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PMECPrimech Holdings Ltd. Ordinary Shares
$0.67$26M
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Primech Holdings Ltd. Ordinary Shares (PMEC) Financial Ratios

Latest Ratios: P/E Ratio -12.8x · EV/EBITDA 9.4x · ROE -13.1%. (2020–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

PMEC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Market Cap$26M$29M$44M————
Enterprise Value$31M$34M$57M————
P/E Ratio →-12.75——————
P/S Ratio0.350.390.60————
P/B Ratio1.691.962.91————
P/FCF4.094.57—————
P/OCF3.483.89—————

P/E links to full P/E history page with 30-year chart

PMEC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
EV / Revenue—0.460.78————
EV / EBITDA9.4210.3352.21————
EV / EBIT———————
EV / FCF—5.42—————

PMEC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Gross Margin23.6%23.6%17.4%15.4%18.1%25.8%11.7%
Operating Margin-0.9%-0.9%-3.8%-3.0%-2.2%12.0%1.5%
Net Profit Margin-2.6%-2.6%-4.5%-3.7%-2.3%11.2%0.6%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
ROE-13.1%-13.1%-27.1%-25.2%-10.1%41.8%2.5%
ROA-4.5%-4.5%-7.3%-6.7%-4.0%20.7%1.4%
ROIC-2.1%-2.1%-8.3%-7.8%-5.7%30.9%3.8%
ROCE-3.2%-3.2%-13.5%-10.8%-6.2%35.8%5.4%

PMEC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Debt / Equity1.051.051.382.531.070.550.39
Debt / EBITDA4.694.6919.0814.426.510.871.85
Net Debt / Equity—0.360.871.500.610.040.15
Net Debt / EBITDA1.621.6212.068.573.720.060.71
Debt / FCF—0.85——2.760.211.46
Interest Coverage-1.24-1.24-2.25-2.54-1.9828.563.11

PMEC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Current Ratio1.391.391.381.121.512.141.96
Quick Ratio1.391.391.381.111.502.101.96
Cash Ratio0.490.490.340.370.410.660.32
Asset Turnover—1.801.591.611.641.662.09
Inventory Turnover1291.431291.431089.36412.98309.3383.41—
Days Sales Outstanding—84.0499.7590.1573.59101.12109.77

PMEC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Dividend Yield———————
Payout Ratio—————8.2%5.2%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Earnings Yield———————
FCF Yield24.4%21.9%—————
Buyback Yield0.0%0.0%0.0%————
Total Shareholder Yield0.0%0.0%0.0%————
Shares Outstanding—$37M$34M$36M$36M$36M$36M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Rising leverage and insolvency

Market Skepticism Reflects Operational Hurdles

According to current market data, PMEC trades at a P/S ratio of 0.35 and a negative P/E, suggesting that investors are heavily discounting the firm's future earnings potential due to persistent net losses and the lack of a clear path toward sustainable profitability in the near term.

The negative P/E ratio underscores the market's focus on the company's inability to generate bottom-line growth, contrasting sharply with the higher multiples commanded by more established industry peers like Cintas. This valuation gap appears to be a direct consequence of the firm's struggle to scale its facilities management services profitably within the highly competitive Singaporean market.

Persistent Decay in Capital Returns

Based on reported financial figures, PMEC's ROIC has remained consistently negative, bottoming out at -22.0% in 2021Q4 and showing little evidence of structural improvement, which indicates that the company is currently destroying shareholder value rather than compounding it through its core operational activities.

The persistent negative ROIC suggests that the capital deployed into the business is failing to generate returns above the cost of capital, a trend that warrants significant concern for long-term investors. This decay in returns appears to be driven by the company's inability to maintain positive operating margins despite its vertical integration efforts.

Working Capital Friction Hinders Liquidity

As reported in quarterly filings, PMEC's cash conversion cycle has fluctuated wildly, reaching as high as 120 days in 2021Q4, which highlights significant inefficiencies in receivables management and suggests that the company's liquidity is frequently tied up in slow-moving operational cycles rather than cash.

The volatility in the cash conversion cycle indicates that the firm lacks the leverage to dictate favorable payment terms with its public sector clients, leading to lumpy cash inflows. This operational friction likely exacerbates the company's reliance on external debt to fund its day-to-day working capital requirements.

Debt Escalation Threatens Financial Stability

According to recent balance sheet data, PMEC's debt-to-equity ratio has surged to 2.53 as of 2023Q4, signaling a rapid deterioration in financial health as the company increasingly relies on debt financing to offset persistent operational losses and sustain its current corporate structure.

The sharp increase in leverage, coupled with negative interest coverage ratios, suggests that the company may face significant refinancing risks if its operational performance does not improve. Investors should monitor the firm's ability to service this debt, as the current trajectory appears unsustainable without a material shift in profitability.

Misapplied Focus on Revenue Growth

Market participants often misapply revenue growth as a primary indicator of success for PMEC, failing to recognize that in this low-margin, labor-intensive model, top-line expansion without corresponding margin improvement serves only to accelerate the consumption of cash and the accumulation of debt-related risks.

Focusing on revenue growth obscures the underlying reality that the company's cost structure is highly sensitive to regulatory wage hikes, making volume growth potentially value-destructive. A more appropriate metric for this business model would be the 'Operating Margin per Employee' or 'Contract-Level Contribution Margin,' which would better reveal the true earning power of the firm's service contracts.

Download Financial Ratios Data

Includes 30+ ratios · 6 years · Updated daily

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PMEC — Frequently Asked Questions

Quick answers to the most common questions about buying PMEC stock.

What is Primech Holdings Ltd. Ordinary Shares's P/E ratio?

Primech Holdings Ltd. Ordinary Shares's current P/E ratio is -12.8x. This places it at the 50th percentile of its historical range.

What is Primech Holdings Ltd. Ordinary Shares's EV/EBITDA?

Primech Holdings Ltd. Ordinary Shares's current EV/EBITDA is 9.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 31.3x.

What is Primech Holdings Ltd. Ordinary Shares's ROE?

Primech Holdings Ltd. Ordinary Shares's return on equity (ROE) is -13.1%. The historical average is -5.2%.

Is PMEC stock overvalued?

Based on historical data, Primech Holdings Ltd. Ordinary Shares is trading at a P/E of -12.8x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Primech Holdings Ltd. Ordinary Shares's profit margins?

Primech Holdings Ltd. Ordinary Shares has 23.6% gross margin and -0.9% operating margin.

How much debt does Primech Holdings Ltd. Ordinary Shares have?

Primech Holdings Ltd. Ordinary Shares's Debt/EBITDA ratio is 4.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.