Figtree Holding – What really matters in a Stock
Build Industrial and Commercial Facilities | Developments in China & Australia | Projects in Singapore, Malaysia, China
Comparison will be done with Green Build Technology (Y06)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 1.124 (12.4% below fair value) Y06 – 4.391
- Price to earning ratio : 6.306 ( Below industry standard – 27.96) Y06 – 24.13
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 203.8% | 669%
- Growth Performance : 57.15% (5 year growth)| 73.86% (5 year growth)
- Dividend Yield : 3.89% [ 5 years] | 0% [ Doesn’t pay]
- Current Ratio : 1.789 |1.182
- Book Value per share : 0.1536 | 0.0533
- Cash Flow per share : 3.46% of its stock price | 1.03% (Y06)
- Below average management ability (No progressive Dividend Growth | Good net income/gross profit margin growth | overall Positive cash flow (super low) | High reliance on financing (Capital intensive industry)
3) TECHNICAL ANALYSIS
Price action on the weekly chart shows that stock price is in a consolidation zone since 2014. A purchase of this stock would put you in a 1:0.5 RR ratio which is not quite favourable. A 0.5 take profit is due to the duration of this consolidation has been – making the trade highly weak on probabilities.
4) Would I be vested into it?
- Weak current ratio especially with such a high level of financing
- NAV is lower than stock price
- Poor management ability
- Poor RR ratios
- Consolidating since 2014