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

Mediocre balance sheet unattractive dividend payer.

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

5.8%

SMLISUZU

3.1%

IN Machinery

3.3%

IN Market


1 Year Return

-8.7%

SMLISUZU

-8.9%

IN Machinery

7.1%

IN Market

Return vs Industry: SMLISUZU matched the Indian Machinery industry which returned -8.9% over the past year.

Return vs Market: SMLISUZU underperformed the Indian Market which returned 7.1% over the past year.


Shareholder returns

SMLISUZUIndustryMarket
7 Day5.8%3.1%3.3%
30 Day0.1%1.9%2.9%
90 Day-11.3%-1.2%3.1%
1 Year-8.3%-8.7%-7.4%-8.9%9.4%7.1%
3 Year-54.2%-54.9%-0.8%-4.6%22.7%16.4%
5 Year-42.2%-43.7%40.0%32.0%44.0%30.4%

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 compared to its fair value and its price relative to the market?

51.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SMLISUZU (₹568.7) is trading above our estimate of fair value (₹217.87)

Significantly Below Fair Value: SMLISUZU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SMLISUZU is poor value based on its PE Ratio (51.1x) compared to the Machinery industry average (12.5x).

PE vs Market: SMLISUZU is poor value based on its PE Ratio (51.1x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SMLISUZU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SMLISUZU is overvalued based on its PB Ratio (2x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is SML Isuzu forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.2%

Forecasted Capital Goods industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SMLISUZU's forecast earnings growth is above the savings rate (7.6%).

Earnings vs Market: Insufficient data to determine if SMLISUZU's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if SMLISUZU's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if SMLISUZU's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SMLISUZU's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: SMLISUZU's earnings have declined by -18.1% per year over the past 5 years.

Accelerating Growth: SMLISUZU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SMLISUZU had negative earnings growth (-26.2%) over the past year, making it difficult to compare to the Machinery industry average (13.2%).


Return on Equity

High ROE: SMLISUZU's Return on Equity (3.9%) is considered low.


Return on Assets

ROA vs Industry: SMLISUZU's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: SMLISUZU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is SML Isuzu's financial position?


Financial Position Analysis

Short Term Liabilities: SMLISUZU's short term assets (₹6.6B) exceeds its short term liabilities (₹5.2B)

Long Term Liabilities: SMLISUZU's short term assets (6.6B) exceeds its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: SMLISUZU's debt to equity ratio (51.4%) is considered high

Reducing Debt: SMLISUZU's debt to equity ratio has increased from 0.1% to 51.4% over the past 5 years.

Debt Coverage: SMLISUZU's debt is well covered by operating cash flow (26%).

Interest Coverage: SMLISUZU's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: SMLISUZU has a high level of physical assets or inventory.

Debt Coverage by Assets: SMLISUZU's debt is covered by short term assets (assets are 3.087010x debt).


Next Steps

Dividend

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

0.53%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.4%industryaverage1.6%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SMLISUZU's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: SMLISUZU's dividend (0.53%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: SMLISUZU's dividend payments have been volatile in the past 10 years.

Growing Dividend: SMLISUZU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), SMLISUZU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Yugo Hashimoto (59yo)

1.2yrs

Tenure

₹5,060,522

Compensation

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. 


CEO Compensation Analysis

Compensation vs. Market: Yugo has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Insufficient data to compare Yugo's compensation with company performance.


Management Age and Tenure

3.5yrs

Average Tenure

62.5yo

Average Age

Experienced Management: SMLISUZU's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

61yo

Average Age

Experienced Board: SMLISUZU's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Gopal Bansal (63yo)

    CFO & Whole-Time Director

    • Tenure: 5.7yrs
    • Compensation: ₹17.28m
  • K. Prasad (68yo)

    Advisor to Chief Executive Officer

    • Tenure: 3.5yrs
    • Compensation: ₹3.14m
  • Parvesh Madan

    Company Secretary & Compliance Officer

    • Tenure: 5.5yrs
    • Compensation: ₹3.26m
  • Yugo Hashimoto (59yo)

    MD, CEO & Director

    • Tenure: 1.2yrs
    • Compensation: ₹5.06m
  • Tadanao Yamamoto (62yo)

    Director of Quality Assurance & Whole-Time Director

    • Tenure: 0.9yrs
    • Compensation: ₹1.95m

Board Members

  • Surender Tuteja (74yo)

    Independent Chairman

    • Tenure: 14.3yrs
    • Compensation: ₹1.24m
  • Gopal Bansal (63yo)

    CFO & Whole-Time Director

    • Tenure: 5.7yrs
    • Compensation: ₹17.28m
  • Pankaj Bajaj (48yo)

    Non-Executive Director

    • Tenure: 13.3yrs
  • Vasantha Bharucha (75yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: ₹640.00k
  • Eiichi Seto (60yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: ₹4.50m
  • Sudhir Nayar (68yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: ₹790.00k
  • Kazuo Goda (52yo)

    Non-Executive Director

    • Tenure: 3.2yrs
  • Masaki Morohoshi (56yo)

    Non-Executive & Non-Independent Director

    • Tenure: 1.6yrs
  • Yugo Hashimoto (59yo)

    MD, CEO & Director

    • Tenure: 1.2yrs
    • Compensation: ₹5.06m
  • Tadanao Yamamoto (62yo)

    Director of Quality Assurance & Whole-Time Director

    • Tenure: 0.9yrs
    • Compensation: ₹1.95m

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: ₹8.248b
  • 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 Analysis2019/10/22 12:47
End of Day Share Price2019/10/22 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.