Primech Holdings (PMEC) Fundamental Analysis: Revenue, Earnings & Valuation

8.84 / 10

Outperform

PMEC's fundamental analysis scores 8.8/10, highlighting robust asset-to-market value, net income relative to revenue, and equity multiplier ratios. The company's net profit attributable to shareholders is strong at 87.48%, contributing to an Outperform rating. Nevertheless, concerns arise from low current assets as a percentage of total assets (70.4%) and weak net cash flow from operating activities relative to revenue (9.93%), which temper the otherwise positive outlook. These factors indicate solid profitability but highlight liquidity and cash-flow risks that investors should monitor.

Analysis Checks(5/10)

Net profit attributable to parent company shareholders / Net profit (%)

Value87.48

Score3/3

Weight14.29%

1M Return4.31%

Net cash flow from operating activities / Operating revenue (%)

Value9.93

Score1/3

Weight3.21%

1M Return1.00%

Net income-Revenue

Value-0.25

Score3/3

Weight20.96%

1M Return7.21%

Non-current assets / Total assets (%)

Value29.59

Score0/3

Weight-5.87%

1M Return-2.52%

Net cash flow from operating activities / Total liabilities (%)

Value0.28

Score0/3

Weight-5.52%

1M Return-2.42%

Asset-MV

Value-0.07

Score3/3

Weight38.88%

1M Return10.48%

Equity multiplier (DuPont analysis %)

Value2.90

Score2/3

Weight13.78%

1M Return4.15%

Current assets / Total assets (%)

Value70.41

Score0/3

Weight-7.42%

1M Return-3.23%

Current ratio

Value1.39

Score3/3

Weight28.73%

1M Return8.33%

Net profit / Total profit (%)

Value125.85

Score1/3

Weight-1.04%

1M Return-0.39%

Is PMEC undervalued or overvalued?

PMEC scores 8.84/10 on fundamentals and holds a Discounted valuation at present. Backed by its -13.06% ROE, -2.99% net margin, -15.83 P/E ratio, 2.09 P/B ratio, and 50.00% earnings growth, these metrics solidify its Outperform investment rating.