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5409

Newgen Software TechnologiesBSE:540900 Stock Report

Market Cap

₹39.1b

7D

-5.2%

1Y

108.3%

Updated

28 Nov, 2021

Data

Company Financials +
540900 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends3/6

540900 Stock Overview

Newgen Software Technologies Limited, a software company, provides software products and solutions in India, Australia, Europe, the Middle East, Africa, the Asia Pacific, and the United States.

Price History & Performance

Summary of all time highs, changes and price drops for Newgen Software Technologies
Historical stock prices
Current Share Price₹563.45
52 Week High₹754.70
52 Week Low₹241.50
Beta1.11
1 Month Change-0.53%
3 Month Change-1.13%
1 Year Change108.26%
3 Year Change75.09%
5 Year Changen/a
Change since IPO122.71%

Recent News & Updates

Shareholder Returns

540900IN SoftwareIN Market
7D-5.2%-3.5%-3.3%
1Y108.3%106.3%43.0%

Return vs Industry: 540900 exceeded the Indian Software industry which returned 106.3% over the past year.

Return vs Market: 540900 exceeded the Indian Market which returned 43% over the past year.

Price Volatility

Is 540900's price volatile compared to industry and market?
540900 volatility
540900 Average Weekly Movement4.6%
Software Industry Average Movement6.8%
Market Average Movement6.1%
10% most volatile stocks in IN Market9.1%
10% least volatile stocks in IN Market3.8%

Stable Share Price: 540900 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 540900's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19922,969Virender Jeethttps://www.newgensoft.com

Newgen Software Technologies Limited, a software company, provides software products and solutions in India, Australia, Europe, the Middle East, Africa, the Asia Pacific, and the United States. The company offers enterprise content management software, which manages the end-to-end lifecycle of enterprise content, from origination to disposition; business process management software to streamline enterprise-wide workflows with process automation suite; and customer communication management software delivers communications by tapping various cross-sell/up-sell opportunities across touch points, such as email, SMS, web, and print. It serves various industries, which include financial institutions, insurance, healthcare, government, telecom, shared services, business process outsourcing, and other industries.

Newgen Software Technologies Fundamentals Summary

How do Newgen Software Technologies's earnings and revenue compare to its market cap?
540900 fundamental statistics
Market Cap₹39.05b
Earnings (TTM)₹1.47b
Revenue (TTM)₹7.31b

26.5x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
540900 income statement (TTM)
Revenue₹7.31b
Cost of Revenue₹3.72b
Gross Profit₹3.59b
Expenses₹2.11b
Earnings₹1.47b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)21.23
Gross Margin49.07%
Net Profit Margin20.14%
Debt/Equity Ratio0%

How did 540900 perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

16%

Payout Ratio

Valuation

Is Newgen Software Technologies undervalued compared to its fair value and its price relative to the market?

26.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540900 (₹563.45) is trading above our estimate of fair value (₹372.96)

Significantly Below Fair Value: 540900 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540900 is good value based on its PE Ratio (26.5x) compared to the Indian Software industry average (27.6x).

PE vs Market: 540900 is poor value based on its PE Ratio (26.5x) compared to the Indian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: 540900 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 540900 is overvalued based on its PB Ratio (5.6x) compared to the IN Software industry average (2.2x).


Future Growth

How is Newgen Software Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540900's forecast earnings growth (20% per year) is above the savings rate (6.7%).

Earnings vs Market: 540900's earnings (20% per year) are forecast to grow slower than the Indian market (20.2% per year).

High Growth Earnings: 540900's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540900's revenue (21.7% per year) is forecast to grow faster than the Indian market (12.7% per year).

High Growth Revenue: 540900's revenue (21.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540900's Return on Equity is forecast to be high in 3 years time (21.5%)


Past Performance

How has Newgen Software Technologies performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540900 has high quality earnings.

Growing Profit Margin: 540900's current net profit margins (20.1%) are higher than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: 540900's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: 540900's earnings growth over the past year (41.8%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: 540900 earnings growth over the past year (41.8%) underperformed the Software industry 48.5%.


Return on Equity

High ROE: 540900's Return on Equity (21%) is considered high.


Financial Health

How is Newgen Software Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 540900's short term assets (₹6.5B) exceed its short term liabilities (₹1.9B).

Long Term Liabilities: 540900's short term assets (₹6.5B) exceed its long term liabilities (₹480.9M).


Debt to Equity History and Analysis

Debt Level: 540900 is debt free.

Reducing Debt: 540900 has no debt compared to 5 years ago when its debt to equity ratio was 27.2%.

Debt Coverage: 540900 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 540900 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Newgen Software Technologies's current dividend yield, its reliability and sustainability?

0.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 540900's dividend (0.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: 540900's dividend (0.62%) is low compared to the top 25% of dividend payers in the Indian market (1.48%).


Stability and Growth of Payments

Stable Dividend: 540900 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 540900's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.5%), 540900's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 540900's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Virender Jeet (52 yo)

0.17

Tenure

₹26,840,316

Compensation

Mr. Virender Jeet has been a Chief Executive Officer at Newgen Software Technologies Ltd. since September 01, 2021 and served as its Senior Vice-President of Sales & Marketing of Products since October 05,...


Leadership Team

Experienced Management: 540900's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: 540900's board of directors are considered experienced (4.4 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

Newgen Software Technologies Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Newgen Software Technologies Limited
  • Ticker: 540900
  • Exchange: BSE
  • Founded: 1992
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: ₹39.050b
  • Shares outstanding: 69.31m
  • Website: https://www.newgensoft.com

Number of Employees


Location

  • Newgen Software Technologies Limited
  • A-6, Satsang Vihar Marg
  • Qutab Institutional Area
  • New Delhi
  • Delhi
  • 110 067
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/28 12:04
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
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.