The more the better?? The bigger the better?? The more expensive the better?
6,500 Outlets / 180k Staffs / leading pan-Asian retailer / Member of Jardine Matheson Group / Founded in 1886
Comparison will be done with OLAM (O32)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 7.028 (702.8% Above fair value) O32 – 1
- Price to earning ratio : 23.587 ( Below industry standard – 43.39) O32 – 16.855
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 64.08% | 256%
- Growth Performance : -0.65%| -Not given-
- Dividend Yield : 2.66%[ 5 years] | 2.59% [ 5 years]
- Current Ratio : 0.583 (5 years record of LOW current ratio)| 1.69
- Book Value per share : 1.11 | 2.02
- Cash Flow per share : 0.505 | 0.2556
- Below average management ability ( Poor dividend growth | Weak net income/gross profit margin | overall Negative cash flow)
3) TECHNICAL ANALYSIS
Current stock price is still trending bearishly after its 14 year bull trend breakout. Market has since been making lower low and lower high and may have just formed a Head and Shoulder pattern recently. A current long entry will have a 0.71 RR. Technically, Stock price requires high demand for it to break key level (Red line) to continue the bull trend ; making current bear trend a retracement.
4) Would I be vested into it?
No! it’s just another “familiar brand” hype
- Highly overvalued (Still growing below industry standard)
- Negative cashflow (16 x of it’s price) / Negative grow/ Poor CR
- Market still has bearish trend characteristics
- RR ratio is poor for an entry