Check Before You Invest : WAA Solar Ltd

Snapshot

Q.1 Which industry/sub-sector does WAA Solar Ltd belong to?

WAA Solar Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is WAA Solar Ltd a good quality company?

WAA Solar Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is WAA Solar Ltd undervalued or overvalued?

WAA Solar Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is WAA Solar Ltd a good buy now?

WAA Solar Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of WAA Solar Ltd?

WAA Solar Ltd revenue growth is 6% for FY-2025, which is above its 5-year CAGR of 2.04%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of WAA Solar Ltd?

WAA Solar Ltd Return on capital employed is 2.37% for FY-2025, which is below its 5-year historical median of 5.27%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of WAA Solar Ltd?

WAA Solar Ltd Return on Asset is 0.46%, which is below its 5-year historical median of 1.99%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of WAA Solar Ltd?

WAA Solar Ltd Return on equity is 0.67% for FY-2025, which is below its 5-year historical median of 2.44%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of WAA Solar Ltd?

WAA Solar Ltd Cash conversion cycle is 24 days, above its 5-year historical median of -22 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.1	0.1
ROE	0.67	2.44
ROCE	2.37	5.27
Cash Conversion Cycle	24 days	-22 days

Q.6 Gross Profit margin of WAA Solar Ltd?

WAA Solar Ltd Gross profit margin which is the profit after deduction of direct costs, is 18% for FY-2025, which is below its 5-year median of 59.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of WAA Solar Ltd?

WAA Solar Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 36.03% for FY-2025, which is below its 5-year median of 81.47% indicating decreasing margins.

Q.8 Net Profit Margin of WAA Solar Ltd?

WAA Solar Ltd Net Profit Margin is 4.41% for FY-2025, is below with its 5-year median of 16.89%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	18	59.8
Operating Profit Margin	36.03	81.47
Net Profit Margin	4.41	16.89

Q.9 Debt to Equity ratio of WAA Solar Ltd?

WAA Solar Ltd Debt-to-Equity ratio is 0.64, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of WAA Solar Ltd?

WAA Solar Ltd Debt to cash flow from operations is -32.52, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of WAA Solar Ltd?

Promoters hold 67.86% of the WAA Solar Ltd, with 75.16% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of WAA Solar Ltd vs industry peers?

WAA Solar Ltd revenue CAGR is 2.04%, compared to the industry median CAGR of 0.59%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	6	0.6
Gross Profit Growth	-65.6	-0.1
Operating Profit Growth	-58.8	NAN
Net Profit Growth	-72.3	-3.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.1	0.13
ROE	0.67	2.44
ROCE	2.37	4.39
Cash Conversion Cycle (days)	23.62	63

Valuation & price assessment

Q.1 Stock return of WAA Solar Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 8.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	8.4%	20.4%	-15.9%

Q.3 Valuation ratios of WAA Solar Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	70	19.06	27.19
Price to Book	0.46	0.42	1.80
Price to Sales	3.09	2.96	6.78
EV to EBITDA	16.59	6.45	13.53

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