J.G. Chemicals Limited Fundamental Analysis
J.G. Chemicals Limited (JGCHEM.NS) shows weak financial fundamentals with a PE ratio of 26.27, profit margin of 6.75%, and ROE of 13.44%. The company generates $9.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze JGCHEM.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentJGCHEM.NS demonstrates superior asset utilization.
Valuation Score
WeakJGCHEM.NS trades at a premium to fair value.
Growth Score
ModerateJGCHEM.NS shows steady but slowing expansion.
Financial Health Score
ExcellentJGCHEM.NS maintains a strong and stable balance sheet.
Profitability Score
WeakJGCHEM.NS struggles to sustain strong margins.
Key Financial Metrics
Is JGCHEM.NS Expensive or Cheap?
P/E Ratio
JGCHEM.NS trades at 26.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, JGCHEM.NS's PEG of 9.76 indicates potential overvaluation.
Price to Book
The market values J.G. Chemicals Limited at 3.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.16 times EBITDA. This signals the market has high growth expectations.
How Well Does JGCHEM.NS Make Money?
Net Profit Margin
For every $100 in sales, J.G. Chemicals Limited keeps $6.75 as profit after all expenses.
Operating Margin
Core operations generate 8.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.44 in profit for every $100 of shareholder equity.
ROA
J.G. Chemicals Limited generates $11.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
J.G. Chemicals Limited generates limited operating cash flow of $328.64M, signaling weaker underlying cash strength.
Free Cash Flow
J.G. Chemicals Limited generates weak or negative free cash flow of $20.63M, restricting financial flexibility.
FCF Per Share
Each share generates $0.53 in free cash annually.
FCF Yield
JGCHEM.NS converts 0.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
18.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How JGCHEM.NS Stacks Against Its Sector Peers
| Metric | JGCHEM.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.27 | 25.84 | Neutral |
| ROE | 13.44% | 1029.00% | Weak |
| Net Margin | 6.75% | -107065.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 18.64 | 6.25 | Strong Liquidity |
| ROA | 11.57% | -5614.00% (disorted) | Strong |
JGCHEM.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews J.G. Chemicals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value