How bad can a listed company go??
Listed on 2010 | 21 Industrial Property – Chemical Warehouse & Logistic / High Tech Industrial / Warehouse logistic / General Industrial |
- IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to Book Ratio : 0.643
- Price to Earning Ratio :
6.81 [Rough number through average dividing from its Reit price] – Growing at below industrial standard of 14.172 –
- LEARN ABOUT THEIR NUMBERS
- Gearing : 73.14% ( Above average reliance on financing for growth)
- Wale : 2.89 Years ( Not really good compared to Soilbuild at 4.8 years – Same industry)
- Current Ratio : 0.231 (Inability to pay off short-term debt and long term obligation) – SoilBuild has a higher ratio by 7.2 times
- Growth Rate : -8%
- Cash Flow Per Share : $ -0.1971 (Super bad)
- Book Value per share: 0.808 (Probably due to the amount of properties that they have)
- Worst management ability I’ve seen ( Decreasing dividend payout- worst sign | Poor Net income margin over the span of 5 years | Huge financing and investing losses | Crazy high payout ration in 2014?!?! )
- Technical Analysis
Market price of this Reit has constantly been dropping since April 2013 till now. 60% drop in market price since its peak – reflecting poor management ability to build demand and improve financial numbers.
Currently price action (Market price) is consolidating and there are two probable reasons:
- Sabana or its sponsors are buying back shares ( wasting money) to prevent market price from dropping further
- Institutional investors are giving hints for the next market direction
- Would I want to invest into it??
Definitely not… looking at how poor their financial numbers are managed and controlled… Imagine your company is making $100 of revenue per share and it has a payout ratio of 130% (which means you are paying your shareholders $130 of revenue per share) – Is it even wise? technically giving out more money than they earn….. As industrial times are bad, I really do hope Sabana are not buying back shares as they should really use the money to improve their management ability.