GTRONIC – Fundamental Analysis (1 Mar 2015)

GTRONIC Analysis:-

Excel – http://1drv.ms/1ECwmFV

Notes – http://tinyurl.com/mtp76p4

My View:-

  • Valuation
    • 5Y DCF
      • Good Scenario: 4.71 (Fair value uncertainty: HIGH)
      • Base Scenario: 4.32 (Fair value uncertainty: VERY HIGH)
      • Bad Scenario: 3.95 (Fair value uncertainty: VERY HIGH)
      • Ugly Scenario: 3.61 (Fair value uncertainty: EXTREME)
      • At current price (4.85), based on RDCF, assumption of FCFF growth rate in the next 3 years is 14%.
    • Absolute EY%:
      • Trailing:
        • FY14 (EPS: 0.229) – Fair value 3.17 (Fair Value Uncertainty: EXTREME)
        • R4Q (EPS: 0.229) – Fair value 3.17 (Fair Value Uncertainty: EXTREME)
      • Forward:
        • FY16 (EPS: 0.321) – Fair value 4.43 (Fair Value Uncertainty: VERY HIGH)
        • FY15 (EPS: 0.283) – Fair value 3.91 (Fair Value Uncertainty: VERY HIGH)
      • EPS applied to reach the current stock price (4.85): 0.351
  • Shariah status – Globe could be trade at a premium given the ample domestic liquidity and strong participation by domestic institutions.
  • GTRONIC has been consistently delivering steady earnings growth by keeping pace with market demands. This was shown in its latest quarterly results announcement. With a growing cash pile, the company mostly will continue its attractive dividend payouts. I believe that there is still slight room for the stock to appreciate further with expectation on another solid year ahead in FY15.
  • Dividend Yield is around 4-5%, not bad. However, valuation wise, GTRONIC is not attractive.

Latest Financial – Q4 2014 Financial Report (24 Feb 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1882841

At the time of writing, I did not own shares of GTRONIC.

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2 thoughts on “GTRONIC – Fundamental Analysis (1 Mar 2015)

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