NSEI:SMLISUZU

Stock Analysis Report

Executive Summary

SML Isuzu Limited manufactures and sells commercial vehicles and related parts primarily in India and internationally.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.

Risks

  • SML Isuzu has significant price volatility in the past 3 months.
  • SML Isuzu is covered by less than 3 analysts.

Share Price & News

How has SML Isuzu's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.4%

NSEI:SMLISUZU

2.8%

IN Machinery

0.6%

IN Market


1 Year Return

-25.9%

NSEI:SMLISUZU

-24.5%

IN Machinery

-10.8%

IN Market

SMLISUZU underperformed the Machinery industry which returned -24.5% over the past year.

SMLISUZU underperformed the Market in India which returned -10.8% over the past year.


Share holder returns

SMLISUZUIndustryMarket
7 Day-3.4%2.8%0.6%
30 Day-8.8%2.8%0.7%
90 Day-21.1%-11.4%-5.8%
1 Year-25.9%-25.9%-23.2%-24.5%-9.0%-10.8%
3 Year-53.2%-53.7%-3.0%-6.7%18.9%12.9%
5 Year-29.1%-30.6%32.4%25.0%33.8%21.2%

Price Volatility Vs. Market

How volatile is SML Isuzu's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SML Isuzu undervalued based on future cash flows and its price relative to the stock market?

52.9x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

SML Isuzu's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SML Isuzu's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

SML Isuzu is overvalued based on earnings compared to the IN Machinery industry average.

SML Isuzu is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

SML Isuzu is poor value based on expected growth next year.


Price Based on Value of Assets

SML Isuzu is overvalued based on assets compared to the IN Machinery industry average.


Next Steps

Future Growth

How is SML Isuzu expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

46.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SML Isuzu's revenue is expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

SML Isuzu's earnings are expected to grow significantly at over 20% yearly.

SML Isuzu's revenue growth is expected to exceed the India market average.

SML Isuzu's earnings growth is expected to exceed the India market average.

SML Isuzu's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if SML Isuzu will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has SML Isuzu performed over the past 5 years?

-18.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SML Isuzu's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

SML Isuzu's 1-year earnings growth is negative, it can't be compared to the 5-year average.

SML Isuzu's 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.


Return on Equity

SML Isuzu has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SML Isuzu used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.


Return on Capital Employed

SML Isuzu's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SML Isuzu's financial position?


Financial Position Analysis

SML Isuzu is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SML Isuzu's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

SML Isuzu's level of debt (51.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.1% vs 51.4% today).

Debt is well covered by operating cash flow (26%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.1x debt.


Next Steps

Dividend

What is SML Isuzu's current dividend yield, its reliability and sustainability?

1.70%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase SML Isuzu before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

SML Isuzu's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.57%).

SML Isuzu's dividend is below the markets top 25% of dividend payers in India (2.31%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of SML Isuzu's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Yugo Hashimoto (59yo)

1.1yrs

Tenure

0

Mr. Yugo Hashimoto has been Managing Director and Chief Executive Officer at SML Isuzu Limited since August 10, 2018 and also has been its Director since August 9, 2018. 


Management Age and Tenure

4.4yrs

Average Tenure

62yo

Average Age

The tenure for the SML Isuzu management team is about average.


Board Age and Tenure

7.7yrs

Average Tenure

65.5yo

Average Age

The tenure for the SML Isuzu board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Gopal Bansal (63yo)

    CFO & Whole-Time Director

    • Tenure: 5.6yrs
    • Compensation: ₹18.72m
  • K. Prasad (68yo)

    Advisor to Chief Executive Officer

    • Tenure: 3.4yrs
    • Compensation: ₹3.14m
  • Eiichi Seto (60yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: ₹14.34m
  • Parvesh Madan

    Company Secretary & Compliance Officer

    • Tenure: 5.4yrs
    • Compensation: ₹3.00m
  • Yugo Hashimoto (59yo)

    MD, CEO & Director

    • Tenure: 1.1yrs
  • Tadanao Yamamoto (62yo)

    Director of Quality Assurance & Whole-Time Director

    • Tenure: 0.8yrs

Board Members

  • Surender Tuteja (74yo)

    Chairman

    • Tenure: 14.3yrs
    • Compensation: ₹1.62m
  • Ashish Thakur (78yo)

    Independent Non-Executive Director

    • Tenure: 13.7yrs
    • Compensation: ₹1.26m
  • Gopal Bansal (63yo)

    CFO & Whole-Time Director

    • Tenure: 5.6yrs
    • Compensation: ₹18.72m
  • Pramod Nanda (87yo)

    Independent Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: ₹1.38m
  • Pankaj Bajaj (48yo)

    Non-Executive Director

    • Tenure: 13.2yrs
  • Vasantha Bharucha (75yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: ₹1.17m
  • Eiichi Seto (60yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: ₹14.34m
  • Sudhir Nayar (68yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: ₹1.26m
  • Yugo Hashimoto (59yo)

    MD, CEO & Director

    • Tenure: 1.1yrs
  • Tadanao Yamamoto (62yo)

    Director of Quality Assurance & Whole-Time Director

    • Tenure: 0.8yrs

Company Information

SML Isuzu Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SML Isuzu Limited
  • Ticker: SMLISUZU
  • Exchange: NSEI
  • Founded: 1983
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: ₹8.693b
  • Shares outstanding: 14.47m
  • Website: https://www.smlisuzu.com

Number of Employees


Location

  • SML Isuzu Limited
  • SCO 204-205
  • Sector 34-A
  • Chandigarh
  • Chandigarh
  • 160135
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505192BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1995
SMLISUZUNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1995

Biography

SML Isuzu Limited manufactures and sells commercial vehicles and related parts primarily in India and internationally. The company's products include trucks and buses. It also provides special applications ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 12:49
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.