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.
Wednesday, February 18, 2015
Saturday, February 07, 2015
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 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 |
Monday, January 26, 2015
Stock Analysis 3: Sembcorp Industries 2014Q4
Market Price (2015-1-26) = $4.25
Earnings
Approx. EPS: $0.3076 (9M14) + $0.123 (4Q13) = $0.431 (TTM)
Approx. DPS: $0.17
Order Book: $12.6B
Ratios
P/E: 9.86 (5 year historical average 10.3)
Yield: 4%
Profitability
ROE: 16.13% [Avg for SG blue chips is 11.8%]
Asset Turnover: 0.748 [Avg for SG blue chips is ~0.5]
Net Income Margin: 7 [Comparable]
Balance Sheet
Current Ratio: 1.16
Debt To Equity: 0.65 [Warren Buffet's advocate <0.5. More than 2 is bad.]
NAV: $3.02
Additional Info
Biannual distributions in Apr/Aug. Profit contribution roughly 50% utilities, 50% marine.
Personal Opinion:
- Pressure in Utilities sector locally in Singapore.
- Pressure in Marine sector, for who knows how long.
- Experiencing declining profit margin, ROE and asset turnover for 4 years, although they are still impressive.
+ Undemanding P/E of <10 for solid blue chip.
+ Government Backed. Temasek Holdings own ~50% of the company.
+ Company has been buying back aggressively since Oct, from S4.9x to S4.2x.
+ Defensive utilities industry, with strong catalyst for growth overseas (e.g. India Power Plant).
Company spending a lot on capital expenditures, which can be a pro or con depending on if you're investing for the long term. While it still has good resources, its balance sheet has weakened considerably.
Really good stock... hoping to allocate more if it hit lower 4s.
Earnings
Approx. EPS: $0.3076 (9M14) + $0.123 (4Q13) = $0.431 (TTM)
Approx. DPS: $0.17
Order Book: $12.6B
Ratios
P/E: 9.86 (5 year historical average 10.3)
Yield: 4%
Profitability
ROE: 16.13% [Avg for SG blue chips is 11.8%]
Asset Turnover: 0.748 [Avg for SG blue chips is ~0.5]
Net Income Margin: 7 [Comparable]
Balance Sheet
Current Ratio: 1.16
Debt To Equity: 0.65 [Warren Buffet's advocate <0.5. More than 2 is bad.]
NAV: $3.02
Additional Info
Biannual distributions in Apr/Aug. Profit contribution roughly 50% utilities, 50% marine.
Personal Opinion:
- Pressure in Utilities sector locally in Singapore.
- Pressure in Marine sector, for who knows how long.
- Experiencing declining profit margin, ROE and asset turnover for 4 years, although they are still impressive.
+ Undemanding P/E of <10 for solid blue chip.
+ Government Backed. Temasek Holdings own ~50% of the company.
+ Company has been buying back aggressively since Oct, from S4.9x to S4.2x.
+ Defensive utilities industry, with strong catalyst for growth overseas (e.g. India Power Plant).
Company spending a lot on capital expenditures, which can be a pro or con depending on if you're investing for the long term. While it still has good resources, its balance sheet has weakened considerably.
Really good stock... hoping to allocate more if it hit lower 4s.
Sunday, January 25, 2015
Stock Analysis 2: ST Engineering 2015Q1
Market Price (2015-1-25) = $3.39
Earnings
Approx. EPS: $0.179 (TTM)
Approx. DPS: $0.04 + $0.08 + 0.04 = $0.16 (TTM)
Approx DPS, assuming reduced 75% payout ratio = $0.134
Order Book: $13.2B
Ratios
P/E: 18.9
Yield: 4% [based on 75% payout]
Profitability
ROE: 27.2% [Avg for SG blue chips is 11.8%]
Asset Turnover: 0.8 [Avg for SG blue chips is ~0.5]
Net Income Margin: 8.43 [Comparable]
Balance Sheet
Current Ratio: 1.41
Debt To Equity: 0.47 [Warren Buffet's advocate <0.5 More than 2 is bad.]
NAV: $0.6286
Additional Info
Biannual distributions in Apr/Aug. Management has indicate intention to reduce dividend payout ratio to 75%.
Personal Opinion:
- High P/E ratio when the STI average 14.
- High P/B ratio of 5.3
- Pressure in aerospace and possibly marine sector in the coming quarters.
+ Government Backed. Temasek Holdings own ~50% of the company.
+ Insider Buying: Temasek brought in recently at $3.46. Company has been buying back since Dec, in the 3.2x to 3.3x range.
+ High profitability ratio, high barrier of entry for defense industry.
Even though it's below its historical P/E at the moment, I don't think it's selling cheap. Will wait for lower 3s and monitor its upcoming results.
Earnings
Approx. EPS: $0.179 (TTM)
Approx. DPS: $0.04 + $0.08 + 0.04 = $0.16 (TTM)
Approx DPS, assuming reduced 75% payout ratio = $0.134
Order Book: $13.2B
Ratios
P/E: 18.9
Yield: 4% [based on 75% payout]
Profitability
ROE: 27.2% [Avg for SG blue chips is 11.8%]
Asset Turnover: 0.8 [Avg for SG blue chips is ~0.5]
Net Income Margin: 8.43 [Comparable]
Balance Sheet
Current Ratio: 1.41
Debt To Equity: 0.47 [Warren Buffet's advocate <0.5 More than 2 is bad.]
NAV: $0.6286
Additional Info
Biannual distributions in Apr/Aug. Management has indicate intention to reduce dividend payout ratio to 75%.
Personal Opinion:
- High P/E ratio when the STI average 14.
- High P/B ratio of 5.3
- Pressure in aerospace and possibly marine sector in the coming quarters.
+ Government Backed. Temasek Holdings own ~50% of the company.
+ Insider Buying: Temasek brought in recently at $3.46. Company has been buying back since Dec, in the 3.2x to 3.3x range.
+ High profitability ratio, high barrier of entry for defense industry.
Even though it's below its historical P/E at the moment, I don't think it's selling cheap. Will wait for lower 3s and monitor its upcoming results.
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