Stock Analysis 7: Boustead Singapore

Market Price (2015-3-06) = $1.67

*As a project-oriented business, I used FY2014 for earnings instead of latest quarter.

Earnings
Approx. EPS: $0.139 (for FY2014)
Approx. DPS: $0.07

Ratios

P/E: 12.1
Yield: 4.2%

Profitability

ROE: 20.7% [Avg for SG blue chips is 11.8%]
Asset Turnover: 0.75 [Avg for SG blue chips is ~0.5]
Net Income Margin: 12.3

Balance Sheet

Current Ratio: 1.79
Debt To Equity: 0.425
NAV: $0.684

Additional Info

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

Personal Opinion:

+ Diverse business in Energy (~35%), Real Estate (~40%), Geo-Spatial (~20%) and Water (5%) in 84 countries
+ Long history with 12 consecutive years of dividend payout through crisis periods.
+ Fortress balance sheet: Net cash position of 160+M, Current Assets can cover ALL Liabilities.
+ At its 52 week low...

- Management has expressed "extremely challenging" business climates for oil & gas, real estate sectors.

A stock I learned and read up on over the weekend. I think they will benefit greatly in the future with all the Smart Nation stuff coming up in Singapore. Problem is they are looking to diverse the Real Estate sector into a separate business and I am not sure what is the impact. I will probably wait for that to happen before deciding if I want to jump in.