Comparison will be done with ValueMax(T6I)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 1.319 (702.8% Above fair value) T6I – 0.76
- Price to earning ratio : 10 ( Below industry standard – 43.39) T6I – 8.788
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 207% | 102%
- Growth Performance : 23.31%| -4.48%
- Dividend Yield : 2.262%[ 5 years] | 0 [ only paid for 4 years]
- Current Ratio : 1.44 | 2.15
- Book Value per share : 0.1337| 0.3198
- Cash Flow per share : 0.0197 | 0.0354
- Below average management ability ( Stable dividend growth | Weak net income/gross profit margin | overall Positive cash flow due to financing)
3) Technical Analysis
Price of Maxi-Cash has been bearish till last year (2016). Since then, market has been picking up bullish momentum, as progressive higher highs and higher lows are being built. This can been seen in may where seller has tried to break key bullish level but have failed to do so. An market execution order will give you a 1:1 RR, This is in the point of view that market has no fundamental value for a longer entry.
4) Would I be vested into this company?
- No strong current ratio history/High financing to maintain growth of the company/conflicting numbers
- No value for purchase