Stock Market PILIPINAS: Empowering the Filipino Investors

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Ano meron dito manong BASURERO? Trending ba? Hehehe
RFM - RFM CORPORATION


SECTOR: INDUSTRIAL
SUBSECTOR: FOOD, BEVERAGE & TOBACCO


LAST TRADE PRICE = PHP 5.5500
LAST TRADE DATE: 12/27/13


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 (9 months ending September 2013) = PHP 0.1660

Average earnings-per-share (based on the past 3 years and 3 quarters) = PHP 0.1993
Average price earnings ratio (based on the past 3 years and 3 quarters) = 27.84

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 5,892,000,000
Outstanding Shares = 3,160,403,866
Book-Value per Share = 1.86
Price-to-Book ratio (PB) = 2.98

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) = 10.69%


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

Current Asset = PHP 5,623,000,000
Total Liabilities = PHP 4,978,000,000
Net Working Capital = PHP 645,000,000
Current Asset to Total Liabilities ratio = 1.13

* 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 = 0.84
This company is relatively low leveraged.


GRAHAM'S "BLENDED MULTIPLIER" TEST:

P/E = 27.84
P/B = 2.98
P/E*P/B = 82.89

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.psmdcf.com/fundamental-analysis-f15.html
http://www.pse.com.ph/resource/corpt/201...ep2013.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.
Interesting ang chart nito. May tanong ako kay Senor Spy tungkol sa isang theory nya.

Si UBS oh. Nagsasarili. Hehe
Manalig kapatid!
RFM sees another banner year

Posted on Thursday Jan 9th at 12:00am
By Neil Jerome C. Morales

MANILA, Philippines - Publicly-listed food and beverage firm RFM Corp. expects another banner year in 2014, driven by strong demand enjoyed by its ice cream and pasta businesses.

Profits are seen to hit more than P900 million with the help of stable cost of raw materials and weaker peso that increases consumer spending, a senior company official said.

“I think it would be at least sustaining that same level of growth,” Felicisimo M. Nacino Jr., executive vice-president and chief operating officer of RFM, said in a phone interview yesterday.

He said the company targets to grow its earnings by another 15 to 20 percent this year after breaching the P800-million income mark in 2013.

“Fourth quarter was better than the previous quarters and I think it basically signals the recovery of the market,” Nacino said.

The maker of Selecta ice cream and Fiesta pasta posted a 19-percent profit growth to P525 million in January to September last year from P441 million a year ago, well within the target of 15 to 20-percent gain.

In 2012, RFM’s income surged a third to P682 million from P508 million in 2011.

For this year, RFM will post higher sales, aided by increasing consumer demand and manageable prices of raw materials.

“What we are focusing on is to drive sales growth considering 2013 topline was lower than 2012 because we disposed of the meat business,” Nacino said.

Its revenues fell nine percent to P7.1 billion in the nine-month period from P7.8 billion in 2012 as it unloaded its meat business to the Century Pacific group.

Nacino said the ice cream and pasta lines, both market leaders, will drive growth this year.

Selecta, a joint venture with Anglo-Dutch consumer goods giant Unilever, already corners 74 percent of the local ice cream market.

RFM’s White King Fiesta division that includes its fast-growing pasta business holds more than 31 percent of the market.

External developments will also benefit the food and beverage maker this year.

“For raw materials, 2013 was a fairly good year especially for imported commodities. Based on our current reading, it looks like it will be the same situation in 2014,” Nacino said.

While weaker peso will slightly increase the cost of imported raw materials, RFM can manage and offset it given more efficient production and distribution, Nacino said.

But RFM will likely benefit from higher disposable income of families of Filipinos overseas, Nacino said.

A weak peso, while making imports costlier, also jacks up the value of dollar export earnings and remittances from overseas Filipinos when converted into local money.

In October, RFM sold 340 million shares at P4.77 apiece, allowing the firm to generate P1.62 billion from the private placement.

Proceeds from the top-up share sale prepares the listed firm for potential acquisition and expansion opportunities in the food business.
press release..


RFM Corp. to buy Unilever group’s Royal pasta

MANILA, Philippines — Concepcion-led RFM Corp. has struck a deal to acquire the Unilever group’s Royal brand and pasta business for $47.8 million, cementing its leadership in this food category.

In a disclosure to the Philippine Stock Exchange on Thursday, RFM said the transaction value of $47.8 million or over P2.1 Billion covered mainly the Royal trademarks, goodwill and inventories. The deal is subject to customary closing requirements.

RFM president and CEO Jose A. Concepcion III said that the acquisition of the Royal brand – the number two pasta brand in the Philippines – would allow RFM to strengthen its market leadership in the pasta category. RFM currently also owns Fiesta, the leading pasta brand in the market today.

Fiesta and Royal brands lead other brands in offering spaghetti, macaroni, and pasta- and-sauce bundles that provide more convenient easy-to-prepare pasta meals.

Concepcion hopes to grow the pasta market by offering ready-to-cook and affordable pasta meals to Filipino consumers.

Concepcion said that Royal brand, which had a premium price point, would not only strengthen market leadership for the company in the segment but would also complement the value-positioning of its Fiesta brand.

The Royal brand has a 58-year heritage in the Philippines, known and loved by generations of Filipino families.

RFM disclosed in October last year that it had raised around P1.6 billion out of an equity deal to prepare itself for expansion and possible acquisitions. Concepcion said that proceeds from that offering helped fund this acquisition, in addition to internally generated cash-flows.

Moving forward, the disclosure said RFM would continue to look for acquisitions that will strengthen its position in the food and beverage categories.

“The acquisition is expected to boost top-line revenues of RFM, and will more than offset the lost revenues out of its selling the Swift meat business in late 2012,” the disclosure said.

Aside from pasta, RFM is also in a joint venture with Unilever for Selecta ice cream. The company is seeing a positive outlook with its other brands such as White King cake and sauce mixes, baked bread, Selecta milk and Sunkist beverage, as consumer spending promises to be strong this year, Concepcion added.


taken from http://business.inquirer.net/160353/rfm-...z2qXI7SVB8


RFM Acquires Royal Pasta Business

http://edge.pse.com.ph/openDiscViewer.do...9WzJL.dpbs
From Maybank ATR Kim Eng
TP: 6.65
Rating: BUY

http://research.maybank-ib.com/pdf/docum...d_3471.pdf
RFM Bullish Shark
Possible Profit Target
38.2% = 5.51
50.0% = 5.60
61.8% = 5.69
[Image: RFM_Bullish_Shark_Update.png]
breakout RFM...hinabol ko na lang at 6.26, cut ko week low 5.5, any thoughts?
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