DBS Group – What really matters in a Stock

There must be a reason why the stock price is at 2013 level

280 branches across 18 markets | Safest bank in Asia (Is there even such thing as safest now???- hopefully)

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.918 (9.2% cheaper)
  • Price to earning ratio :  9.012 (Under performing according to industry norm of 9.605)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 0.9156 ( High reliance on debt for growth)
  • Growth Performance : 20.96
  • Current Ratio : 2.485 ( twice the ability to pay off its short-term debt and long term obligations)
  • Cash flow per share : 1.86 ( Remember you’re paying $15.38 a share)
  • Questionable management ability ( Increasing Dividend payout | Constant growth in gross profit | Questionable Cashflow | Net income margin falling ??)screen-shot-2016-10-10-at-8-57-51-amscreen-shot-2016-10-10-at-9-03-12-amScreen Shot 2016-10-10 at 9.04.52 am.jpg

In a nut shell, some numbers might appeal (Better than Singtel) to me but overall there are still loopholes that I feel uncomfortable investing money into…. would you invest?? I would love to come back 5 years time to see improvement in their cashflow management.

+1 Knowledge point

+1 Future PI

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