Stock Market PILIPINAS: Empowering the Filipino Investors

Full Version: RFM Corporation
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Congrats bro. Di na ko nakasakay dito. Pumutok na pala!

bananabananabananabananabanana

Go RFM!
hay sarap mag ice cream hehe
Currently trading at my conservative fair value

http://scion-tradeon.blogspot.com/2012/1...n-rfm.html
kambing.. kambing...RFM!.dancing man.RFM!.dancing man.RFM!..dancing man
Any updates or analysis on this stock... am planning to buy this now.... Huh
mukhang malapit na dividend declaration nito.. boring na cya for the past 2 days kaya exit na muna ako.. anyway 6+ FV nito sa COL
Any analysis, news, rumors or opinion on RFM?
RFM - RFM CORPORATION


SECTOR: INDUSTRIAL
SUBSECTOR: FOOD, BEVERAGE & TOBACCO


LAST TRADE PRICE = PHP 5.4000
LAST TRADE DATE: 06/07/13


P/E RATIO TEST:

2010 Earnings-per-share = PHP 0.1980
2011 Earnings-per-share = PHP 0.1610
2012 Earnings-per-share = PHP 0.2170


Average earnings-per-share (based on the past 3 years) = PHP 0.1920
Average price earnings ratio (based on the past 3 years) = 28.13

Result of Graham's price-earnings ratio test: FAILED
Benjamin Graham recommends current price no more than 15 times average earnings.
However, P/E <15 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


PRICE-TO-BOOK RATIO TEST:

Total Equity = PHP 5,552,549,000
Outstanding Shares = 3,160,403,866
Book-Value per Share = 1.76
Price-to-Book ratio (PB) = 3.07

Result of Graham's price-to-book ratio test: FAILED
Graham recommends that current price should not be more than 1.5 times the book value last reported.
However, P/B <1.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.

Moreover, average earnings to book ratio (similar to return on equity) = 10.93%


NET-WORKING-CAPITAL OR "RARE BARGAIN" TEST:

Current Asset = PHP 6,132,972,000
Total Liabilities = PHP 5,797,358,000
Net Working Capital = PHP 335,614,000
Current Asset to Total Liabilities ratio = 1.06

* By "net-working-capital", Graham means current assets (such as cash, marketable securities, and inventories) minus total liabilities (including preferred stock and long-term debt).

Result of Graham's net-working-capital or "RARE BARGAIN" test: PASSED
Current asset is greater than total liabilities.
Graham recommends issues with positive net-working-capital.

Moreover, total liabilities is greater than equity.
Total liabilities to equity ratio = 1.0441
This company is relatively highly leveraged.


GRAHAM'S "BLENDED MULTIPLIER" TEST:

P/E = 28.13
P/B = 3.07
P/E*P/B = 86.44

Result of Graham's "blended multiplier" test: FAILED
Graham suggests that the product of P/E and P/B should not exceed 22.5.
However, P/E*P/B <22.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


LIMITATION OF ANALYSIS:

1. EPS calculation does not isolate "extra-ordinary income".
2. Analysis does not cover earnings stability, dividend records, earnings growth and futures earnings (or forward P/E ratio).
3. For future plans and prospects, read below reference.


REFERENCE:

http://www.pse.com.ph/resource/corpt/201...ec2012.pdf



DISCLAIMER:

The content of this material is for informational, educational and discussion purposes only.

The author/ writer is not a professional or registered investment adviser and as such nothing in this material should be considered as investment advice or a recommendation to buy, sell or hold an equity.

The opinions/ analysis expressed in this material are written in good faith, but absolutely no representation or warranty, expressed or implied, is made as to their accuracy or completeness.

This material may contain significant errors or significant omissions. The author's/ writer's investment thesis could be significantly flawed or his/ her assumptions could be significantly inaccurate or maybe disregarding certain significant risks. The author/ writer hereby expressly disclaims any responsibility for error, omission or inaccuracy in the information, misinterpretation and any all loss, disappointment, negligence or damage caused by reliance on this information.

All information should be independently verified. Investors should always perform their own due diligence when investing. The author/ writer shall not be responsible or liable for any trading or investment decisions made based on this information. Readers are solely responsible for their own investment decisions.
RFM - RFM CORPORATION


SECTOR: INDUSTRIAL
SUBSECTOR: FOOD, BEVERAGE & TOBACCO


LAST TRADE PRICE = PHP 5.1000
LAST TRADE DATE: 06/21/13


P/E RATIO TEST:

2010 Earnings-per-share = PHP 0.1980
2011 Earnings-per-share = PHP 0.1610
2012 Earnings-per-share = PHP 0.2170
2013 Interim Earnings-per-share (3 months ending March 2013) = PHP 0.0490

Average earnings-per-share (based on the past 3 years and 1 quarter) = PHP 0.1930
Average price earnings ratio (based on the past 3 years and 1 quarter) = 26.42

Result of Graham's price-earnings ratio test: FAILED
Benjamin Graham recommends current price no more than 15 times average earnings.
However, P/E <15 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


PRICE-TO-BOOK RATIO TEST:

Total Equity = PHP 5,710,000,000
Outstanding Shares = 3,160,403,866
Book-Value per Share = 1.81
Price-to-Book ratio (PB) = 2.82

Result of Graham's price-to-book ratio test: FAILED
Graham recommends that current price should not be more than 1.5 times the book value last reported.
However, P/B <1.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.

Moreover, average earnings to book ratio (similar to return on equity) = 10.68%


NET-WORKING-CAPITAL OR "RARE BARGAIN" TEST:

Current Asset = PHP 5,546,000,000
Total Liabilities = PHP 4,976,000,000
Net Working Capital = PHP 570,000,000
Current Asset to Total Liabilities ratio = 1.11

* By "net-working-capital", Graham means current assets (such as cash, marketable securities, and inventories) minus total liabilities (including preferred stock and long-term debt).

Result of Graham's net-working-capital or "RARE BARGAIN" test: PASSED
Current asset is greater than total liabilities.
Graham recommends issues with positive net-working-capital.

Moreover, equity is greater than total liabilities.
Total liabilities to equity ratio = 0.87
This company is relatively low leveraged.


GRAHAM'S "BLENDED MULTIPLIER" TEST:

P/E = 26.42
P/B = 2.82
P/E*P/B = 74.59

Result of Graham's "blended multiplier" test: FAILED
Graham suggests that the product of P/E and P/B should not exceed 22.5.
However, P/E*P/B <22.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


LIMITATION OF ANALYSIS:

1. EPS calculation does not isolate "extra-ordinary income".
2. Analysis does not cover earnings stability, dividend records, earnings growth and futures earnings (or forward P/E ratio).
3. For future plans and prospects, read below reference.


REFERENCE:

http://www.pse.com.ph/resource/corpt/201...ar2013.pdf
http://www.pse.com.ph/resource/corpt/201...ec2012.pdf


DISCLAIMER:

The content of this material is for informational, educational and discussion purposes only.

The author/ writer is not a professional or registered investment adviser and as such nothing in this material should be considered as investment advice or a recommendation to buy, sell or hold an equity.

The opinions/ analysis expressed in this material are written in good faith, but absolutely no representation or warranty, expressed or implied, is made as to their accuracy or completeness.

This material may contain significant errors or significant omissions. The author's/ writer's investment thesis could be significantly flawed or his/ her assumptions could be significantly inaccurate or maybe disregarding certain significant risks. The author/ writer hereby expressly disclaims any responsibility for error, omission or inaccuracy in the information, misinterpretation and any all loss, disappointment, negligence or damage caused by reliance on this information.

All information should be independently verified. Investors should always perform their own due diligence when investing. The author/ writer shall not be responsible or liable for any trading or investment decisions made based on this information. Readers are solely responsible for their own investment decisions.
Nuong June pa ang huling post...Shoegazer dito tayo ngayong new year!
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