Sunday, March 01, 2015

Stock Analysis 5: Super Group 2014 Full Year

Market Price (2015-2-27) = $1.195

Earnings
Approx. EPS: $0.0617 (Down from $0.0896)
Approx. DPS: $0.031
Payout Ratio: ~50

Ratios

P/E: 19.4
Yield: 2.6%

Profitability

ROE: 14.2% [Avg for SG blue chips is 11.8%]
Asset Turnover: 0.877 [Avg for SG blue chips is ~0.5]
Net Income Margin: 12.7 [Comparable]

Balance Sheet

Current Ratio: 3.2
Debt To Equity: 0.21
NAV: $0.4462 (Up from $0.4187)

Additional Info

Biannual distributions in May/Aug. Management committed to paying out 50% earnings  as dividends

Personal Opinion: HOLD

A growth stock showing signs of recovery. However, I am kind of cautious that its "recovery" is due to one time asset disposal instead of increase in operating income. This is something I need to take note of in the next result.

Overall, I think it's still a solid company with good profitability ratios and good balance sheet. I brought it at too high a price, so it's gonna be a while before it recovers.

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