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Subex

BSE:532348
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
532348
BSE
₹4B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Subex Limited provides operations and business support systems to communication service providers (CSPs) worldwide. The last earnings update was 81 days ago. More info.


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  • Subex has significant price volatility in the past 3 months.
532348 Share Price and Events
7 Day Returns
14.5%
BSE:532348
0.9%
IN Software
0.8%
IN Market
1 Year Returns
-10%
BSE:532348
-18.4%
IN Software
-0.7%
IN Market
532348 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Subex (532348) 14.5% 22.6% 7.2% -10% -21.2% -18.5%
IN Software 0.9% 2.6% -4.4% -18.4% -4.1% 26.8%
IN Market 0.8% 2.1% 5.8% -0.7% 41.2% 72.5%
1 Year Return vs Industry and Market
  • 532348 outperformed the Software industry which returned -18.4% over the past year.
  • 532348 underperformed the Market in India which returned -0.7% over the past year.
Price Volatility
532348
Industry
5yr Volatility vs Market

532348 Value

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

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 undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Subex to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Subex.

BSE:532348 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 17.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:532348
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.134 (1 + (1- 35%) (5.36%))
1.116
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.116 * 8.6%)
17.15%

Discounted Cash Flow Calculation for BSE:532348 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Subex is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:532348 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.15%)
2019 547.36 Est @ 10.73% 467.24
2020 600.87 Est @ 9.78% 437.84
2021 655.61 Est @ 9.11% 407.80
2022 712.26 Est @ 8.64% 378.19
2023 771.48 Est @ 8.31% 349.67
2024 833.85 Est @ 8.08% 322.62
2025 899.92 Est @ 7.92% 297.22
2026 970.23 Est @ 7.81% 273.54
2027 1,045.26 Est @ 7.73% 251.55
2028 1,125.52 Est @ 7.68% 231.22
Present value of next 10 years cash flows ₹3,416.90
BSE:532348 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹1,125.52 × (1 + 7.55%) ÷ (17.15% – 7.55%)
₹12,612.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹12,612.84 ÷ (1 + 17.15%)10
₹2,591.13
BSE:532348 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹3,416.90 + ₹2,591.13
₹6,008.03
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹6,008.03 / 562.00
₹10.69
BSE:532348 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹10.69
Current discount Discount to share price of ₹7.27
= -1 x (₹7.27 - ₹10.69) / ₹10.69
32%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Subex is available for.
Intrinsic value
32%
Share price is ₹7.27 vs Future cash flow value of ₹10.69
Current Discount Checks
For Subex to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Subex's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Subex's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Subex's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Subex's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:532348 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹0.52
BSE:532348 Share Price ** BSE (2019-04-18) in INR ₹7.27
India Software Industry PE Ratio Median Figure of 48 Publicly-Listed Software Companies 16.08x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Subex.

BSE:532348 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532348 Share Price ÷ EPS (both in INR)

= 7.27 ÷ 0.52

13.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Subex is good value based on earnings compared to the IN Software industry average.
  • Subex is good value based on earnings compared to the India market.
Price based on expected Growth
Does Subex's expected growth come at a high price?
Raw Data
BSE:532348 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
27.4%per year
India Software Industry PEG Ratio Median Figure of 9 Publicly-Listed Software Companies 0.94x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Subex, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Subex's assets?
Raw Data
BSE:532348 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹13.72
BSE:532348 Share Price * BSE (2019-04-18) in INR ₹7.27
India Software Industry PB Ratio Median Figure of 66 Publicly-Listed Software Companies 1.21x
India Market PB Ratio Median Figure of 3,628 Publicly-Listed Companies 1.11x
BSE:532348 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532348 Share Price ÷ Book Value per Share (both in INR)

= 7.27 ÷ 13.72

0.53x

* Primary Listing of Subex.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Subex is good value based on assets compared to the IN Software industry average.
X
Value checks
We assess Subex's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Subex has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

532348 Future Performance

 How is Subex expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Subex, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Subex expected to grow at an attractive rate?
  • Subex's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Subex's earnings growth is expected to exceed the India market average.
  • Unable to compare Subex's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
BSE:532348 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:532348 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 27.4%
India Software Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
India Software Industry Revenue Growth Rate Market Cap Weighted Average 12.1%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:532348 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:532348 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 3,269 274
2018-09-30 3,311 289
2018-06-30 3,241 256
2018-03-31 3,243 537 207
2017-12-31 3,344 -881
2017-09-30 3,479 -691
2017-06-30 3,502 -624
2017-03-31 3,573 539 -432
2016-12-31 3,538 1,422
2016-09-30 3,386 1,234
2016-06-30 3,345 1,030
2016-03-31 3,225 664 -743

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Subex's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Subex 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.
Raw Data
BSE:532348 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Subex Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532348 Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 0.52
2018-09-30 0.49
2018-06-30 0.45
2018-03-31 0.37
2017-12-31 -1.52
2017-09-30 -1.37
2017-06-30 -1.23
2017-03-31 -0.85
2016-12-31 2.94
2016-09-30 2.79
2016-06-30 2.80
2016-03-31 -2.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Subex will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Subex's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Subex has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

532348 Past Performance

  How has Subex performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Subex's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Subex's year on year earnings growth rate has been positive over the past 5 years.
  • Subex has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Subex has become profitable in the last year making it difficult to compare the IN Software industry average.
Earnings and Revenue History
Subex's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Subex Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532348 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,269.00 273.60 2,063.40
2018-09-30 3,310.50 289.10 2,020.60
2018-06-30 3,240.50 256.40 1,982.80
2018-03-31 3,243.20 206.80 1,965.60
2017-12-31 3,344.12 -880.59 1,903.72
2017-09-30 3,478.72 -691.19 1,864.02
2017-06-30 3,501.72 -624.19 1,834.02
2017-03-31 3,573.30 -432.30 1,807.50
2016-12-31 3,537.98 1,422.18 1,990.99
2016-09-30 3,385.68 1,233.68 1,960.09
2016-06-30 3,344.88 1,030.08 1,932.09
2016-03-31 3,224.58 -742.89 1,811.84
2015-12-31 3,460.43 894.83 1,789.90
2015-09-30 3,572.03 368.43 1,822.40
2015-06-30 3,681.63 308.63 1,821.60
2015-03-31 3,606.89 150.13 1,831.67
2014-12-31 3,330.82 -115.21 1,720.36
2014-09-30 3,325.32 -266.91 1,729.56
2014-06-30 3,274.72 -347.61 1,759.26
2014-03-31 3,400.52 -67.41 1,931.93
2013-12-31 3,346.00 -10.27 2,346.99
2013-09-30 3,337.60 150.73 2,383.59
2013-06-30 3,263.60 -474.37 2,449.09
2013-03-31 3,073.43 -439.13 1,795.58
2012-12-31 3,585.96 -431.89 2,909.18
2012-09-30 3,994.16 -344.79 3,060.18
2012-06-30 4,495.26 135.41 3,225.48

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Subex has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Subex used its assets less efficiently than the IN Software industry average last year based on Return on Assets.
  • Subex's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Subex's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Subex has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

532348 Health

 How is Subex's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Subex's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Subex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Subex's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Subex'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 checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 8.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from Subex Company Filings, last reported 3 months ago.

BSE:532348 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 7,870.00 218.80 771.20
2018-09-30 7,870.00 218.80 771.20
2018-06-30 7,794.50 321.50 300.70
2018-03-31 7,794.50 321.50 300.70
2017-12-31 7,689.50 962.40 872.70
2017-09-30 7,689.50 962.40 872.70
2017-06-30 6,840.88 1,864.91 738.61
2017-03-31 6,840.90 1,864.90 738.60
2016-12-31 7,581.10 990.00 1,324.00
2016-09-30 7,581.10 990.00 1,324.00
2016-06-30 7,269.99 2,295.10 859.96
2016-03-31 7,338.28 2,281.13 859.96
2015-12-31 3,410.40 5,595.00 502.80
2015-09-30 3,410.40 5,595.00 502.80
2015-06-30 2,090.40 7,246.28 567.00
2015-03-31 2,090.40 7,246.28 491.81
2014-12-31 1,528.60 7,675.20 295.40
2014-09-30 1,528.60 7,675.20 295.40
2014-06-30 1,736.19 7,626.01 479.34
2014-03-31 1,736.19 7,626.01 479.34
2013-12-31 1,466.00 8,073.90 395.90
2013-09-30 1,466.00 8,073.90 395.90
2013-06-30 2,249.97 7,315.82 508.27
2013-03-31 2,249.97 7,315.82 508.27
2012-12-31 2,407.20 6,804.60 59.90
2012-09-30 2,407.20 6,804.60 59.90
2012-06-30 1,446.05 6,018.23 24.20
  • Subex's level of debt (2.8%) 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 (549.3% vs 2.8% today).
  • Debt is well covered by operating cash flow (245.2%, greater than 20% of total debt).
  • Subex earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Subex's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Subex has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

532348 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Subex dividends.
If you bought ₹2,000 of Subex shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Subex's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Subex's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:532348 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Software Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:532348 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2009-04-21 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Subex has not reported any payouts.
  • Unable to verify if Subex's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Subex's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Subex 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.
X
Income/ dividend checks
We assess Subex's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Subex afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Subex has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

532348 Management

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

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.
CEO
Vinod Padmanabhan
COMPENSATION ₹12,387,600
AGE 48
TENURE AS CEO 1 years
CEO Bio

Mr. Vinod Kumar Padmanabhan, B.Tech, has been Managing Director and Chief Executive Officer of Subex Ltd. since April 1, 2018. Mr. Padmanabhan served as the Chief Operating Officer at Subex Limited until April 1, 2018. Mr. Padmanabhan served as the Group President of Subex Limited since October 15, 1997. Mr. Kumar served as the President of Revenue Maximization Solutions of Subex Limited. Mr. Kumar served as a Vice President of Sales for EMEA & Asia Pacific of Subex Systems Ltd. Mr. Kumar has over 15 years of sales and marketing experience and handles the sales activities in the EMEA and Asia Pacific regions. He has been with Subex for more than 6 years, has been instrumental in ramping up Subex's operations in Africa, Eastern Europe and the Middle East. Mr. Padmanabhan joined Subex Limited in October 1997 and was involved in the development and implementation of it’s sales strategy. He spent five years as a marketing executive with Crompton Greaves and also worked at Ashok Leyland Limited. He has been Whole Time Director of Subex Limited since May 25, 2017. Mr. Kumar holds a bachelor of technology degree in electrical and electronics from CET, University of Kerala.

CEO Compensation
  • Vinod's compensation has been consistent with company performance over the past year.
  • Vinod's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Subex management team in years:

1.3
Average Tenure
  • The average tenure for the Subex management team is less than 2 years, this suggests a new team.
Management Team

Vinod Padmanabhan

TITLE
MD, CEO & Director
COMPENSATION
₹12M
AGE
48
TENURE
1 yrs

G. Venkatraman

TITLE
Chief Financial Officer
TENURE
0.4 yrs

Roddam Naga Shankar

TITLE
Chief Operating Officer
COMPENSATION
₹10M
TENURE
0.3 yrs

G. Krishnakanth

TITLE
Company Secretary & Compliance Officer

Mohan Sitharam

TITLE
Chief Human Resources Officer

Suraj Balachandran

TITLE
Head of Sales for EMEA & APAC
TENURE
1.3 yrs

Kiran Zachariah

TITLE
Head of IoT Security
TENURE
1.3 yrs

Anshuman Saha

TITLE
VP & Global Head - Managed Services
TENURE
2.7 yrs

Renji George

TITLE
Head of Global Support
TENURE
4 yrs

Rohit Maheshwari

TITLE
Head of Product & Strategy
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure of the Subex board of directors in years:

2
Average Tenure
  • The average tenure for the Subex board of directors is less than 3 years, this suggests a new board.
Board of Directors

Anil Singhvi

TITLE
Chairman
COMPENSATION
₹3M
AGE
58
TENURE
1.9 yrs

Vinod Padmanabhan

TITLE
MD, CEO & Director
COMPENSATION
₹12M
AGE
48
TENURE
1.9 yrs

Nisha Dutt

TITLE
Independent Director
COMPENSATION
₹2M
TENURE
4.1 yrs

Poornima Prabhu

TITLE
Independent Director
COMPENSATION
₹2M
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Subex insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
22. Feb 19 Buy Renji George Individual 07. Feb 19 11. Feb 19 283,000 ₹5.97 ₹1,650,784
08. Oct 18 Sell Subash Menon Individual 01. Oct 18 01. Oct 18 -50,000 ₹4.98 ₹-248,999
01. Oct 18 Sell Subash Menon Individual 28. Sep 18 28. Sep 18 -125,000 ₹4.91 ₹-613,749
28. Sep 18 Sell Subash Menon Individual 27. Sep 18 27. Sep 18 -25,000 ₹5.05 ₹-126,250
27. Sep 18 Sell Subash Menon Individual 25. Sep 18 26. Sep 18 -300,000 ₹5.29 ₹-1,489,661
X
Management checks
We assess Subex's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Subex has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

532348 News

Simply Wall St News

532348 Company Info

Description

Subex Limited provides operations and business support systems to communication service providers (CSPs) worldwide. It offers revenue management solutions, including ROC Revenue Assurance, a solution used for the needs of mobile and fixed line CSPs, analog data networks, digital data service providers, and triple/quad play enterprises; and ROC Fraud Management solution that detects fraudulent activities on the network, and ensures the system gets integrated with the ecosystem by utilizing readily deployable interfaces. The company also provides network management solutions, which comprise ROC Network Asset Management solution that offers a framework to audit network assets, evaluate inventory, and makes a business case for network upgradation, as well as a view of network assets and inventory to optimize opex and capex; and ROC Capacity Management, a solution, which gleans insights from network capacity trends, correlates capacity issues, simulates congestion points due to external events, and forecasts lead time for capacity exhaustion scenarios. In addition, it provides partner management solutions consisting of ROC Partner Management, a solution that facilitates in swift partner onboarding, partner self-care, revenue visibility, and communication between the company and its partners; ROC Route Optimization solution, which processes from dial code/destination operator rate imports to switch updates, and offers visibility and control of critical processes; and ROC Partner Settlement, a solution that provides a view of interconnect agreements in managing revenue and margins across the partner ecosystem. Further, Subex Limited provides Internet of Things security, a solution for security coverage from real-time discovery and monitoring to response and recovery. The company was formerly known as Subex Azure Limited and changed its name to Subex Limited in December 2007. Subex Limited was founded in 1992 and is headquartered in Bengaluru, India.

Details
Name: Subex Limited
532348
Exchange: BSE
Founded: 1992
₹4,085,761,337
562,002,935
Website: http://www.subex.com
Address: Subex Limited
RMZ Ecoworld,
Devarabisanahalli,
Bengaluru,
Karnataka, 560103,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532348 Equity Shares Mumbai Stock Exchange IN INR 13. Nov 2002
NSEI SUBEX Equity Shares National Stock Exchange of India IN INR 13. Nov 2002
LSE SUBX GDR REG S London Stock Exchange GB USD 03. May 2006
Number of employees
Current staff
Staff numbers
905
Subex employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 12:33
End of day share price update: 2019/04/18 00:00
Last earnings filing: 2019/01/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.