NSEI:EDELWEISS

Stock Analysis Report

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Market Cap

₹80.8b

Last Updated

2021/07/23 16:05 UTC

Data Sources

Company Financials +

Executive Summary

Edelweiss Financial Services Limited provides financial products and services to individuals and institutions in India. More Details


Snowflake Analysis

Established dividend payer with moderate growth potential.


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Share Price & News

How has Edelweiss Financial Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EDELWEISS is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: EDELWEISS's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0%

EDELWEISS

1.2%

IN Capital Markets

-0.1%

IN Market


1 Year Return

11.4%

EDELWEISS

51.8%

IN Capital Markets

53.0%

IN Market

Return vs Industry: EDELWEISS underperformed the Indian Capital Markets industry which returned 51.8% over the past year.

Return vs Market: EDELWEISS underperformed the Indian Market which returned 53% over the past year.


Shareholder returns

EDELWEISSIndustryMarket
7 Day0%1.2%-0.1%
30 Day21.8%14.9%1.3%
90 Day46.8%36.2%14.9%
1 Year12.9%11.4%54.4%51.8%55.1%53.0%
3 Year-69.0%-69.7%23.8%18.8%40.2%33.0%
5 Year-0.6%-4.2%89.9%79.9%82.5%67.3%

Long-Term Price Volatility Vs. Market

How volatile is Edelweiss Financial Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Edelweiss Financial Services undervalued compared to its fair value and its price relative to the market?

30.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EDELWEISS (₹90.65) is trading above our estimate of fair value (₹12.67)

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


Price To Earnings Ratio

PE vs Industry: EDELWEISS is poor value based on its PE Ratio (30.4x) compared to the Indian Capital Markets industry average (19x).

PE vs Market: EDELWEISS is poor value based on its PE Ratio (30.4x) compared to the Indian market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: EDELWEISS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: EDELWEISS is overvalued based on its PB Ratio (1.2x) compared to the IN Capital Markets industry average (0.7x).


Future Growth

How is Edelweiss Financial Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

42.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDELWEISS's forecast earnings growth (42.1% per year) is above the savings rate (6.8%).

Earnings vs Market: EDELWEISS's earnings (42.1% per year) are forecast to grow faster than the Indian market (21.2% per year).

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

Revenue vs Market: EDELWEISS's revenue (4.3% per year) is forecast to grow slower than the Indian market (12.6% per year).

High Growth Revenue: EDELWEISS's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EDELWEISS's Return on Equity is forecast to be low in 3 years time (4.5%).


Past Performance

How has Edelweiss Financial Services performed over the past 5 years?

-46.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDELWEISS has a large one-off gain of ₹1.5B impacting its March 31 2021 financial results.

Growing Profit Margin: EDELWEISS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EDELWEISS's earnings have declined by 46.4% per year over the past 5 years.

Accelerating Growth: EDELWEISS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EDELWEISS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (33.9%).


Return on Equity

High ROE: EDELWEISS's Return on Equity (3.3%) is considered low.


Financial Health

How is Edelweiss Financial Services's financial position?


Financial Position Analysis

Short Term Liabilities: EDELWEISS's short term assets (₹297.6B) exceed its short term liabilities (₹7.2B).

Long Term Liabilities: EDELWEISS's short term assets (₹297.6B) do not cover its long term liabilities (₹375.8B).


Debt to Equity History and Analysis

Debt Level: EDELWEISS's debt to equity ratio (372.7%) is considered high.

Reducing Debt: EDELWEISS's debt to equity ratio has reduced from 642.7% to 372.7% over the past 5 years.

Debt Coverage: EDELWEISS's debt is not well covered by operating cash flow (12.1%).

Interest Coverage: Insufficient data to determine if EDELWEISS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Edelweiss Financial Services's current dividend yield, its reliability and sustainability?

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EDELWEISS's dividend (1.6%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: EDELWEISS's dividend (1.6%) is in the top 25% of dividend payers in the Indian market (1.44%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.7%), EDELWEISS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EDELWEISS's dividends in 3 years are forecast to be well covered by earnings (44.8% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Rashesh Shah (58 yo)

no data

Tenure

₹12,690,000

Compensation

Mr. Rashesh Chandrakant Shah Co-founded Edelweiss Financial Services Limited (formerly, Edelweiss Financial Services Ltd. (formerly known as Edelweiss Capital Ltd.)) in 1995. He serves as Non-Executive and...


CEO Compensation Analysis

Compensation vs Market: Rashesh's total compensation ($USD170.45K) is below average for companies of similar size in the Indian market ($USD387.57K).

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


Leadership Team

Experienced Management: EDELWEISS's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: EDELWEISS's board of directors are considered experienced (8.1 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.


Top Shareholders

Company Information

Edelweiss Financial Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Edelweiss Financial Services Limited
  • Ticker: EDELWEISS
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: ₹80.842b
  • Shares outstanding: 891.81m
  • Website: https://www.edelweissfin.com

Number of Employees


Location

  • Edelweiss Financial Services Limited
  • Edelweiss House
  • Off. C.S.T. Road
  • Mumbai
  • Maharashtra
  • 400098
  • India

Listings


Biography

Edelweiss Financial Services Limited provides financial products and services to individuals and institutions in India. It offers retail credit products, such as home loans, SME and business loans, loans a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 16:05
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.