 Compensation for Growth
SIFY's earnings are expected to decrease with -26.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-69.96%
EPS Next 3Y-26.31%
5. Dividend
5.1 Amount
SIFY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SIFY (5/1/2025, 9:30:44 PM)
4.54
-0.11 (-2.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners4.92%
Inst Owner Change-0.12%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.97B
Analysts82.86
Price Target18.36 (304.41%)
Short Float %0.34%
Short Ratio0.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)-99.09%
Min Revenue beat(2)-99.12%
Max Revenue beat(2)-99.07%
Revenue beat(4)0
Avg Revenue beat(4)-99.09%
Min Revenue beat(4)-99.12%
Max Revenue beat(4)-99.07%
Revenue beat(8)0
Avg Revenue beat(8)-78.83%
Revenue beat(12)0
Avg Revenue beat(12)-61.58%
Revenue beat(16)0
Avg Revenue beat(16)-51.28%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-116.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 74.18 | ||
| P/S | 4.67 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 8.17 | ||
| P/tB | 8.41 | ||
| EV/EBITDA | 28.48 |
EPS(TTM)0.68
EY14.98%
EPS(NY)0.06
Fwd EY1.35%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS0.97
BVpS0.56
TBVpS0.54
PEG (NY)N/A
PEG (5Y)0.77
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 | 2.18 |
F-ScoreN/A
WACC9.67%
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%