SIS (NSEI:SIS) - Share price, News & Analysis

SIS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

SIS Stock Overview

SIS Limited, together with its subsidiaries, operates as a security and related services company in India, Australia, Singapore, and New Zealand.

Rewards

Trading at 7.1% below our estimate of its fair value

Earnings are forecast to grow 15.2% per year

Risk Analysis

No risks detected for SIS from our risk checks.

SIS Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SIS
Historical stock prices
Current Share Price	₹443.65
52 Week High	₹560.00
52 Week Low	₹420.00
Beta	0.31
1 Month Change	-6.61%
3 Month Change	-10.92%
1 Year Change	3.17%
3 Year Change	-3.01%
5 Year Change	n/a
Change since IPO	17.21%

Shareholder Returns

	SIS	IN Commercial Services	IN Market
7D	-4.1%	-2.4%	0.1%
1Y	3.2%	34.1%	-1.7%

Return vs Industry: SIS underperformed the Indian Commercial Services industry which returned 33.8% over the past year.

Return vs Market: SIS exceeded the Indian Market which returned -2.5% over the past year.

Price Volatility

Is SIS's price volatile compared to industry and market?
SIS volatility
SIS Average Weekly Movement	3.8%
Commercial Services Industry Average Movement	6.9%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: SIS is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SIS's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	228,028	Rituraj Sinha	https://www.sisindia.com

SIS Limited, together with its subsidiaries, operates as a security and related services company in India, Australia, Singapore, and New Zealand. It operates through three business groups: Security Services (India), Security Services (International), and Facility Management. The company offers manned guarding, training, physical security, firemen, fire detection and suppression, maritime and aviation security, perimeter protection, command and control center, access control/entry automation, closed circuit television, intrusion detection, and paramedic and emergency response services; and loss prevention, asset protection, and rowing and mobile patrolling services.

SIS Fundamentals Summary

How do SIS's earnings and revenue compare to its market cap?
SIS fundamental statistics
Market Cap	₹65.17b
Earnings (TTM)	₹3.26b
Revenue (TTM)	₹100.59b

20.0x

P/E Ratio

0.6x

P/S Ratio

Is SIS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SIS income statement (TTM)
Revenue	₹100.59b
Cost of Revenue	₹78.91b
Gross Profit	₹21.68b
Other Expenses	₹18.42b
Earnings	₹3.26b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	22.17
Gross Margin	21.55%
Net Profit Margin	3.24%
Debt/Equity Ratio	64.0%

How did SIS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SIS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SIS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SIS. This is calculated by dividing SIS's market cap by their current preferred multiple.
What is SIS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹65.17b

SIS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	14.5x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does SIS's PE Ratio compare to its peers?

SIS PE Ratio vs Peers

The above table shows the PE ratio for SIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	64.5x

Forward PE

Price-To-Earnings vs Peers: SIS is good value based on its Price-To-Earnings Ratio (20x) compared to the peer average (64.5x).

Price to Earnings Ratio vs Industry

How does SIS's PE Ratio compare vs other companies in the Indian Commercial Services Industry?

Price-To-Earnings vs Industry: SIS is expensive based on its Price-To-Earnings Ratio (20x) compared to the Indian Commercial Services industry average (18.4x)

Price to Earnings Ratio vs Fair Ratio

What is SIS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20x
Fair PE Ratio	25.2x

Price-To-Earnings vs Fair Ratio: SIS is good value based on its Price-To-Earnings Ratio (20x) compared to the estimated Fair Price-To-Earnings Ratio (25.2x).

Share Price vs Fair Value

What is the Fair Price of SIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SIS (₹443.65) is trading below our estimate of fair value (₹477.55)

Significantly Below Fair Value: SIS is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: SIS is poor value based on its PEG Ratio (1.3x)

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Future Growth

How is SIS forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIS's forecast earnings growth (15.2% per year) is above the savings rate (6.7%).

Earnings vs Market: SIS's earnings (15.2% per year) are forecast to grow slower than the Indian market (17.5% per year).

High Growth Earnings: SIS's earnings are forecast to grow, but not significantly.

Revenue vs Market: SIS's revenue (11.5% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: SIS's revenue (11.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SIS's Return on Equity is forecast to be low in 3 years time (19.5%).

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Past Performance

How has SIS performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

20.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SIS has high quality earnings.

Growing Profit Margin: SIS's current net profit margins (3.2%) are lower than last year (4%).

Past Earnings Growth Analysis

Earnings Trend: SIS's earnings have grown significantly by 20.5% per year over the past 5 years.

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

Earnings vs Industry: SIS had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Commercial Services industry average (14.5%).

Return on Equity

High ROE: SIS's Return on Equity (15.7%) is considered low.

Discover strong past performing companies

Financial Health

How is SIS's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SIS's short term assets (₹27.7B) exceed its short term liabilities (₹21.2B).

Long Term Liabilities: SIS's short term assets (₹27.7B) exceed its long term liabilities (₹9.0B).

Debt to Equity History and Analysis

Debt Level: SIS's net debt to equity ratio (28.4%) is considered satisfactory.

Reducing Debt: SIS's debt to equity ratio has reduced from 110.4% to 64% over the past 5 years.

Debt Coverage: SIS's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: SIS's interest payments on its debt are well covered by EBIT (3.9x coverage).

Balance Sheet

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Dividend

What is SIS current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.15%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SIS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SIS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SIS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SIS's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: SIS is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SIS has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure

CEO

Rituraj Sinha (41 yo)

5.17yrs

Tenure

₹9,691,296

Compensation

Mr. Rituraj Kishore Sinha has been the Group Managing Director and Executive Director of SIS Limited since April 24, 2017 and joined in 2002. Mr. Sinha serves as a Director at Dusters Total Solutions Servi...

CEO Compensation Analysis

Compensation vs Market: Rituraj's total compensation ($USD123.89K) is below average for companies of similar size in the Indian market ($USD342.10K).

Compensation vs Earnings: Rituraj's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SIS's management team is seasoned and experienced (5.2 years average tenure).

Board Members

Experienced Board: SIS's board of directors are considered experienced (5.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/23 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31