Loading...

Newgen Software Technologies

NSEI:NEWGEN
Snowflake Description

Outstanding track record with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NEWGEN
NSEI
₹23B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Newgen Software Technologies Limited provides software products and solutions in India, Europe, the Middle East, Africa, the Asia Pacific, and the United States. The last earnings update was 91 days ago. More info.


Add to Portfolio Compare Print
NEWGEN Share Price and Events
7 Day Returns
-8.8%
NSEI:NEWGEN
-1.3%
IN Software
-1%
IN Market
1 Year Returns
39.1%
NSEI:NEWGEN
-20.4%
IN Software
-1.6%
IN Market
NEWGEN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Newgen Software Technologies (NEWGEN) -8.8% 5.5% 12% 39.1% - -
IN Software -1.3% 3.4% -2% -20.4% -4.6% 29.6%
IN Market -1% 3% 6.2% -1.6% 39% 73%
1 Year Return vs Industry and Market
  • NEWGEN outperformed the Software industry which returned -20.4% over the past year.
  • NEWGEN outperformed the Market in India which returned -1.6% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

NEWGEN Value

 Is Newgen Software Technologies 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 Newgen Software Technologies 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 Newgen Software Technologies.

NSEI:NEWGEN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) 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 NSEI:NEWGEN
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 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.137 (1 + (1- 35%) (3.19%))
1.108
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.108 * 8.6%)
17.07%

Discounted Cash Flow Calculation for NSEI:NEWGEN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Newgen Software Technologies 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.

NSEI:NEWGEN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.07%)
2019 507.40 Analyst x1 433.40
2020 724.20 Analyst x1 528.36
2021 880.43 Est @ 21.57% 548.67
2022 1,033.33 Est @ 17.37% 550.03
2023 1,182.35 Est @ 14.42% 537.57
2024 1,328.49 Est @ 12.36% 515.92
2025 1,473.52 Est @ 10.92% 488.78
2026 1,619.51 Est @ 9.91% 458.86
2027 1,768.50 Est @ 9.2% 428.00
2028 1,922.44 Est @ 8.7% 397.40
Present value of next 10 years cash flows ₹4,886.99
NSEI:NEWGEN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹1,922.44 × (1 + 7.55%) ÷ (17.07% – 7.55%)
₹21,707.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹21,707.77 ÷ (1 + 17.07%)10
₹4,487.32
NSEI:NEWGEN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹4,886.99 + ₹4,487.32
₹9,374.31
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹9,374.31 / 68.23
₹137.38
NSEI:NEWGEN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:NEWGEN represents 1.00469x of BSE:540900
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00469x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 137.38 x 1.00469
₹138.03
Value per share (INR) From above. ₹138.03
Current discount Discount to share price of ₹332.20
= -1 x (₹332.20 - ₹138.03) / ₹138.03
-140.7%

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

  • The current share price of Newgen Software Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Newgen Software Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Newgen Software Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:NEWGEN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹14.66
BSE:540900 Share Price ** BSE (2019-04-25) in INR ₹330.65
India Software Industry PE Ratio Median Figure of 48 Publicly-Listed Software Companies 15.2x
India Market PE Ratio Median Figure of 2,739 Publicly-Listed Companies 16.05x

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

** Primary Listing of Newgen Software Technologies.

NSEI:NEWGEN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:540900 Share Price ÷ EPS (both in INR)

= 330.65 ÷ 14.66

22.55x

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

  • Newgen Software Technologies is overvalued based on earnings compared to the IN Software industry average.
  • Newgen Software Technologies is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Newgen Software Technologies's expected growth come at a high price?
Raw Data
NSEI:NEWGEN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
23.4%per year
India Software Industry PEG Ratio Median Figure of 9 Publicly-Listed Software Companies 0.96x
India Market PEG Ratio Median Figure of 586 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:NEWGEN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.55x ÷ 23.4%

0.96x

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

  • Newgen Software Technologies is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Newgen Software Technologies's assets?
Raw Data
NSEI:NEWGEN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹61.24
BSE:540900 Share Price * BSE (2019-04-25) in INR ₹330.65
India Software Industry PB Ratio Median Figure of 66 Publicly-Listed Software Companies 1.14x
India Market PB Ratio Median Figure of 3,630 Publicly-Listed Companies 1.09x
NSEI:NEWGEN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:540900 Share Price ÷ Book Value per Share (both in INR)

= 330.65 ÷ 61.24

5.4x

* Primary Listing of Newgen Software Technologies.

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

  • Newgen Software Technologies is overvalued based on assets compared to the IN Software industry average.
X
Value checks
We assess Newgen Software Technologies'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. Newgen Software Technologies has a total score of 1/6, 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.

NEWGEN Future Performance

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

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
23.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Newgen Software Technologies expected to grow at an attractive rate?
  • Newgen Software Technologies's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Newgen Software Technologies's earnings growth is expected to exceed the India market average.
  • Newgen Software Technologies's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:NEWGEN Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:NEWGEN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 23.4%
NSEI:NEWGEN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 18.9%
India Software Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
India Software Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
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
NSEI:NEWGEN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:NEWGEN Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 9,371 902 1,659 1
2020-03-31 7,690 1,059 1,135 3
2019-03-31 6,485 514 981 3
NSEI:NEWGEN Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 6,005 992
2018-09-30 5,613 898
2018-06-30 5,303 783
2018-03-31 5,124 602 729
2017-03-31 4,271 359 513
2016-03-31 3,468 111 259

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Newgen Software Technologies's earnings are expected to grow significantly at over 20% yearly.
  • Newgen Software Technologies's revenue is expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).
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
NSEI:NEWGEN 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 3 Analyst Estimates (S&P Global) See Below

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

NSEI:NEWGEN Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 24.40 24.40 24.40 1.00
2020-03-31 16.68 20.60 12.75 2.00
2019-03-31 14.44 18.10 10.78 2.00
NSEI:NEWGEN Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 14.66
2018-09-30 13.55
2018-06-30 12.02
2018-03-31 11.44
2017-03-31 8.26
2016-03-31 5.40

*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.
  • Newgen Software Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Newgen Software Technologies'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.
Newgen Software Technologies has a total score of 5/6, 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.

NEWGEN Past Performance

  How has Newgen Software Technologies 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 Newgen Software Technologies'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.
  • Newgen Software Technologies's year on year earnings growth rate has been positive over the past 5 years.
  • Newgen Software Technologies's 1-year earnings growth exceeds its 5-year average (46.7% vs 19.9%)
  • Newgen Software Technologies's earnings growth has exceeded the IN Software industry average in the past year (46.7% vs 21.7%).
Earnings and Revenue History
Newgen Software Technologies'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 Newgen Software Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:NEWGEN 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 6,005.02 991.53 222.51
2018-09-30 5,613.11 897.51 222.51
2018-06-30 5,303.09 782.51
2018-03-31 5,124.28 728.87 222.51
2017-03-31 4,270.98 513.30 189.67
2016-03-31 3,468.06 259.49 167.09
2015-03-31 3,084.64 448.65 151.45
2014-03-31 2,484.48 402.71 109.28
2013-03-31 2,011.28 366.31 79.26

*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.
  • Newgen Software Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Newgen Software Technologies used its assets more efficiently than the IN Software industry average last year based on Return on Assets.
  • Newgen Software Technologies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Newgen Software Technologies'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.
Newgen Software Technologies has a total score of 6/6, 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.

NEWGEN Health

 How is Newgen Software Technologies'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 Newgen Software Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Newgen Software Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Newgen Software Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Newgen Software Technologies'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 6.7x 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 Newgen Software Technologies Company Filings, last reported 3 months ago.

NSEI:NEWGEN Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,153.90 719.20 2,198.00
2018-09-30 4,153.90 719.20 2,198.00
2018-06-30 4,052.23 626.29 2,474.76
2018-03-31 4,052.23 656.52 1,957.04
2017-03-31 2,499.44 714.64 835.79
2016-03-31 2,293.44 588.32 686.00
2015-03-31 2,113.87 445.84 784.58
2014-03-31 1,736.13 392.26 792.16
2013-03-31 1,167.26 0.06 134.01
  • Newgen Software Technologies's level of debt (17.3%) 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 (18.6% vs 17.3% today).
  • Debt is well covered by operating cash flow (83.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 40.1x coverage).
X
Financial health checks
We assess Newgen Software Technologies'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. Newgen Software Technologies 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.

NEWGEN Dividends

 What is Newgen Software Technologies'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
0.6%
Current annual income from Newgen Software Technologies dividends. Estimated to be 1.18% next year.
If you bought ₹2,000 of Newgen Software Technologies shares you are expected to receive ₹12 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?
  • Newgen Software Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
  • Newgen Software Technologies's dividend is below the markets top 25% of dividend payers in India (1.95%).
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
NSEI:NEWGEN 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 3 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 1399 Stocks 1.4%
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.

NSEI:NEWGEN Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 4.50 1.00
2020-03-31 3.60 2.00
2019-03-31 3.00 2.00
NSEI:NEWGEN Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-05-17 2.000 0.742
2018-01-29 1.500 0.626

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

  • It is too early to tell whether Newgen Software Technologies has stable dividend payments.
  • Newgen Software Technologies only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Newgen Software Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
X
Income/ dividend checks
We assess Newgen Software Technologies'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 Newgen Software Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Newgen Software Technologies has a total score of 3/6, see the detailed checks below.


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

NEWGEN Management

 What is the CEO of Newgen Software Technologies'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
Diwakar Nigam
COMPENSATION ₹16,034,680
AGE 63
TENURE AS CEO 3.6 years
CEO Bio

Mr. Diwakar Nigam co-founded Newgen Software Technologies Limited in 1992 and serves as its Managing Director and served as its Chief Executive Officer until October 05, 2017. Mr. Nigam has been an active player at the national software level by being a founder member of NASSCOM (National Association of Software companies). Under, his dynamic leadership, a team of highly qualified software professionals develops software, which is totally indigenous. Mr. Nigam along with a few colleagues, had incorporated Softek Limited in 1978, a product development company specializing in Compilers, Operating System, Office Productivity tools, etc. He also had short stint working in the Software R&D of HCL since 1976 until 1978. He serves as Chairman of the Board at Newgen Software Technologies Limited since October 05, 2017. He is member of Anti Piracy Task Group formed by NASSCOM. Mr. Nigam is M.Tech. in Computers Science from the Indian Institute of Technology, Madras, of the 1976 batch.

CEO Compensation
  • Diwakar's compensation has increased by more than 20% in the past year.
  • Diwakar's remuneration is about average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Newgen Software Technologies management team in years:

2.5
Average Tenure
53.5
Average Age
  • The tenure for the Newgen Software Technologies management team is about average.
Management Team

Diwakar Nigam

TITLE
Co-Founder
COMPENSATION
₹16M
AGE
63
TENURE
3.6 yrs

T. Varadarajan

TITLE
Co-Founder & Whole-Time Director
COMPENSATION
₹8M
AGE
66
TENURE
27.3 yrs

Arun Gupta

TITLE
Chief Financial Officer
AGE
49
TENURE
1.5 yrs

Aman Mourya

TITLE
Company Secretary & Compliance Officer

Virender Jeet

TITLE
Senior Vice-President of Sales & Marketing / Products
AGE
49
TENURE
1.5 yrs

Surender Raj

TITLE
Senior Vice President of Human Resources Operations
AGE
61
TENURE
13 yrs

Priyadarshini Nigam

TITLE
Whole-Time Director
COMPENSATION
₹4M

Tarun Nandwani

TITLE
Vice-President of Customer Relations / Delivery
AGE
46
TENURE
1.5 yrs

R. Kumar

TITLE
Vice President
AGE
49

Dushyant Kumar

TITLE
Vice President
AGE
58
Board of Directors Tenure

Average tenure and age of the Newgen Software Technologies board of directors in years:

1.7
Average Tenure
63
Average Age
  • The average tenure for the Newgen Software Technologies board of directors is less than 3 years, this suggests a new board.
Board of Directors

Diwakar Nigam

TITLE
Co-Founder
COMPENSATION
₹16M
AGE
63
TENURE
1.8 yrs

T. Varadarajan

TITLE
Co-Founder & Whole-Time Director
COMPENSATION
₹8M
AGE
66

Priyadarshini Nigam

TITLE
Whole-Time Director
COMPENSATION
₹4M
TENURE
21.6 yrs

Kaushik Dutta

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
56
TENURE
1.5 yrs

Subramaniam Iyer

TITLE
Non-Executive Independent Director
COMPENSATION
₹700K
AGE
59
TENURE
1.4 yrs

Saurabh Srivastava

TITLE
Non-Executive Independent Director
COMPENSATION
₹700K
AGE
71
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • Newgen Software Technologies insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
26. Feb 19 Sell Atul Pharasi Individual 05. Feb 19 25. Feb 19 -3,501 ₹299.50 ₹-1,029,712
01. Feb 19 Sell Abhishek Sharan Individual 30. Jan 19 30. Jan 19 -6,326 ₹288.48 ₹-1,824,925
23. Nov 18 Sell Atul Pharasi Individual 22. Nov 18 22. Nov 18 -395 ₹330.00 ₹-130,350
23. Nov 18 Sell Atul Pharasi Individual 16. Oct 18 13. Nov 18 -3,874 ₹258.00 ₹-959,853
16. Nov 18 Sell Prashant Sahai Individual 06. Nov 18 06. Nov 18 -3,141 ₹260.00 ₹-816,668
16. Nov 18 Sell Prashant Sahai Individual 14. Nov 18 14. Nov 18 -6,859 ₹297.40 ₹-2,039,889
31. Oct 18 Sell Mohd. Suhail Individual 29. Oct 18 30. Oct 18 -8,600 ₹252.00 ₹-2,160,418
31. Oct 18 Sell Mohd. Suhail Individual 16. Oct 18 30. Oct 18 -8,800 ₹252.00 ₹-2,208,474
15. Oct 18 Sell Prashant Sahai Individual 12. Oct 18 12. Oct 18 -5,000 ₹235.28 ₹-1,176,397
22. Aug 18 Sell Sheri Chander Individual 20. Aug 18 20. Aug 18 -5,500 ₹240.00 ₹-1,320,000
22. Aug 18 Buy Sheri Chander Individual 11. Jul 18 11. Jul 18 2,500 ₹239.95 ₹599,875
31. Jul 18 Sell M. Meiyappan Individual 06. Jul 18 30. Jul 18 -6,660 ₹245.46 ₹-1,586,206
31. Jul 18 Sell M. Meiyappan Individual 06. Jul 18 30. Jul 18 -5,623 ₹245.46 ₹-1,339,669
31. Jul 18 Sell M. Meiyappan Individual 06. Jul 18 30. Jul 18 -6,660 ₹245.46 ₹-1,586,205
13. Jul 18 Buy Ramendra Tiwari Individual 02. Jul 18 10. Jul 18 8,233 ₹243.39 ₹1,962,787
22. Jun 18 Sell Ramendra Tiwari Individual 31. May 18 19. Jun 18 -4,907 ₹267.83 ₹-1,266,622
22. Jun 18 Buy Ramendra Tiwari Individual 04. Jun 18 19. Jun 18 3,673 ₹257.21 ₹897,875
28. May 18 Sell Newgen Esop Trust Company 24. May 18 24. May 18 -50,630 ₹63.00 ₹-3,189,687
22. May 18 Sell Ashish Shukla Individual 30. Apr 18 18. May 18 -5,000 ₹270.00 ₹-1,307,029
03. May 18 Sell Ramendra Tiwari Individual 30. Apr 18 30. Apr 18 -11,036 ₹260.00 ₹-2,807,250
X
Management checks
We assess Newgen Software Technologies'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. Newgen Software Technologies 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.

NEWGEN News

Simply Wall St News

Newgen Software Technologies Limited (NSE:NEWGEN) Is Employing Capital Very Effectively

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Newgen Software Technologies Limited (NSE:NEWGEN) Insiders Have Been Selling

So before you buy or sell Newgen Software Technologies Limited (NSE:NEWGEN), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Newgen Software Technologies. … In total, Newgen Software Technologies insiders sold more than they bought over the last year

Simply Wall St -

These Factors Make Newgen Software Technologies Limited (NSE:NEWGEN) An Interesting Investment

Newgen Software Technologies Limited (NSE:NEWGEN) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of NEWGEN, it

Simply Wall St -

Investors Who Bought Newgen Software Technologies Shares A Year Ago Are Now Up 23%

To wit, the Newgen Software Technologies Limited (NSE:NEWGEN) share price is 23% higher than it was a year ago, much better than the market return of around -7.8% (not including dividends) in the same period. … We'll need to follow Newgen Software Technologies for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. … During the last year Newgen Software Technologies grew its earnings per share (EPS) by 38%.

Simply Wall St -

Can Newgen Software Technologies Limited's (NSE:NEWGEN) ROE Continue To Surpass The Industry Average?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Newgen Software Technologies Limited (NSE:NEWGEN). … Our data shows Newgen Software Technologies has a return on equity of 24% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Newgen Software Technologies Limited (NSE:NEWGEN): Has Recent Earnings Growth Beaten Long-Term Trend?

After reading Newgen Software Technologies Limited's (NSE:NEWGEN) latest earnings update (31 December 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … I also like to compare against an industry benchmark to understand whether NEWGEN has outperformed, or whether it is simply riding an industry wave. … Check out our latest analysis for Newgen Software Technologies?

Simply Wall St -

What Does Newgen Software Technologies Limited's (NSE:NEWGEN) P/E Ratio Tell You?

We'll look at Newgen Software Technologies Limited's (NSE:NEWGEN) P/E ratio and reflect on what it tells us about the company's share price. … Newgen Software Technologies has a P/E ratio of 21.79, based on the last twelve months. … How Do You Calculate Newgen Software Technologies's P/E Ratio

Simply Wall St -

Before Investing In Newgen Software Technologies Limited (NSE:NEWGEN), Consider This

If you are currently a shareholder in Newgen Software Technologies Limited (NSE:NEWGEN), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Newgen Software Technologies’s cash flow, which will help you understand the stock from a cash standpoint. … Newgen Software Technologies generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating.

Simply Wall St -

What Do You Get For Owning Newgen Software Technologies Limited (NSE:NEWGEN)?

and want a simplistic look at the return on Newgen Software Technologies Limited (NSE:NEWGEN) stock. … Therefore, looking at how efficiently Newgen Software Technologies is able to use capital to create earnings will help us understand your potential return. … Calculating Return On Capital Employed for NEWGEN

Simply Wall St -

Is Newgen Software Technologies Limited (NSE:NEWGEN) Potentially Underrated?

Newgen Software Technologies Limited (NSE:NEWGEN) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … is a company with great financial health as well as a.

Simply Wall St -

NEWGEN Company Info

Description

Newgen Software Technologies Limited provides software products and solutions in India, Europe, the Middle East, Africa, the Asia Pacific, and the United States. It offers enterprise content management suite, which enables end-to-end management of enterprise content, from capture to disposition; business process management suite that provides a platform for business stakeholders to drive enterprise-wide digital transformation; customer communication management suite, a communication platform that enables to share of customers’ wallet by tapping various cross-sell/ up-sell opportunities across touch points, such as e-mail, SMS, Web, and print; document management system; and workflow and process automation software. It serves banks, insurance firms, BPO’s, healthcare organizations, government, telecom companies, and shared service centers. The company was founded in 1992 and is based in New Delhi, India.

Details
Name: Newgen Software Technologies Limited
NEWGEN
Exchange: NSEI
Founded: 1992
₹22,561,610,786
68,234,117
Website: http://www.newgensoft.com
Address: Newgen Software Technologies Limited
A-6, Satsang Vihar Marg,
Qutab Institutional Area,
New Delhi,
Delhi, 110 067,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 540900 Equity Shares Mumbai Stock Exchange IN INR 29. Jan 2018
NSEI NEWGEN Equity Shares National Stock Exchange of India IN INR 29. Jan 2018
Number of employees
Current staff
Staff numbers
2,600
Newgen Software Technologies employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 13:49
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/02/11
Last earnings filing: 2019/01/24
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.