Figtree Holding – What really matters in a Stock

Build Industrial and Commercial Facilities | Developments in China & Australia | Projects in Singapore, Malaysia, China

Comparison will be done with Green Build Technology (Y06)

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 1.124 (12.4% below fair value) Y06 – 4.391
  • Price to earning ratio : 6.306 ( Below industry standard – 27.96) Y06 – 24.13

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 203.8% | 669%
  • Growth Performance : 57.15% (5 year growth)| 73.86% (5 year growth)
  • Dividend Yield : 3.89% [ 5 years] | 0% [ Doesn’t pay]
  • Current Ratio : 1.789 |1.182
  • Book Value per share : 0.1536 | 0.0533
  • Cash Flow per share : 3.46% of its stock price | 1.03% (Y06)
  • Below average management ability (No progressive Dividend Growth | Good net income/gross profit margin growth | overall Positive cash flow (super low) | High reliance on financing (Capital intensive industry) Screen Shot 2017-05-18 at 12.43.54 pmScreen Shot 2017-05-18 at 12.43.49 pm

3) TECHNICAL ANALYSIS

Screen Shot 2017-05-18 at 12.49.14 pm.jpg

Price action on the weekly chart shows that stock price is in a consolidation zone since 2014. A purchase of this stock would put you in a 1:0.5 RR ratio which is not quite favourable. A 0.5 take profit is due to the duration of this consolidation has been – making the trade highly weak on probabilities.

4) Would I be vested into it?

No!

Fundamentals

  • Weak current ratio especially with such a high level of financing
  • NAV is lower than stock price
  • Poor management ability

Technical

  • Poor RR ratios
  • Consolidating since 2014

“+1 Knowledge Point”

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