Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Globe Textiles (India). This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Globe Textiles (India)'s
is considered below, and whether this is a fair price.
Price based on past earnings
Globe Textiles (India)'s earnings available for a low price, and how does
this compare to other companies in the same industry?
Globe Textiles (India)'s earnings are expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Globe Textiles (India) is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Globe Textiles (India)'s performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Globe Textiles (India)
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Globe Textiles (India)'s finances.
The net worth of a company is the difference between its assets and liabilities.
Globe Textiles (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Globe Textiles (India)'s cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Globe Textiles (India)'s finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 2.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Bhavin S. Parikh has been Chief Executive Officer and Chief Financial Officer of Globe Textiles (India) Limited since March 22, 2017. Mr. Parikh is in-charge of chalking out financial and business strategies for Globe Textiles (India) Limited. He started his career at Adani Group, spending a year there. He later joined textiles in 2001 at a time Globe Textiles was forging ahead with growth plans. Expanding into new products, visions and markets have been a daily routine while making sure there is a consistent improvement in products and existing customer services. He is the Co-founder of FundTonic, an Angel investment platform that handholds and supports start-ups who hold promise by providing co-working space, accelerator programs, mentoring and helps secure funding. He is nurturing two—one that aims to make technical, innovative papers lasting nearly 300 years and the other that wishes to navigate through the complex world of digital data analytics. His task on hand is to fortify the ideas well, strategize their business plan and action, reach the market at large profitably and help start-ups to reach their goal. He graduated from the Swinburne University of Technology, Australia, with a Bachelors Degree in Finance and Marketing.
Bhavin's compensation has increased by more than 20% in the past year.
Bhavin's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure of the
Globe Textiles (India)
management team in years:
The tenure for the Globe Textiles (India) management team is about average.
Chairman & MD
CEO & CFO
Company Secretary & Compliance Officer
Whole Time Director
Board of Directors Tenure
Average tenure and age of the
Globe Textiles (India)
board of directors in years:
The average tenure for the Globe Textiles (India) board of directors is less than 3 years, this suggests a new board.
Do Insiders Own Lots Of Shares In Globe Textiles (India) Ltd. (NSE:GLOBE)?
Generally speaking, as a company grows, institutions will increase their ownership. … Globe Textiles (India) is a smaller company with a market capitalization of ₹300m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Globe Textiles (India)
Why You Should Like Globe Textiles (India) Ltd.’s (NSE:GLOBE) ROCE
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Where Globe Textiles (India) Ltd's (NSE:GLOBE) Earnings Growth Stands Against Its Industry
After looking at Globe Textiles (India) Ltd's (NSE:GLOBE) latest earnings announcement (30 September 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … See our latest analysis for Globe Textiles (India)? … GLOBE's trailing twelve-month earnings (from 30 September 2017) of ₹34.20m has
What does Globe Textiles (India) Ltd's (NSE:GLOBE) Balance Sheet Tell Us About Its Future?
Moving onto cash from operations, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … In GLOBE's case, the ratio of 2x suggests that interest is not strongly covered, which means that lenders may refuse to lend the company more money, as it is seen as too risky in terms of default.Next Steps: GLOBE’s debt and cash flow levels indicate room for improvement. … Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue.
Should You Be Tempted To Buy Globe Textiles (India) Ltd (NSE:GLOBE) Because Of Its PE Ratio?
By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for GLOBE Price per share = ₹41 Earnings per share = ₹3.642 ∴ Price-Earnings Ratio = ₹41 ÷ ₹3.642 = 11.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with GLOBE, then GLOBE’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.
Are Globe Textiles (India) Ltd's (NSEI:GLOBE) Interest Costs Too High?
NSEI:GLOBE Historical Debt Dec 8th 17 Is GLOBE’s level of debt at an acceptable level? … GLOBE’s debt and cash flow levels indicate room for improvement. … With a high level of debt on its balance sheet, GLOBE could still be in a financially strong position if its cash flow also stacked up.
Globe Textiles (India) Ltd. manufactures and trades textile and apparel products in India and internationally. The company offers denim and non-denim fabrics; shirting fabrics, such as printed linens, suiting prints, and dyed shirting fabrics; printed fabrics consisting of polyester print fabrics, chadri voiles, sarongs, scarfs, polyester dyed fabrics, cotton prints, and cotton dyed fabrics; and jeans for men and women under the Afford, INDIGEN, and INDIGIRL brand names. It also provides home textiles comprising bedsheets, comforters, fitted and flat sheets, curtains, table linens, and fancy cushions; and various yarns. In addition, the company exports its products. Globe Textiles (India) Ltd. was founded in 1995 and is based in Ahmedabad, India.
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