NSEI:MFSL

Stock Analysis Report

Max Financial Services

Executive Summary

Max Financial Services Limited, through its subsidiary, Max Life Insurance Company Limited, provides life insurance products in India.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.1%

NSEI:MFSL

-0.9%

IN Insurance

-1.4%

IN Market


1 Year Return

-7.2%

NSEI:MFSL

-2.4%

IN Insurance

-14.5%

IN Market

MFSL underperformed the Insurance industry which returned -1.2% over the past year.

MFSL outperformed the Market in India which returned -13.4% over the past year.


Share holder returns

MFSLIndustryMarket
7 Day10.1%-0.9%-1.4%
30 Day8.1%1.6%-4.4%
90 Day8.3%2.8%-8.1%
1 Year-7.2%-7.2%-1.6%-2.4%-12.7%-14.5%
3 Year-14.2%-14.4%57.1%49.0%16.7%10.5%
5 Year39.0%35.7%66.3%52.6%35.0%22.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Max Financial Services undervalued based on future cash flows and its price relative to the stock market?

42x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Max Financial Services is good value based on earnings compared to the IN Insurance industry average.

Max Financial Services is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Max Financial Services is poor value based on expected growth next year.


Price Based on Value of Assets

Max Financial Services is overvalued based on assets compared to the IN Insurance industry average.


Next Steps

Future Growth

How is Max Financial Services expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Max Financial Services's revenue is expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

Max Financial Services's earnings are expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

Max Financial Services's revenue growth is expected to exceed the India market average.

Max Financial Services's earnings growth is positive but not above the India market average.

Max Financial Services's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Max Financial Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-0.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Max Financial Services's 1-year earnings growth is negative, it can't be compared to the IN Insurance industry average.


Return on Equity

Max Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Max Financial Services used its assets less efficiently than the IN Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Max Financial Services's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Max Financial Services's financial position?


Financial Position Analysis

Max Financial Services's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Max Financial Services's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Max Financial Services's level of debt (0%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (16.8% vs 0% today).

Debt is well covered by operating cash flow (6319247.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4761.7x debt.


Next Steps

Dividend

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

2.57%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Max Financial Services's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Max Financial Services's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Max Financial Services has not reported any payouts.

Unable to verify if Max Financial Services's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Max Financial Services has not reported any payouts.


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 Max Financial Services's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average management tenure


CEO

Mohit Talwar (60yo)

3.6yrs

Tenure

₹143,642,640

Compensation

Mr. Mohit Talwar has been Managing Director of Max Financial Services Limited and Max India Limited since January 15, 2016. He has been Group Vice Chairman at Max India Limited since April 1, 2019. Mr. Tal ...


CEO Compensation Analysis

Mohit's remuneration is higher than average for companies of similar size in India.

Mohit's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

7.2yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Max Financial Services management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.6yrs

Average Tenure

62yo

Average Age

The tenure for the Max Financial Services board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Sell₹137,033,99710 Jan 19
Rahul Khosla
EntityIndividual
Role
President
Executive President & Permanent Invitee
Shares310,755
Max Price₹440.97
Sell₹2,143,204,08814 Dec 18
Max Ventures Investment Holdings Private Limited
EntityCompany
Shares4,999,130
Max Price₹428.72

Ownership Breakdown


Management Team

  • Analjit Singh (65yo)

    Founder & Non-Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: ₹500.00k
  • Rahul Khosla (60yo)

    Executive President & Permanent Invitee

    • Tenure: 3.6yrs
  • Rajesh Sud (49yo)

    Executive Vice Chairman & MD of Max Life Insurance Ltd.

    • Tenure: 0.0yrs
  • Mohit Talwar (60yo)

    MD & Director

    • Tenure: 3.6yrs
    • Compensation: ₹143.64m
  • K. Ramsundar (61yo)

    Administration Assistant - Office of Founder & Chairman Emeritus

    • Tenure: 38.2yrs
  • Anuradha Rao (60yo)

    Executive Assistant - Office of Founder & Chairman Emeritus

    • Tenure: 0.0yrs
  • Archana Pandey (59yo)

    Senior Director of Corporate Affairs

    • Tenure: 7.2yrs
  • Jatin Khanna (40yo)

    CFO & Investor Relations Officer

    • Tenure: 0.1yrs
  • Ramachandra Pai (52yo)

    Manager of Administration

    • Tenure: 23.9yrs
  • Vandana Trehan (44yo)

    Executive Assistant to Executive President

    • Tenure: 8.0yrs

Board Members

  • Analjit Singh (65yo)

    Founder & Non-Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: ₹500.00k
  • Aman Mehta (73yo)

    Independent Director

    • Tenure: 0.0yrs
    • Compensation: ₹700.00k
  • Ashwani Windlass (63yo)

    Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹2.00m
  • Sanjay Nayar (59yo)

    Non-Executive Director

    • Tenure: 3.4yrs
  • Naina Lal Kidwai (62yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: ₹1.30m
  • Jai Arya

    Additional Independent Director

    • Tenure: 0.8yrs
  • Rajesh Sud (49yo)

    Executive Vice Chairman & MD of Max Life Insurance Ltd.

    • Tenure: 0.0yrs
  • Mohit Talwar (60yo)

    MD & Director

    • Tenure: 3.6yrs
    • Compensation: ₹143.64m
  • Dinesh Mittal (66yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: ₹1.60m
  • Sahil Vachani (36yo)

    Non-Executive Director

    • Tenure: 1.3yrs

Company Information

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


Key Information

  • Name: Max Financial Services Limited
  • Ticker: MFSL
  • Exchange: NSEI
  • Founded: 1982
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: ₹118.589b
  • Shares outstanding: 269.40m
  • Website: https://www.maxfinancialservices.com

Number of Employees


Location

  • Max Financial Services Limited
  • Max House
  • 1, Dr. Jha Marg
  • New Delhi
  • Delhi
  • 110020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500271BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1999
MFSLNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1999

Biography

Max Financial Services Limited, through its subsidiary, Max Life Insurance Company Limited, provides life insurance products in India. It offers long term savings, protection, and retirement solutions. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 12:49
End of Day Share Price2019/08/21 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.