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 ??)
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.