Fact based stock research
Mahindra & Mahindra Financial Services (NSEI:M&MFIN)

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Mahindra & Mahindra Financial Services stock research in summary

mahindrafinance.com

ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), Mahindra & Mahindra Financial Services (Consumer Finance, India) shares have lower financial characteristics compared with similar stocks. Shares of Mahindra & Mahindra Financial Services are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives), show below-average growth (Growth Rank of 43), and are riskily financed (Safety Rank of 12), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on Mahindra & Mahindra Financial Services's financial characteristics. As the company Mahindra & Mahindra Financial Services's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 49), low growth (Obermatt Growth Rank of 43), and risky financing practices (Obermatt Safety Rank of 12), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	49
Growth Rank	43
Safety Rank	12
Combined Rank	12

Country	India
Industry	Consumer Finance
Index	Good Governace Growth Markets, Independent Boards Growth Markets
Size class	Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Mahindra & Mahindra Financial Services

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	43	47	49
GROWTH
GROWTH	19	31	43	43
SAFETY
SAFETY	20	66	21	12
SENTIMENT
SENTIMENT	n/a	41	3	^new
360° VIEW
360° VIEW	n/a	27	1	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-Mar-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Mahindra & Mahindra Financial Services is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	43	47	49
GROWTH
GROWTH	19	31	43	43
SAFETY
SAFETY	20	66	21	12
COMBINED
COMBINED	7	45	12	12

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Mahindra & Mahindra Financial Services the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), Mahindra & Mahindra Financial Services shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Mahindra & Mahindra Financial Services. Price-to-Sales (P/S) is 51, which means that the stock price compared with what market professionals expect for future sales is lower than 51% of comparable companies, indicating a good value concerning to Mahindra & Mahindra Financial Services's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 46, meaning that dividends are expected to be lower than for 54% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 52% of alternatives (only 48% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 55% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on Mahindra & Mahindra Financial Services's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Mahindra & Mahindra Financial Services could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Mahindra & Mahindra Financial Services looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	84	43	41	51
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	53	35	45
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	62	48	43	48
DIVIDEND YIELD
DIVIDEND YIELD	30	36	42	46
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	42	43	47	49

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Mahindra & Mahindra Financial Services; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Mahindra & Mahindra Financial Services shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Mahindra & Mahindra Financial Services. Sales Growth has a rank of 79, which means that, currently, professionals expect the company to grow more than 79% of its competitors. Profit Growth with a rank of 84 is also above average. But Capital Growth has only a rank of 16, and Stock Returns with 19 are also below-average. Stock returns for Mahindra & Mahindra Financial Services have recently been below 81% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Mahindra & Mahindra Financial Services. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	22	44	92	79
PROFIT GROWTH
PROFIT GROWTH	n/a	98	8	84
CAPITAL GROWTH
CAPITAL GROWTH	n/a	16	46	16
STOCK RETURNS
STOCK RETURNS	64	11	53	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19	31	43	43

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Mahindra & Mahindra Financial Services.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 12 (better than 12% compared with alternatives), the company Mahindra & Mahindra Financial Services has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Mahindra & Mahindra Financial Services is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Mahindra & Mahindra Financial Services and the other two below average. Refinancing is at 59, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. But Leverage is high with a rank of 16, meaning the company has an above-average debt-to-equity ratio. It has more debt than 84% of its competitors. Liquidity is also on the riskier side with a rank of 36, meaning the company generates less profit to service its debt than 64% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 12 (worse than 88% compared with alternatives), Mahindra & Mahindra Financial Services has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Mahindra & Mahindra Financial Services are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Mahindra & Mahindra Financial Services and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	8	28	16	16
REFINANCING
REFINANCING	64	69	56	59
LIQUIDITY
LIQUIDITY	19	74	55	36
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	20	66	21	12

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Mahindra & Mahindra Financial Services and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	44	23	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	82	48	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	34	29	^new
MARKET PULSE
MARKET PULSE	n/a	22	16	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	41	3	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Mahindra & Mahindra Financial Services.
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