14.85 USD
-0.67 (-4.32%)
14.27 USD
-0.58 (-3.91%)
We assign a fundamental rating of 2 out of 10 to SIFY. SIFY was compared to 38 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of SIFY have multiple concerns. SIFY is valied quite expensively at the moment, while 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 4 of the past 5 years.
- In the past 5 years SIFY always reported a positive cash flow from operatings.
1.2 Ratios
- SIFY has a Return On Assets (-3.75%) which is in line with its industry peers.
- SIFY has a Return On Equity (-15.48%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 3.05%, SIFY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- SIFY had an Average Return On Invested Capital over the past 3 years of 4.02%. This is below the industry average of 6.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -15.48% | ||
| ROIC | 3.05% |
ROA(3y)0.1%
ROA(5y)1.43%
ROE(3y)0.08%
ROE(5y)4.11%
ROIC(3y)4.02%
ROIC(5y)6.04%
1.3 Margins
- SIFY has a Operating Margin (5.21%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of SIFY has declined.
- SIFY's Gross Margin of 38.57% is on the low side compared to the rest of the industry. SIFY is outperformed by 71.05% of its industry peers.
- SIFY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.21% | ||
| PM (TTM) | N/A | ||
| GM | 38.57% |
OM growth 3Y-19.05%
OM growth 5Y-7.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.62%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
- SIFY has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.12 indicates that SIFY is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.12, SIFY belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
- A Debt/Equity ratio of 1.60 is on the high side and indicates that SIFY has dependencies on debt financing.
- The Debt to Equity ratio of SIFY (1.60) is worse than 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.12 |
ROIC/WACC0.35
WACC8.77%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that SIFY may have some problems paying its short term obligations.
- The Current ratio of SIFY (0.96) is worse than 60.53% of its industry peers.
- SIFY has a Quick Ratio of 0.96. This is a bad value and indicates that SIFY is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.82, SIFY is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.82 |
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%.
- The Earnings Per Share has been growing by 8.63% on average over the past years. This is quite good.
- Looking at the last year, SIFY shows a quite strong growth in Revenue. The Revenue has grown by 11.13% in the last year.
- 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%4.74%
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 -40.40% on average per year.
- SIFY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.20% yearly.
EPS Next Y-36.81%
EPS Next 2Y-69.96%
EPS Next 3Y-26.31%
EPS Next 5Y-40.4%
Revenue Next Year15.87%
Revenue Next 2Y12.32%
Revenue Next 3Y13.44%
Revenue Next 5Y12.2%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 21.84 indicates a rather expensive valuation of SIFY.
- 63.16% of the companies in the same industry are more expensive than SIFY, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, SIFY is valued at the same level.
- Based on the Price/Forward Earnings ratio of 242.65, the valuation of SIFY can be described as expensive.
- 60.53% of the companies in the same industry are more expensive than SIFY, based on the Price/Forward Earnings ratio.
- SIFY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 242.65 |
4.2 Price Multiples
- 71.05% of the companies in the same industry are cheaper than SIFY, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 79.93 |
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)2.53
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 | 0% |
SIFY TECHNOLOGIES-SPON ADR / SIFY FAQ
What is the fundamental rating for SIFY stock?
ChartMill assigns a fundamental rating of 2 / 10 to SIFY.
Can you provide the valuation status for SIFY TECHNOLOGIES-SPON ADR?
ChartMill assigns a valuation rating of 1 / 10 to SIFY TECHNOLOGIES-SPON ADR (SIFY). This can be considered as Overvalued.
Can you provide the profitability details for SIFY TECHNOLOGIES-SPON ADR?
SIFY TECHNOLOGIES-SPON ADR (SIFY) has a profitability rating of 3 / 10.
How financially healthy is SIFY TECHNOLOGIES-SPON ADR?
The financial health rating of SIFY TECHNOLOGIES-SPON ADR (SIFY) is 2 / 10.
Can you provide the dividend sustainability for SIFY stock?
The dividend rating of SIFY TECHNOLOGIES-SPON ADR (SIFY) is 0 / 10 and the dividend payout ratio is -0.48%.