Stock Analysis 4: Sembcorp Industries 2014 Full Year

Market Price (2015-1-26) = $4.25

Earnings
Approx. $0.443 (Up from $0.431)
Approx. DPS: $0.16 (Down from $0.17)
Payout Ratio: 36%

Ratios

P/E: 9.59 (5 year historical average 10.3, previously at 9.86)
Yield: 3.6% (Previously 4%)

Profitability

ROE: 15.2% [Avg for SG blue chips is 11.8%, previously 16.13%]
Asset Turnover: 0.704 [Avg for SG blue chips is ~0.5, previously 0.748]
Net Income Margin: 7.353 [Comparable]

Balance Sheet

Current Ratio: 1.14
Debt To Equity: 0.65
NAV: $3.15 (Up from $2.93 in previous year)

Additional Info

Biannual distributions in Apr/Aug. Profit contribution roughly 50% utilities, 50% marine.

Personal Opinion:

They cut dividend by 1 cent from the previous year, probably to retain more $ for tougher times ahead. I draw pretty much the same conclusion as previously - Utilities will remaining challenging, but will grow steadily with the strong pipeline of projects. Marine will be supported by its orderbook in the next few years.

Looking to accumulate if it hit lower 4s.

First Major Hoot of 2015 - New Mattress

As mentioned, I have been wanting to get a new mattress for some time.

My current one is likely ~20 years old, and I've been using it without a bed frame for a few years now. Recently, its effects seems to be getting more prominent.

For the past month or so, I have constantly woke up in the middle of the night, or in some weird hours like 630am. They are sometimes accompied by backache too. I guess I must be getting old.

Anyway, it finally made me grit my teeth and hoot a really good mattress. I think the health benefits will far outweigh the cost in the long run.

This is the 20 years-old mattress... the springs have came loose I think.

And some pictures of my new mattress!!!

With some specs according to advertisement:

- Individual Pocketed Spring (Support contour of entire body while maintaining spine in natural alignment)
- Triple Coil on Coil (3 level of active support)
- Anti Sag Perimeter (Increase sleeping surface with edge to edge support)
- Spinal Zone (Enhance lumbar and upper thigh support, alleviate back pain and stiffness)
- 3 inches of natural latex!

My Fundamental Analysis

This posts summarizes some of the most important financial ratios I look at when evaluating a company. Note that these are just general, quantitative guidelines. Much more work needs to be done in investing than comparing numbers.

S/N	Metric	Description	What I Consider Good
	Valuation
1	PE Ratio	Price / Earnings	< 20
2	Dividend Yield	DPS / Price	Consistent (4~7%). Use in conjunction with payout ratio.
3	PB Ratio	Price / NAV	0.7 – 1.5, highly dependent
4	P/E * P/B		< 22.5
5	Free Cash Flow Yield	FCF / Market Cap	> 5%
	Effectiveness
6	Gross Profit Margin	Gross Profit / Revenue	>15%
7	Net Profit Margin	Net Profit / Revenue	>7%
8	ROE	Net Profit / Equity	> 15%
	Leverage
9	Current Ratio	Current Assets / Current Liabilities	> 1.5
10	Net Gearing Ratio	(Total Debt – Cash) / Equity	< 0.5. < 0.3 for REIT
11	Debt to Equity Ratio	Total Debt / Equity	< 0.5
12	Debt To Cash Flow Ratio	Total Debt / OCF	<= 3
13	Interest Coverage	EBIT / Cost of Interest	> 5 for REIT