Alibaba Group Holding Ltd ADR (BABA N) Extended Graph Analysis

April 3rd, 2020 Posted by Extended Analysis No Comment yet

Company Profile

BABA logo

Alibaba Group Holding Ltd Company is a Chinese multinational online company. Specializing in e-commerce, retail, internet and technology. Founded by Jack Ma on 4 April 1999 in Hangzhou, Zhejiang. Alibaba is a public company and traded as NYSE: BABA.

 

Alibaba Group Holding Ltd ADR (BABA N) Extended Graph Analysis

 

1. BABA CASH FLOWS

BABA CASH FLOWS

2015 2016 2017 2018 2019 2020
Net cash provided by operating activities 41,217,000,000 56,836,000,000 80,326,000,000 125,171,000,000 150,975,000,000 196,996,000,000
Net cash used for investing activities -53,454,000,000 -42,831,000,000 -78,364,000,000 -83,890,000,000 -151,060,000,000 -97,828,000,000
Net cash provided by (used for) financing activities 87,497,000,000 -15,846,000,000 32,914,000,000 20,359,000,000 -7,392,000,000 68,605,000,000
Capital expenditures -7,705,000,000 -10,845,000,000 -17,546,000,000 -29,836,000,000 -49,643,000,000 -49,643,000,000
Free cash flow 33,512,000,000 45,991,000,000 62,780,000,000 95,335,000,000 101,332,000,000 147,353,000,000
Working capital 102,437,000,000 82,031,000,000 88,745,000,000 121,045,000,000 62,604,000,000 62,604,000,000

Facts:

  • Cash provided by operating activities was CNY 196.996 billion in 2020.
  • Cash used for investing activities were CNY -97.8 in 2020.
  • Net cash provided by financing activities was CNY 68.605 billion in 2020.
  • Capital expenditure was CNY -49.6 billion in 2020.
  • Free cash flow was CNY 147 billion.
  • Working capital was CNY 62.6 billion in 2020.

Explanation

  • Cash from operations was increasing year-over-year and has a growth rate of 378 percent in five years.
  • Cash from investing activities were purchases of property, plant and equipment, acquisitions and purchases of investments.
  • Cash provided by (used for) financing activities were debt repayment and common stock repurchase.
  • Capital expenditures were purchases of property, plant and equipment and purchases of intangibles.
  • Free cash flow increases year-over-year and has a growth rate of 340% in five years.
  • Working capital was erratic in movement in the last five years.

Interpretation

Alibaba was capable and efficient in maintaining a positive cash from operations, free cash flow and working capital in the last five years. 

 

2. BABA BALANCE SHEET

BABA BALANCE SHEET

2015 2016 2017 2018 2019
Total cash 125,999,000,000 115,696,000,000 150,801,000,000 210,210,000,000 203,165,000,000
Current Assets 142,109,000,000 134,070,000,000 182,516,000,000 256,855,000,000 270,273,000,000
Net property, plant and equipment 12,244,000,000 16,505,000,000 24,897,000,000 75,866,000,000 98,449,000,000
Total non-current assets 113,325,000,000 230,380,000,000 324,296,000,000 460,269,000,000 694,803,000,000
Total assets 255,434,000,000 364,450,000,000 506,812,000,000 717,124,000,000 965,076,000,000
Current liabilities 39,672,000,000 52,039,000,000 93,771,000,000 135,810,000,000 207,669,000,000
Non-current liabilities 70,323,000,000 95,424,000,000 134,242,000,000 215,492,000,000 265,150,000,000
Total liabilities 109,995,000,000 147,463,000,000 228,013,000,000 351,302,000,000 472,819,000,000
Retained earnings 24,842,000,000 78,752,000,000 108,558,000,000 172,353,000,000 257,886,000,000
Stockholders equity 145,439,000,000 216,987,000,000 278,799,000,000 365,822,000,000 492,257,000,000

Facts:

  • Total cash was CNY 203 billion in 2019.
  • Current assets were CNY 270 billion in 2019.
  • Net property, plant and equipment was CNY 98 billion in 2019.
  • Non-current assets were CNY 695 billion in 2019.
  • Total assets were CNY 965 billion in 2019.
  • Current liabilities were CNY 208 billion in 2019.
  • Non-current liabilities were CNY 265 billion in 2019.
  • Total liabilities were CNY 473 billion in 2019.
  • Retained earnings were CNY 258 billion in 2019.
  • Stockholders equity was CNY 492 billion in 2019.

Explanation

  • Cash was increasing year-over-year and has a growth rate of 61% in five years. It represents 21 percent of the total assets.
  • Current assets represent 28 percent of total assets and have a growth rate of 90 percent in five years.
  • Net property plant and equipment represents 10 percent of total assets. It grew 704 percent in five years.
  • Non-current assets was 72 percent of total assets and it grew 513 percent in five years.
  • Total assets grew 278 percent in five years.
  • Current liabilities represent 44 percent of total liabilities.
  • Non-current liabilities represent 56 percent of total liabilities.
  • Total liabilities represents 49 percent of total equities and liabilities.
  • Retained earnings represent 52 percent of total equities.
  • Stockholders equity represents 41 percent of total equities and liabilities.

Interpretation

The balance was strong and in good health. The company was efficient in maintaining a solid balance sheet in the last five years. 

 

3. BABA INCOME AND MARKET

BABA INCOME AND MARKET

2015 2016 2017 2018 2019 2020
Revenue 76,204,000,000 101,143,000,000 158,273,000,000 250,266,000,000 376,844,000,000 488,895,000,000
EBIT 23,637,000,000 29,958,000,000 48,055,000,000 70,363,000,000 57,750,000,000 94,306,000,000
Net Income 24,261,000,000 71,460,000,000 43,675,000,000 64,985,000,000 87,886,000,000 172,126,000,000
EBITDA 39,491,000,000 90,115,000,000 76,992,000,000 125,989,000,000 138,491,000,000 212,655,000,000
Market Capitalization 0 1,356,753,374,878 2,601,380,048,653 2,601,380,048,653 3,231,462,292,833 3,231,462,292,833
Intrinsic Value 0 0 5,454,154,281,120 7,219,369,371,316 13,772,141,627,743 12,164,643,972,274

Facts:

  • Revenue was CNY 489 billion in 2020.
  • EBIT was CNY 94 billion in 2020.
  • Net Income was CNY 172 billion in 2020.
  • EBITDA was CNY 213 billion in 2020.
  • Market capitalization was CNY 3 trillion in trailing twelve months.
  • The calculated intrinsic value was CNY 12 trillion in trailing twelve months.

Explanation:

  • Revenue increases year-over-year and has grown 542 percent in five years.
  • EBIT has a growth of 299 percent in five years.
  • Net income grew 609 percent in five years.
  • Market capitalization increased year-over-year and grew 138 percent in five years.
  • Intrinsic value was over 276 percent against market capitalization, therefore market price was undervalued.

Interpretation

Alibaba was profitable in the last five years. The management was able to generate more than enough revenue for the operation of the business.

 

4. BABA FINANCIAL RATIOS

BABA FINANCIAL RATIOS

2015 2016 2017 2018 2019 2020
Asset turnover (average) 0.42 0.33 0.36 0.4 0.45 0.43
Return on assets % 13.16 23.06 10.03 10.46 10.41 15.37
Return on equity % 27.63 39.43 17.62 19.85 20.42 28.54
Debt/Equity 0.35 0.25 0.28 0.33 0.23 0.16
Return on invested capital % 13.99 11.08 12.13 9.72 9.89 12.16
Interest coverage 12.72 42.86 23.47 29.16 19.54 37.63

Facts:

  • Asset turnover was averaging 0.43 in 2020.
  • Return on assets was 15.37 percent in 2020.
  • Return on equity was 28.54 percent in 2020.
  • Debt/Equity ratio was 0.16 in 2020.
  • Return on invested capital was 12.16 percent in 2020.
  • Interest coverage was 37.63 in 2020.

Explanation

  • Asset turnover indicates that for every $1 in asset, the company generates 0.43 CNY.
  • Return on assets indicates that the company produces .15 CNY of net income for every CNY invested in assets.
  • Return on equity indicates that for every CNY invested in equity, it earns .2854 CNY net income.
  • Debt/Equity ratio indicates that for every CNY in equity, the company has .16 CNY in leverage.
  • Return on invested capital means the company earns .12 CNY profit for its invested capital.
  • Interest coverage means that the company can afford to pay its interest payment 38 times of its current financial obligations.

Interpretation

The financial ratios show that the company is managed very well from its business operations. The company is profitable.

 

5. BABA KEY EXECUTIVE

NAME TITLE
Sophie Minzhi WU Chief Customer Officer
Timothy A. Steinert General counsel and Corporate Secretary
Luyuan Fan Pres, Alibaba Digital Media and Entertainment
J. Michael Evans Director and President
Shan Trudy Dai President Wholesale Marketplaces
Jeff Jianfeng Zhang Chief Technology Officer and President
Junfang Jessie Zheng Chief Risk Officer and Chief Platform Governance Officer
Pen-Hung Chris Tung Chief Marketing Officer
Judy Wenhong Tong Chief People Officer

Facts:

Alibaba does not reveal the key executive compensation.

 

6. BABA LOBBYING AND CONTRIBUTIONS

BABA LOBBYING AND CONTRIBUTIONS

Period USD
2011 100,000
2012 461,000
2013 430,000
2014 450,000
2015 410,000
2016 1,020,000
2017 2,010,000
2018 2,740,000
2019 2,620,000

Facts:

Alibaba has been spending annual lobbying and contributions since 2011. The figures vary  every period. A Note from OpenSecrets is quoted as follows:

NOTE: Figures on this page are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on January 23, 2020 and includes spending from January 1 – December 31. Prior years include spending from January through December.

Source: OpenSecret.org Center for Responsive Politics

 

7. BABA FINANCIAL STRENGTH

BABA FINANCIAL STRENGTH

DATA CNY
Working capital 62,604,000,000
Total assets 965,076,000,000
Sales 488,895,000,000
EBIT 94,306,000,000
Market value of equity 3,404,603,312,500
Book value of total liabilities 472,819,000,000
Retained earnings 257,886,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.06 1.2 0.08
B – Retained Earnings / Total Assets 0.27 1.4 0.37
C – EBIT / Total Assets 0.10 3.3 0.32
D – Market Value of Equity / Book Value of Total Liabilities 7.20 0.6 4.32
E – Sales / Total Assets 0.51 1 0.51
Z-Score 5.60


Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

Explanation:

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

Alibaba. has a Z-Score of 5.60. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy in near future. In other terms, the company is not close to insolvency. The main factors of this statistical measurement are profitability, liquidity, leverage and efficiency.

Overview

Alibaba Group Holding Ltd ADR has a strong balance sheet and is financially healthy. The income statement shows that the company was profitable and liquid. The stock price of Alibaba was undervalued, therefore, could be a good Buy.

CITATION

https://www.morningstar.com/stocks/xnys/baba/quote

https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2011&id=D000064488

https://www.alibabagroup.com/en/global/home

Researched and written by Criselda

 

ConocoPhillips (COP) Extended Graph analysis

March 14th, 2020 Posted by Extended Analysis No Comment yet

Company Profile

COP logo

ConocoPhillips is one of the largest American multinational energy Corporations engaged in the exploration, production, transportation and marketing of crude oil, gas, petroleum  and other products. ConocoPhillip is a public company traded as NYSE: COP. The company was founded in 1875 by Frank Phillips, headquartered in Houston Energy Corridor, Houston Texas, USA.

 

ConocoPhillips (COP) Extended Graph Analysis

1. COP CASH FLOW

COP CASH FLOW

2015 2016 2017 2018 2019 TTM
Net cash flow provided by operating activites 7,572,000,000 4,403,000,000 7,077,000,000 12,934,000,000 11,104,000,000 11,104,000,000
Net cash used for investing activities -8,655,000,000 -3,859,000,000 7,762,000,000 -3,843,000,000 -6,618,000,000 -6,618,000,000
Net cash provided by (used for) financing activities -1,429,000,000 764,000,000 -12,356,000,000 -9,359,000,000 -5,229,000,000 -5,229,000,000
Capital expenditure -10,050,000,000 -4,869,000,000 -4,591,000,000 -6,750,000,000 -6,636,000,000 -6,636,000,000
Free cash flow -2,478,000,000 -466,000,000 2,486,000,000 6,184,000,000 4,468,000,000 4,468,000,000
Working Capital -467,000,000 1,700,000,000 7,115,000,000 5,879,000,000 9,870,000,000 9,870,000,000

Facts:

  • Cash provided by operating activities was $11.104 billion in the trailing twelve months.
  • Cash used for investing activities were -$6.6 billion in the trailing twelve months.
  • Net cash used for financing activities were -$5 billion in the trailing twelve months.
  • Capital expenditures were -$6.6 billion in the trailing twelve months.
  • Free cash flow was $4.5 billion in the trailing twelve months.
  • Working capital was $9.87 billion in the trailing twelve months.

Explanation:

  • Cash provided by operating activities is erratic in movement in the last five years. It has a negative growth of 14% from 2018.
  • Cash used for investment activities are investment in property, plant and equipment.
  • Cash provided by financing activities are debt repayment, common stock repurchased and dividends paid.
  • Capital expenditures are investment in property, plant and equipment.
  • Free cash flow was erratic in movement in the last five years and has a negative growth of 28% from 2018.
  • Working capital grew 68% in the last five years.

Interpretation

The cash flow statements were stable although there was negative growth within five years period. The company has the ability to provide cash from operations in five years and has not seen any negative cash from operations in five years.

 

2. COP BALANCE SHEET

COP BALANCE SHEET

2015 2016 2017 2018 2019
Total cash 2,368,000,000 3,660,000,000 10,097,000,000 7,625,000,000 10,227,000,000
Current Assets 8,789,000,000 8,609,000,000 16,512,000,000 13,274,000,000 16,913,000,000
Net property, plant and equipment 66,446,000,000 58,331,000,000 45,683,000,000 45,698,000,000 42,269,000,000
Total non-current assets 88,695,000,000 81,163,000,000 56,850,000,000 56,706,000,000 53,601,000,000
Total assets 97,484,000,000 89,772,000,000 73,362,000,000 69,980,000,000 70,514,000,000
Current liabilities 9,256,000,000 6,909,000,000 9,397,000,000 7,395,000,000 7,043,000,000
Non-current liabilities 48,466,000,000 47,889,000,000 33,358,000,000 30,646,000,000 28,490,000,000
Total liabilities 57,722,000,000 54,798,000,000 42,755,000,000 38,041,000,000 35,533,000,000
Retained earnings 36,414,000,000 31,548,000,000 29,391,000,000 34,010,000,000 39,742,000,000
Stockholders equity 39,762,000,000 34,974,000,000 30,607,000,000 31,939,000,000 34,981,000,000

Facts:

  • Cash was $10 billion in 2019.
  • Current assets were $16.9 billion in 2019.
  • Net property, plant and equipment was $42 billion in 2019.
  • Non-current assets were $53.6 billion in 2019.
  • Total assets were $70.5 billion in 2019.
  • Current liabilities were $7 billion in 2019.
  • Non-current liabilities $28 billion in 2019.
  • Total liabilities were $35.5 billion in 2019.
  • Retained earnings were $39.7 billion in 2019.
  • Stockholders equity was $35 billion in 2019.

Explanation

  • Cash represents 15% of total assets.
  • Current assets represent 24% of total assets.
  • Net property, plant and equipment represent 60% of total assets.
  • Non-current assets represent 76% of total assets.
  • Total assets grew 0.76% in one year, 2018 to 2019.
  • Current liabilities represent 20% of the total liabilities.
  • Non-current liabilities represent 80% of the total liabilities.
  • Total liabilities represents 50% of the total liabilities and stockholders equity.
  • Stockholders equity represents 50% of the total liabilities and equity.

Interpretation

The company is liquid and financially healthy. The balance sheet is strong and stable.

 

3. COP INCOME AND MARKET

COP INCOME AND MARKET

2015 2016 2017 2018 2019 TTM
Revenue 29,564,000,000 23,693,000,000 29,106,000,000 36,417,000,000 32,567,000,000 32,567,000,000
EBIT -5,440,000,000 -4,634,000,000 2,360,000,000 8,859,000,000 7,278,000,000 7,278,000,000
Net Income -4,428,000,000 -3,615,000,000 -855,000,000 6,257,000,000 7,189,000,000 7,189,000,000
EBITDA 2,794,000,000 4,777,000,000 5,328,000,000 16,664,000,000 16,392,000,000 16,392,000,000
Market Capitalization 57,709,000,000 62,125,000,000 65,622,000,000 70,976,000,000 70,549,000,000 52,348,000,000
Intrinsic Value 106,536,316,910 184,383,385,632 323,869,764,451 218,122,508,960 115,498,848,453 167,935,607,654

Facts:

  • Revenue was $33 billion in the trailing twelve months.
  • EBIT was $7 billion in the trailing twelve months.
  • Net income was $7 billion the trailing twelve months.
  • EBITDA was $16 billion in the trailing twelve months.
  • Market capitalization was $52.348 billion in the trailing twelve months.
  • Intrinsic value was $168 billion in the trailing twelve months.

Explanation

  • Revenue was down by 11% from 2018 to 2019.
  • EBIT represents 22% of revenue.
  • Net income represents 22% of revenue.
  • EBITDA represents 50% of revenue.
  • Market capitalization was down 28% from 2019 to the trailing twelve months.
  • Intrinsic value was up by more than 200% of the market capitalization.

Interpretation

The earnings of the company shows improvements in the last three years. Bottomline was impressive.

 

4. COP FINANCIAL RATIOS

COP FINANCIAL RATIOS

2015 2016 2017 2018 2019 TTM
Asset turnover (average) 0.28 0.25 0.36 0.51 0.46 0.46
Return on assets % -4.14 -3.86 -1.05 8.73 10.23 10.23
Return on equity % -9.66 -9.67 -2.61 20.01 21.49 21.49
Debt/Equity 0.59 0.75 0.56 0.47 0.42 0.42
Return on invested capital % -5.61 -4.49 -0.47 13.7 15.82 15.82
Interest coverage -6.87 -3.44 -1.38 14.57 13.24 13.24

Facts:

  • Asset turnover was averaging 0.46 in the trailing twelve months.
  • Return on assets was 10.23% in the trailing twelve months.
  • Return on equity was 21.49% in the trailing twelve months
  • Debt/Equity was 0.42 in the trailing twelve months.
  • Return on invested capital was 15.82% in the trailing twelve months.
  • Interest coverage was 13.24 in the trailing twelve months.

Explanation

  • Asset turnover indicates that for every $1 invested in assets, COP generated 46 cents of sales.
  • Return on assets indicates that every $1 invested in assets, the company produced 10.23 cents of net income.
  • Return on equity indicates that for every $1 invested in equity, it generated 21.49 cents of earnings.
  • Debt/Equity means that for every dollar in equity COP has 42 cents in leverage. 
  • Return on invested capital means the percent of return on the invested capital.
  • Interest coverage means the company has the ability to pay its current interest in cash 13 times more on due date.

Interpretation

The company’s financial ratios were impressive. The company is healthy and profitable.

 

5. COP KEY EXECUTIVE COMPENSATION

COP Key Executive Compensation

2014 2015 2016 2017 2018
Key Executive Compensation
Salary 5,653,527 5,671,032 5,818,782 5,868,032 6,046,315
Bonus 0 0 0 0 200,000
Annual other income 0 0 0 0 0
Restricted Stock Award 15,271,390 15,906,476 15,850,148 17,274,323 30,769,372
Securities options 13,426,434 13,892,148 10,602,130 11,492,442 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 8,992,090 6,457,004 6+904518 12,568,554 12,679,435
Other compensation 1,021,157 798,083 590,167 853,753 4,097,176
Total 60,785,066 49,678,375 48,458,456 55,612,133 67,594,977
Ryan M. Lance/Chairman of the Board and CEO
Salary 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000
Bonus 0 0 0 0 0
Annual other income 0 0 0 0 0
Restricted Stock Award 6,116,797 6,630,693 6,607,217 6,993,660 11,006,296
Securities options 5,790,798 5,790,780 4,419,261 4,652,424 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 3,568,640 2,524,160 2,638,400 4,596,800 4,868,800
Other compensation 467,776 301,786 245,437 327,393 372,815
Total 27,577,071 21,339,719 19,212,038 21,848,930 23,405,270
Don E Wallette/Executive VP and CFO
Salary 874,000 874,000 939,550 961,400 985,444
Bonus 0 0 0 0 1
Annual other income 0 0 0 0 0
Restricted Stock Award 1,800,494 1,951,740 1,944,837 2,264,449 3,563,725
Securities options 1,704,492 1,704,798 1,301,146 1,506,438 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 1,102,988 811,072 911,364 1,720,906 1,763,945
Other compensation 1,333,181 85,414 61,530 109,606 109,403
Total 7,878,314 6,518,635 7,406,824 9,498,081 10,272,497
Alan Hirshberg/EVP, Production Drilling & Projects
Salary 1,085,667 1,096,000 1,178,200 1,205,600 1,205,600
Bonus 0 0 0 0 0
Annual other income 0 0 0 0 0
Restricted Stock Award 3,219,979 2,761,283 2,751,504 3,203,706 5,040,839
Securities options 2,016,711 2,411,712 1,840,685 2,131,596 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 1,602,444 1,169,651 1,314,282 2,481,728 2,343,084
Other compensation 146,230 159,072 121,457 170,957 156,827
Total 11,747,432 8,787,738 9,468,653 9,632,808 12,970,551
Matthew J. Fox/EVP and COO
Salary 1,241,000 1,241,000 1,241,000 1,241,000 1,241,000
Bonus 0 0 0 0 0
Annual other income 0 0 0 0 0
Restricted Stock Award 2,884,300 3,126,619 3,115,552 3,297,776 5,189,837
Securities options 2,730,645 2,730,348 2,083,774 2,194,020 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 1,872,421 1,324,395 1,384,336 2,625,956 2,554,599
Other compensation 177,039 159,327 91,371 149,519 150,731
Total 9,323,404 8,707,373 8,330,391 9,946,434 9,394,458
Janet L Carrig/Former Senior VP, Legal General Counsel & Corporate ecretary
Salary 752,860 760,032 760,032 760,032 672,333
Bonus 0 0 0 0 0
Annual other income 0 0 0 0 0
Restricted Stock Award 1,249,820 1,436,141 1,431,038 1,514,732 2,383,843
Securities options 1,183,788 1,254,510 957,264 1,007,964 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 845,597 627,726 656,136 1,143,164 806,641
Other compensation 96,931 92,484 70,372 96,278 3,281,368
Total 4,258,845 4,324,910 4,040,550 4,685,880 7,144,185
Kelly Brunetti Rose/Senior VP, Legal General Counsel & Corporate Secretary
Salary 241,938
Bonus 200,000
Annual other income 0
Restricted Stock Award 3,583,832
Securities options 0
LTIP Payout 0
Non-Equity Compensation 342,366
Other compensation 26,031
Total 4,407,016

Facts:

  • The total key executive compensation was $67.594,977 in 2018.
  • Ryan M. Lance, Chairman of the Board and CEO compensation was $23,405,270 in 2018.
  • Don E. Wallette, EVP and CFO compensation was $10,292,497 in 2018.
  • Alan Hirshberg, EVP Production Drilling and Project compensation was $12,970,551 in 2018.
  • Mathew J. Fox, EVP and COO compensation was $9,394,458 in 2018.
  • Janet L. Carrig, Former Senior VP, Legal General Counsel & Corporate Secretary compensation was $7,144,185 in 2018.
  • Kelly Brunetti Rose/Senior VP, Legal General Counsel & Corporate Secretary compensation was $4,407,016 in 2018.

Explanation

  • The total key executive compensation represents 0.94% of the net income.
  • CEO compensation represents 35% of the total key executive compensation.
  • CFO compensation represents 15% of the total key executive compensation.
  • EVP Production Drilling and Project compensation represents 19% of the total key executive compensation.
  • EVP and COO compensation represents 14% of the total key executive compensation.
  • Former Senior VP, Legal General Counsel & Corporate Secretary compensation represents 11% of the total key executive compensation.
  • Senior VP, Legal General Counsel & Corporate Secretary compensation represents 7% of the total key executive compensation.

Interpretation

The key executive compensation was  less than 1 percent which is fair enough for the compensation of the executives.

 

6. COP LOBBYING AND CONTRIBUTIONS

COP LOBBYING AND CONTRIBUTIONS

Period Amount Period Amount
2020 1,473,459 2008 8,459,053
2019 4,870,000 2007 4,089,568
2018 3,080,000 2006 2,038,291
2017 3,010,000 2005 5,218,084
2016 2,498,000 2004 2,670,438
2015 3,135,583 2003 1,380,000
2014 3,969,840 2002 1,157,000
2013 4,242,353 2001 878,639
2012 3,863,736 2000 1,235,159
2011 20,557,043 1999 1,340,812
2010 19,626,382 1998 10,000
2009 18,069,858

Explanation

ConocoPhillips has been spending annual lobbying and contributions since 1998. The amount varies annually. A Note from OpenSecrets is quoted as follows:

“NOTE: Figures on this page are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on January 23, 2020 and includes spending from January 1 – December 31. Prior years include spending from January through December.”

Source: OpenSecret.org Center for Responsive Politics

 

7. COP FINANCIAL STRENGTH

COP FINANCIAL STRENGTH

DATA

Working capital 9,870,000,000
Total assets 70,514,000,000
Sales 32,567,000,000
EBIT 7,278,000,000
Market value of equity $52,348,000,000
Book value of total liabilities 35,533,000,000
Retained earnings 39,742,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.1400 1.20 0.17
B – Retained Earnings / Total Assets 0.56 1.40 0.79
C – EBIT / Total Assets 0.10 3.30 0.34
D – Market Value of Equity / Book Value of Total Liabilities 1.47 0.60 0.88
E – Sales / Total Assets 0.46 1.0 0.46
Z-Score 2.64

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation:

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

The Z-Score of COP was 2.64.  According to Dr. Edward Altman a grading scale of 1.8 – 3.0 is more likely to declare bankruptcy. The figures used above are based on the latest financial reports. The Altman score weights different profitability and liquidity metrics to arrive at the overall score. This measurement is not calculated for the purpose of estimating the company will declare bankruptcy but it helps in comparing other companies that have become insolvent.

Hence, this measurement categorized the profitability or return on investment, liquidity, leverage and the efficiency in operating.

Conclusion

ConocoPhillips has been in the industry for more than a century and has been managed successfully. The company is stable and has a strong balance sheet and is  profitable. 

CITATION

http://www.conocophillips.com/

https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2019&id=D000000303

https://www.morningstar.com/stocks/xnys/cop/quote

Researched and written by Criselda

PepsiCo Inc (PEP) Extended Graph Analysis

March 5th, 2020 Posted by Extended Analysis No Comment yet

Company Profile

PEP logo

PepsiCo is leading in the food and beverage multinational company, well known for its product diversification selling products in around 200 countries and territories. Their products caters to the tastes of their customers young and adults. They faced the challenge of providing their consumers nutritious food and beverages. Its main competitors is The Coca-Cola Company.

PepsiCo was founded by Caleb Bradham, headquartered in Purchase, Harrison, New York, United States. It is a public company registered under NASDAQ with ticker symbol PEP.

 

PepsiCo (PEP) Extended Graph Analysis

 

1. PEP CASH FLOW

PEP CASH FLOW

2015 2016 2017 2018 2019 TTM
Net cash flow provided by operating activites 10,580,000,000 10,404,000,000 9,994,000,000 9,415,000,000 9,649,000,000 9,649,000,000
Net cash used for investing activities -3,569,000,000 -7,148,000,000 -4,403,000,000 4,564,000,000 -6,437,000,000 -6,437,000,000
Net cash provided by (used for) financing activities -3,828,000,000 -2,942,000,000 -4,186,000,000 -13,769,000,000 -8,489,000,000 -8,489,000,000
Capital expenditure -2,758,000,000 -3,040,000,000 -2,969,000,000 -3,282,000,000 -4,232,000,000 -4,232,000,000
Free cash flow 7,822,000,000 7,364,000,000 7,025,000,000 6,133,000,000 5,417,000,000 5,417,000,000
Working Capital 5,453,000,000 5,954,000,000 10,525,000,000 -245,000,000 -2,816,000,000 -2,816,000,000

Facts:

  • Cash from operating activities was $9.649 billion in the trailing twelve months.
  • Cash used for investing activities was -$6.437 billion in the trailing twelve months.
  • Net cash from financing activities was -$8.489 billion in the trailing twelve months.
  • Capital expenditure was -$4.232 billion in the trailing twelve months.
  • Free cash flow was $5.417 billion in the trailing twelve months.
  • Working capital was -$2.816 billion in the trailing twelve months.

Explanation:

  • Cash from operating increased 2.49% from 2018 to trailing twelve months.
  • Investing activities were purchase of property, plant and equipment and acquisitions.
  • Financing activities were debt repayment, common stock repurchased and dividend payments.
  • Capital expenditure was investment in property, plant and equipment.
  • Free cash flow decreased 12 percent from 2018.
  • Working capital was negative from 2018, current liabilities were higher than the current assets.

Interpretation

The company was able to provide cash from its operating activities in the last five years. PEP had a number of business acquisitions in recent years as one of their strategic moves.

 

2. PEP BALANCE SHEET

PEP BALANCE SHEET

2015 2016 2017 2018 2019
Total cash 12,009,000,000 16,125,000,000 19,510,000,000 8,993,000,000 5,738,000,000
Current Assets 23,031,000,000 27,089,000,000 31,027,000,000 21,893,000,000 17,645,000,000
Net property, plant and equipment 16,317,000,000 16,591,000,000 17,240,000,000 17,589,000,000 20,853,000,000
Total non-current assets 46,636,000,000 47,040,000,000 48,777,000,000 55,755,000,000 60,902,000,000
Total assets 69,667,000,000 74,129,000,000 79,804,000,000 77,648,000,000 78,547,000,000
Current liabilities 17,578,000,000 21,135,000,000 20,502,000,000 22,138,000,000 20,461,000,000
Non-current liabilities 40,166,000,000 41,899,000,000 48,413,000,000 40,992,000,000 43,300,000,000
Total liabilities 57,744,000,000 63,034,000,000 68,915,000,000 63,130,000,000 63,761,000,000
Retained earnings 50,472,000,000 52,518,000,000 52,839,000,000 59,947,000,000 61,946,000,000
Stockholders equity 11,923,000,000 11,095,000,000 10,889,000,000 14,518,000,000 14,786,000,000

Facts:

  • Total cash was $5.738 billion in 2019.
  • Current assets were $17.645 billion in 2019.
  • Net property, plant and equipment was $20.853 in 2019.
  • Total non-current assets were $60.902 billion in 2019.
  • Total assets were $78.547 billion in 2019.
  • Current liabilities were $20.641 billion in 2019.
  • Non-current liabilities were $43.300 in 2019.
  • Total liabilities were $63.761 in 2019.
  • Retained earnings were $61.946 in 2019.
  • Stockholders equity was $14.786 in 2019

Explanation:

  • Total cash represents 7.31% of total assets.
  • Current assets represent 22.46% of total assets.
  • Net property, plant and equipment represents 26.55% of total assets.
  • Total non-current assets represent 77.54% of total assets.
  • Total assets grew 13% in five years.
  • Current liabilities represent 32% of total liabilities.
  • Non-current liabilities represent 68% of total liabilities.
  • Total liabilities represents 81% to total liabilities and equity.
  • Stockholder equity represents 19% of total liabilities and equity.

Interpretation

The company is highly leveraged, using four-fifth of creditors money in its business operation, nearly 20% of investors money is utilized in the operation. In other words, the creditors have more stake than the investors. 

 

3. PEP INCOME AND MARKET

PEP INCOME AND MARKET

2015 2016 2017 2018 2019 2020
Revenue 63,056,000,000 62,799,000,000 63,525,000,000 64,661,000,000 67,161,000,000 67,161,000,000
EBIT 9,712,000,000 9,785,000,000 10,509,000,000 10,110,000,000 10,291,000,000 10,291,000,000
Net Income 5,452,000,000 6,329,000,000 4,857,000,000 12,515,000,000 7,314,000,000 7,314,000,000
EBITDA 10,828,000,000 12,263,000,000 13,122,000,000 13,113,000,000 12,879,000,000 12,879,000,000
Market Capitalization 144,684,000,000 150,059,000,000 170,543,000,000 155,666,000,000 190,108,000,000 197,550,000,000
Intrinsic Value 209,836,396,353 745,025,154,189 839,073,420,473 2,631,653,205,144 4,029,094,790,996 4,718,747,139,220

Facts:

  • Revenue was $67.161 billion in trailing twelve months.
  • EBIT was $10.291 billion in the trailing twelve months.
  • Net income was $7.314 billion in the trailing twelve months.
  • EBITDA was $12.879 billion in the trailing twelve months.
  • The market capitalization was $197.550 billion.
  • Intrinsic value was $4.719 trillion in the trailing twelve months.

Explanation:

  • Revenue grew 7% in five years and from 2018 it grows 3.87%.
  • EBIT grew 6% in five years and shows an increase of 1.79% from 2018.
  • Net income grew 34% in five years. It has a negative growth of 41.56% from 2018.
  • EBITDA grew 19% in five years. It has a negative growth from 2018 at 1.78%.
  • Market capitalization was erratic in movement in the last five years and it increased 4% from 2019 to the last quarter.
  • The calculated intrinsic value shows a very high value at $4.719 trillion.

Interpretation

The company is investing heavily in advertising and marketing, the reason its sales, general and administrative expense was high at 72% of gross profit which impacted the net income.

 

4. PEP FINANCIAL RATIOS

PEP FINANCIAL RATIOS

2015 2016 2017 2018 2019 2020
Asset turnover (average) 0.90 0.87 0.83 0.82 0.86 0.86
Return on assets % 7.77 8.79 6.31 15.89 9.37 9.37
Return on equity % 37.20 55.14 44.32 98.66 49.92 49.92
Debt/Equity 2.46 2.72 3.12 1.95 1.97 1.97
Return on invested capital % 13.38 15.55 11.00 27.64 17.11 17.11
Interest coverage 8.67 7.37 9.34 7.03 9.20 9.20

Facts:

  • Asset turnover was 0.86 in the trailing twelve months.
  • Return on asset was 9.37% in the trailing twelve months.
  • Return on equity was 49.92% in the trailing twelve months.
  • Return on invested capital was 17.11% in the trailing twelve months.
  • Interest coverage was 9.20 in the trailing twelve months.

Explanation:

  • Asset turnover means that the company is generating $0.86 of sales for every $1 investment in assets.
  • Return on assets means for every $1 invested in assets the company generates 9.37 cents of net income.
  • Return on equity indicates that for every $1 of shareholders equity, PEP generated 49 or 50 cents in profit.
  • Return on invested capital indicates that the invested capital yielded 17.11 percent of return.
  • Interest coverage indicates that the company earns 9 times earnings than its current interest payment.

Interpretation

The company’s financial ratios show acceptable ratios. The company is liquid

 

5. PEP KEY EXECUTIVE COMPENSATION

PEP KEY EXECUTIVE COMPENSATION

Name/Title 2014 2015 2016 2017 2018
Key Executive Compensation 37,399,250 48,405,262 56,275,124 63,116,455 65,489,721
Indra K. Nooy/ Chairman of the Board and Chief Executive Officer 22,485,574 26,444,990 29,783,416 31,082,648 24,491,117
Ramon L Laquarta/Chairman of the Board and CEO 5,655,039 6,113,574 10,157,245 10,827,396
Albert P. Carey/CEO North America 7,712,149 7,744,388 10,071,299 10,160,310 7,868,118
Laxman Narasimhan/Global Chief Commercial Officer and CEO Latin America 7,009,990
Silviu Popovici/CEO Europe Sub Saharan Africa 6,151,034
Hugh F. Johnston/Vice Chairman, Executive Vice President and Chief Financial Officer 7,201,527 8,560,845 10,306,835 11,716,252 9,142,066

Facts:

  • The key executive compensation was $65,489,721 in 2018.
  • The CEO compensation was $24,491,117 in 2018.
  • Chairman of the Board and CEO compensation was $10,827,396 in 2018.
  • CEO North America compensation was $7,868,118 in 2018.
  • Chief Commercial Officer and CEO Latin America compensation was $7,009,990 in 2018.
  • CEO Europe Sub Saharan Africa compensation was 6,151,034 in 2018.
  • Vice Chairman, Executive Vice President and Chief Financial Officer compensation was $9,142,066 in 2018.

Explanation:

  • The total key executive compensation represents 0.90% of net income.
  • CEO compensation represents 37.40% of the total key executive compensation.
  • Chairman of the Board and CEO compensation represents 16.53% of the total key executive compensation.
  • CEO North America compensation represents 12% of the total key executive compensation.
  • Chief Commercial Officer and CEO Latin America compensation represents 11% of the total key executive compensation.
  • CEO Europe Sub Saharan Africa compensation represents 9.39% of the total key executive compensation.
  • Vice Chairman, Executive Vice President and Chief Financial Officer compensation represents 14% of the total key executive compensation.

Interpretation

The company’s key executive compensation represents 0.90% of the net income.

 

6. PEP LOBBYING AND CONTRIBUTIONS

PEP LOBBYING AND CONTRIBUTIONS

Period USD Period USD
1998 960,000 2009 9,373,000
1999 1,300,000 2010 6,874,800
2000 1,320,000 2011 3,260,000
2001 1,035,000 2012 3,330,000
2002 960,000 2013 3,720,000
2003 860,000 2014 3,510,000
2004 720,000 2015 4,470,000
2005 740,000 2016 3,140,000
2006 880,318 2017 2,880,000
2007 1,000,636 2018 3,470,000
2008 1,096,000 2019 3,490,000

Explanation:

PepsiCo has been spending annual lobbying and contributions since 1998. The amount varies annually. NOTE: Figures on this page are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on January 23, 2020 and includes spending from January 1 – December 31. Prior years include spending from January through December.

Source: OpenSecret.org Center for Responsive Politics

 

6. PEP FINANCIAL STRENGTH

PEP FINANCIAL STRENGTH

DATA

Working capital -$2,816,000,000
Total assets $78,547,000,000
Sales $67,161,000,000
EBIT $10,291,000,000
Market value of equity $197,550,000,000
Book value of total liabilities $63,761,000,000
Retained earnings $61,946,000,000

 

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets -0.0359 1.20 -0.04
B – Retained Earnings / Total Assets 0.79 1.40 1.10
C – EBIT / Total Assets 0.13 3.30 0.43
D – Market Value of Equity / Book Value of Total Liabilities 3.10 0.60 1.86
E – Sales / Total Assets 0.86 1.0 0.86
Z-Score 4.21

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

The overall Z-Score of PEP was 4.21, the grading scale for 3.00 and over according to Altman indicates that the company will not declare bankruptcy. This measurement is not calculated for the purpose of estimating the company will declare bankruptcy but it helps in comparing other companies that have become insolvent.

Conclusion

PepsiCo was liquid and has great potential for accelerating its revenue in the long run due to its diversification strategy. The company manufactures and sells a variety of food and beverages that caters to young people and adults. Although the company is highly leveraged, PEP is stable and has a strong financial strength.

CITATION

https://www.opensecrets.org/federal-lobbying/firms/summary?cycle=1998&id=D000000200

https://www.pepsico.com/about/about-the-company

https://www.morningstar.com/stocks/xnas/pep/quote

Researched and written by Criselda

Chevron Corp (CVX) Extended Graph Analysis

February 20th, 2020 Posted by Extended Analysis No Comment yet

Company Profile

CVX logo

Chevron Corporation is a public multinational energy corporation traded as NYSE:CVX, headquartered in San Ramon, California USA. Chevron and was founded on September 10, 1879. CVX is one of the largest oil companies as of 2019. The company produced fuel products, base oils and process oils, lubricants, chemicals, aviation fuels and marine fuels. The company is engaged in hydrocarbon exploration and production and refining. 

 

Chevron Corp (CVX) Extended Graph Analysis

1. CVX CASH FLOW

CVX CASH FLOW

2014 2015 2016 2017 2018 2019
Net cash flow provided by operating activities 31,475,000,000 19,456,000,000 12,846,000,000 20,515,000,000 30,618,000,000 30,808,000,000
Net cash provided by (used for) financing activities -4,999,000,000 2,815,000,000 25,000,000 -14,554,000,000 -13,699,000,000 -15,243,000,000
Net cash used for investing activities -29,893,000,000 -23,808,000,000 -16,852,000,000 -8,201,000,000 -12,290,000,000 -13,468,000,000
Capital expenditure -35,407,000,000 -29,504,000,000 -18,109,000,000 -13,404,000,000 -13,792,000,000 -13,897,000,000
Free cash flow -3,932,000,000 -10,048,000,000 5,263,000,000 7,111,000,000 16,826,000,000 16,911,000,000

Facts:

  • Net cash flow provided by operating activities were $30.8 billion in the trailing twelve months.
  • Net cash used for investing activities was -$13.5 billion in the trailing twelve months.
  • Cash provided by (used for) financing activities was -$15 billion in the trailing twelve months.
  • Capital expenditure was -$13.9 billion in the trailing twelve months.
  • Free cash flow was $16.9 billion in the trailing twelve months.

Explanation

  • Net income and depreciation have a significant amount in cash provided by operating activities.
  • Cash used for investing activities were investment in property, plant and equipment, and purchases of investment.
  • Cash provided by (used for) financing activities were debt issued and repayment, and dividend payments.
  • Capital expenditure is investment in property, plant and equipment.
  • Free cash flow had less one percent increase from 2018 to the trailing twelve months.

Interpretation

CVX was able to provide cash from operations in the last five years. Moreover, the company was able to generate a free cash flow from 2017 to the trailing twelve months.

 

2. CVX BALANCE SHEET

CVX BALANCE SHEET

2014 2015 2016 2017 2018 2019
Total cash 13,215,000,000 11,332,000,000 7,001,000,000 4,822,000,000 10,345,000,000 11,755,000,000
Current Assets 42,232,000,000 35,347,000,000 29,619,000,000 28,560,000,000 34,021,000,000 33,988,000,000
Net property, plant and equipment 183,173,000,000 188,396,000,000 182,186,000,000 177,712,000,000 169,207,000,000 164,363,000,000
Total non-current assets 223,794,000,000 230,756,000,000 230,459,000,000 225,246,000,000 219,842,000,000 222,549,000,000
Total assets 266,026,000,000 266,103,000,000 260,078,000,000 253,806,000,000 253,863,000,000 256,537,000,000
Current liabilities 31,926,000,000 26,464,000,000 31,785,000,000 27,737,000,000 27,171,000,000 30,233,000,000
Non-current liabilities 79,072,000,000 86,923,000,000 82,737,000,000 77,945,000,000 72,138,000,000 70,463,000,000
Total liabilities 110,998,000,000 113,387,000,000 114,522,000,000 105,682,000,000 99,309,000,000 100,696,000,000
Retained earnings 184,987,000,000 181,578,000,000 173,046,000,000 174,106,000,000 180,987,000,000 183,783,000,000
Stockholders equity 155,028,000,000 152,716,000,000 145,556,000,000 148,124,000,000 154,554,000,000 155,841,000,000

Facts:

  • Total cash was $11.8 billion in Q3 2019.
  • Current assets were $34 billion in Q3 2019.
  • Net property, plant and equipment was $164 billion in Q3 2019.
  • Total non-current assets were $223 billion in Q3 2019.
  • Total assets were $257 billion in Q3 2019.
  • Current liabilities were $30 billion in Q3 2019.
  • Non-current liabilities were $70 billion in Q3 2019.
  • Total liabilities were $107 billion in Q3 2019.
  • Retained earnings were $184 billion in Q3 2019.
  • Stockholders equity was $156 billion in Q3 2019.

Explanation

  • Total cash was erratic in movement in the last five years. It grows 14 percent from 2018. It represents 35 percent of current assets.
  • Current assets were erratic in movement in the last five years. It represents 13 percent of total assets.
  • Net property, plant and equipment represents 74 percent of total non-current assets.
  • Total non-current assets represents 87 percent of total assets.
  • Total assets grew 1 percent from 2018.
  • Current liabilities represent 30 percent of total liabilities.
  • Non-current liabilities represent 70 percent of total liabilities.
  • Total liabilities was 39 percent of total liabilities and stockholders equity.
  • Retained earnings was 118 percent of equity.
  • Stockholders equity represents 61 percent of total liabilities and shareholders equity.

Interpretation

The balance sheet is liquid. The company’s current assets are sufficient for its current obligations. CVX is using more of the shareholders investment than the sources from creditors in the usual business operations. In other words the shareholders have more stake than the creditors in the trailing twelve months.

3. CVX INCOME AND MARKET

CVX INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Revenue 200,494,000,000 129,925,000,000 110,215,000,000 134,674,000,000 158,902,000,000 145,629,000,000
EBIT 19,726,000,000 -3,710,000,000 -6,216,000,000 2,480,000,000 14,446,000,000 13,295,000,000
Net Income 19,241,000,000 4,587,000,000 -497,000,000 9,195,000,000 14,824,000,000 13,264,000,000
Market Capitalization 211,347,120,000 169,378,000,000 222,190,000,000 237,783,000,000 207,010,000,000 202,588,000,000
Intrinsic Value 209,073,862,419 212,683,314,721 333,795,619,400 423,503,597,323 716,272,790,115 995,200,421,499

Facts:

  • Revenue was $146 billion in the trailing twelve months.
  • EBIT was $13 billion in the trailing twelve months.
  • Net income was $13 billion in the trailing twelve months.
  • The market capitalization was $202.588 billion in the trailing twelve months.
  • Intrinsic value was $995 billion in the trailing twelve months.

Explanation:

  • Revenue was erratic in movement. It was down 8 percent from 2018.
  • EBIT represents 9 percent of revenue in the trailing twelve months.
  • Net income was 9 percent of revenue in the trailing twelve months.
  • Market capitalization was erratic in movement in the last five years. It shows a decrease of 2 percent from 2018.
  • Intrinsic value was higher than the market capitalization by 3x in the trailing twelve months.

Interpretation

The company was able to generate sufficient revenue for the operation of the business in the trailing twelve months.

 

4. CVX FINANCIAL RATIOS

CVX FINANCIAL RATIOS

2014 2015 2016 2017 2018 TTM
Asset turnover (average) 0.77 0.49 0.42 0.52 0.63 0.57
Return on assets % 7.4 1.72 -0.19 3.58 5.84 5.17
Return on equity % 12.65 2.98 -0.33 6.26 9.8 8.57
Debt/Equity 0.15 0.22 0.24 0.23 0.19 0.16
Return on invested capital % 10.92 2.45 -0.2 5.02 8.17 7.31
Interest coverage 0 0 -9.75 31.04 28.51 24.25

Facts:

  • Asset turnover was averaging 0.57 in the trailing twelve months.
  • Return on asset was 5.17 percent in the trailing months.
  • Return on equity was $8.57 percent in the trailing twelve months.
  • Debt/Equity was 0.16 in the trailing twelve months.
  • Return on invested capital was 7.31 percent in the trailing twelve months.
  • Interest coverage was 24.25 in the trailing twelve months.

Explanation

  • Asset turnover indicates that for every dollar invested in assets, the company generates 57 cents of sales.
  • Return on asset indicates that for every dollar invested in assets, CVX generated 5.17 cents of net income.
  • Return on equity indicates that for every dollar of the capital that the shareholders invested, the company generates 8.57 cents profit.
  • Debt to Equity indicates that the company has $0.16 debt for every dollar of assets.
  • Return on invested capital indicates that the company generated a 7.31 percent return from the company’s investments.
  • The interest coverage indicates that the company has the ability to make interest payments on its debt in due date.

Interpretation

The company has the ability to generate cash for its daily business operations. CVX is using more of the investors money than creditors.

 

5. CVX KEY EXECUTIVE COMPENSATION

CVX KEY EXECUTIVE COMPENSATION

2014 2015 2016 2017 2018
Key Executive Compensation 44,239,015 46,489,214 57,690,075 64,632,139 55,846,538
John S. Watson/Chairman of the Board and Chief Executive Officer 25,970,417 22,029,809 24,657,491 24,781,568 1,241,499
Patricia E. Yarrington/Vice President and Chief Financial Officer 9,781,357 7,379,867 6,541,425 8,152,053 7,159,079
Michael K. Wirth/Vice Chairman of the Board and Executive Vice President, Midstream & Development 8,487,241 8,123,840 9,129,645 11,669,681 20,640,623
James William Johnson/Executive Vice President, Upstream 8,955,698 9,416,320 11,024,515 10,925,982
Pierre R. Breber/Executive Vice President, Downstream & Chemicals 8,030,044
Joseph C. Geagea/Executive Vice President, Technology, Projects and Services 7,945,194 9,004,322 7,849,411

Facts:

  • Total key executive compensation was $55,846,538 in 2018.
  • Chairman of the Board and CEO compensation was $1,241,499 in 2018.
  • Vice President and CFO compensation was $7,159,079 in 2018.
  • Vice Chairman of the Board and EVP Mainstream & Development compensation was $20,640,623 in 2018.
  • EVP Upstream compensation was $10,925,982 in 2018.
  • EVP Downstream and Chemicals compensation was $8,030,044 in 2018.
  • EVP Technology, Projects and Services compensation was $7,849,411 in 2018.

Explanation:

  • The key executive total compensation represents 0.38 percent of net income in 2018.
  • Chairman of the Board and CEO compensation represents 2 percent of the total key executive compensation.
  • Vice President and CFO compensation represents 13 percent of the total key executive compensation in 2018.
  • Vice Chairman of the Board and EVP Mainstream & Development compensation represents 37 percent of the total key executive compensation in 2018.
  • EVP Upstream compensation represents 20 percent of the total key executive compensation in 2018.
  • EVP Downstream and Chemicals compensation represents 14 percent of the total key executive compensation in 2018.
  • EVP Technology, Projects and Services compensation  represents 14 percent of the total key executive compensation in 2018.

Interpretation

The company is spending less than one percent of its net income in its key executive compensation.

 

6. CVX LOBBYING AND CONTRIBUTIONS

CVX LOBBYING AND CONTRIBUTIONS

PERIOD USD PERIOD USD
2019 9,270,000 2008 12,994,000
2018 9,600,000 2007 9,030,000
2017 9,290,000 2006 7,480,000
2016 7,470,000 2005 9,490,000
2015 7,200,000 2004 5,220,000
2014 8,280,000 2003 4,620,000
2013 10,530,000 2002 4,620,000
2012 9,550,000 2001 1,519,296
2011 9,510,000 2000 1,680,000
2010 13,130,000 1999 2,040,000
2009 20,815,000 1998 2,969,825

Explanation:

The company has been lobbying and contributions to politicians yearly since 1998. A note from Center for Responsive Politics were quoted below:

NOTE: Figures on this page are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on January 23, 2020 and includes spending from January 1 – December 31. Prior years include spending from January through December.”

Interpretation

The company’s total lobbying and contributions in 2019 represents 0.07 percent of net income in 2019.

 

7. CVX FINANCIAL STRENGTH

CVX FINANCIAL STRENGTH

DATA USD
Working capital 6,850,000,000
Total assets 253,683,000,000
Sales 145,629,000,000
EBIT 13,295,000,000
Market value of equity 211,134,800,000
Book value of total liabilities 99,309,000,000
Retained earnings 180,987,000,000

 

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.0270 1.20 0.03
B – Retained Earnings / Total Assets 0.71 1.40 1.00
C – EBIT / Total Assets 0.05 3.30 0.17
D – Market Value of Equity / Book Value of Total Liabilities 2.13 0.60 1.28
E – Sales / Total Assets 0.57 1.0 0.57
Z-Score     3.05

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation:

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

Chevron Corporation. has a Z-Score of 3.05. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy in near future. In other terms, the company is not close to insolvency. The main factors of this statistical measurement are profitability, liquidity, leverage and efficiency.

Overview

The company is capable of producing sufficient revenue for the operation of the business and able to produce free cash flow in the last three years.

 

Citation

https://www.chevron.com/about

https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=1998&id=D000000015

https://www.morningstar.com/stocks/xnys/cvx/quote

Researched and written by Criselda

Samsung Electronics Co Ltd (005930) Extended Graph Analysis

February 12th, 2020 Posted by Extended Analysis No Comment yet

Company Profile

Samsung logo

Samsung Electronics Co Ltd is a multiple consumer electronics business which manufactures and sells IT and Mobile Communications and Device Solutions around the world. They have diversified products from home appliances to health and medical equipment aside from smartphones, semiconductor chips, printers and telecom network equipment. Samsung was ranked as one of the top 10 global in technology..

Samsung is a public company traded as KRX: 005930. The company was founded on January 13, 1989 by Lee Byung-chul. The company was headquartered in Suwon, South Korea.

 

Samsung Electronics Co Ltd (005930) Extended Graph Analysis

 

1. SAMSUNG CASH FLOW

SAMSUNG CASH FLOW

2014 2015 2016 2017 2018 2019
Net cash flow provided by operating activities 36,975,389,000,000 40,061,761,000,000 47,385,644,000,000 62,162,041,000,000 67,031,863,000,000 48,093,855,000,000
Net cash used for investing activities -32,806,408,000,000 -27,167,787,000,000 -29,658,675,000,000 -49,385,216,000,000 -52,240,453,000,000 -37,225,406,000,000
Net cash provided by (used for) financing activities -3,057,109,000,000 -6,573,509,000,000 -8,669,514,000,000 -12,560,867,000,000 -15,090,222,000,000 -18,480,578,000,000
Capital expenditure -23,367,250,000,000 -27,382,103,000,000 -25,190,641,000,000 -43,775,974,000,000 -30,576,923,000,000 24,496,471,000,000
Free cash flow 13,608,139,000,000 12,679,658,000,000 22,195,003,000,000 18,386,067,000,000 36,454,940,000,000 23,597,384,000,000

Facts:

  • Net cash flow from operations was KRW 48 trillion. In the trailing twelve months.
  • Net cash used for investing activities  was -KRW 37 trillion in the trailing twelve months.
  • New cash provided by (used for) financing activities was -KRW 18 trillion in the trailing twelve months.
  • Capital expenditure was KRW 24 trillion in the trailing twelve months.
  • Free cash flow was KRW 23.597 trillion in the trailing twelve months.

Explanation:

  • Net income, depreciation and amortization have a significant amount in the cash from operating activities.
  • Net cash from operations were increasing year-over-year from 2014 to 2018. Moreover, the growth was 81 percent in five years.
  • The net cash used for investing activities were property, plant and equipment and purchases of investments.
  • The net cash provided by (used for) financing activities were debt repayment, dividends paid and other financing activities.
  • Capital expenditures were purchases of property, plant and equipment, and purchases of intangibles.
  • Free cash flow was erratic in movement in the last five years, however the company has managed to provide a free cash flow for the business operations.

Interpretation

The cash flow shows that the company is liquid, the management managed to provide a free cash flow per share at KRW 4555.25 in the trailing twelve months. Cash was provided for dividends payment and debt repayment. The net income was sufficient to provide cash from operations.

 

2. SAMSUNG BALANCE SHEET

SAMSUNG BALANCE SHEET

2014 2015 2016 2017 2018 2019
Total cash 61,817,340,000,000 71,493,074,000,000 88,182,313,000,000 83,184,201,000,000 100,939,943,000,000 101,946,477,000,000
Current Assets 115,146,025,999,999 124,814,725,000,000 141,429,704,000,000 146,982,464,000,000 174,697,424,000,000 186,042,134,000,000
Net property, plant and equipment 80,872,950,000,000 86,477,110,000,000 91,473,041,000,000 111,665,648,000,000 115,416,724,000,000 116,855,571,000,000
Total non-current assets 115,276,932,000,000 117,364,796,000,000 120,744,620,000,000 154,769,626,000,000 164,659,820,000,000 167,343,851,000,000
Total assets 230,422,957,999,999 242,179,521,000,000 262,174,324,000,000 301,752,090,000,000 339,357,244,000,000 353,385,985,000,000
Current liabilities 52,013,912,999,999 50,502,909,000,000 54,704,095,000,000 67,175,114,000,000 69,081,510,000,000 63,303,192,000,000
Non-current liabilities 16,227,320,000,000 18,799,845,000,000 21,045,901,000,000 27,363,560,000,000 30,206,741,000,000 34,679,343,000,000
Total liabilities 68,241,232,999,999 69,302,754,000,000 75,749,996,000,000 94,538,674,000,000 99,288,251,000,000 97,982,535,000,000
Retained earnings 169,529,603,000,000 185,132,014,000,000 193,086,317,000,000 215,811,200,000,000 242,598,956,000,000 251,761,348,000,000
Stockholders equity 162,181,725,000,000 172,876,767,000,000 186,424,628,000,000 207,213,416,000,000 240,068,993,000,000 255,403,450,000,000

Facts

  • Total cash was KRW 101.9 trillion in Q3 2019.
  • Current assets were KRW 186 trillion in Q3 2019.
  • Net property, plant and equipment was KRW 116.856 trillion in Q3 2019.
  • Non-current assets are KRW 167 trillion in Q3 2019.
  • Total assets are KRW 353 trillion in Q3 2019.
  • Current liabilities are KRW 63 trillion in Q3 2019.
  • Non-current liabilities are KRW 34.7 trillion in Q3 2019.
  • Total liabilities were KRW 97.982 trillion in Q3 2019.
  • Retained earnings were KRW 252 trillion in Q3 2019.
  • Stockholders equity was KRW 255 trillion in Q3 2019.

Explanation

  • Total cash was increasing year over year and has a growth of 63 percent in five years.
  • Current assets increase year-over-year and have a growth of 62 percent in five years.
  • Net property, plant and equipment increase year-over-year and have a growth of 44 percent in five years.
  • Total non-current assets increase year-over-year and have a growth of 45 percent in five years.
  • Total assets increase year-over-year and have a growth of 53 percent in five years. 
  • Current liabilities represent 65 percent of the total liabilities.
  • Non-current liabilities represent 35 percent of the total liabilities.
  • Total liabilities represent 28 percent of the total liabilities and stockholders equity.
  • Retained earnings represent 99 percent of stockholders equity and has a growth of 49 percent in five years.
  • Stockholders equity represents 72 percent of total liabilities and equity.

Interpretation

The company has a strong balance sheet and is liquid and financially healthy. It has 3 times current assets than current liabilities. Its liquid assets are enough to pay for its current obligations. The stockholders have more stake in the company than of the creditors. It is using more of the stockholders’ investment for the operation of the business.

 

 3. SAMSUNG INCOME AND MARKET

SAMSUNG INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Revenue 208,205,987,000,000 200,653,482,000,000 201,866,745,000,000 239,575,376,000,000 243,771,415,000,000 229,781,171,000,000
EBIT 25,025,071,000,000 26,413,442,000,000 29,240,672,000,000 53,645,038,000,000 58,886,669,000,000 31,408,838,000,000
Net Income 23,082,499,000,000 18,694,628,000,000 22,415,655,000,000 41,344,569,000,000 38,573,066,000,000 21,625,415,000,000
Market Capitalization 200,085,060,000,000 180,755,714,000,000 245,868,758,000,000 341,450,038,000,000 257,157,237,000,000 375,782,850,000,000
Intrinsic Value 102,886,880,946,227 152,775,056,577,764 192,305,845,455,446 589,116,872,065,884 544,412,951,961,468 619,972,272,761,983

Facts:

  • Revenue was KRW 230 trillion in the trailing twelve months.
  • EBIT was KRW 31 trillion in the trailing twelve months.
  • Net income was KRW 22 trillion in the trailing twelve months.
  • Market capitalization was KRW 376 trillion in the trailing twelve months.
  • Intrinsic value was KRW 619.972 trillion in the trailing twelve months.

Explanation:

  • Revenue was averaging KRW 221 trillion in five years and has a growth of 17 percent from 2014 to 2018..
  • EBIT was averaging KRW 37 trillion and has a growth of 135 percent from 2014 to 2018. 
  • EBIT represents 14 percent of the revenue.
  • Net income was averaging KRW 28 trillion and has a growth of 67 percent from 2014 to 2018.
  • Net income represents 9 percent of the revenue.
  • Market capitalization was erratic in movement in the last five years, however it has a growth of 88 percent in five five years.
  • Intrinsic value is greater by 65 percent against market capitalization.

Interpretation

The company was profitable and the management is capable of generating sufficient revenue for the business operation. The financials have not seen any negative bottomline in the last five years.

 

4. SAMSUNG FINANCIAL RATIOS

SAMSUNG FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset turnover (average) 0.93 0.85 0.8 0.85 0.76 0.67
Return on assets % 10.39 7.91 8.89 14.66 12.03 6.26
Return on equity % 15.07 11.17 12.49 21.02 17.26 8.83
Debt/Equity 0 0.01 0.01 0.01 0 0.01
Return on invested capital % 13.41 10.01 11.23 19.01 15.56 7.66
Interest coverage 48.01 34.43 53.25 86.74 91.66 48.71

Facts:

  • Asset turnover was averaging 0.67 in the trailing twelve months.
  • Return on asset was 6.26 percent in the trailing twelve months.
  • Return on equity was 8.83 percent in the trailing twelve months.
  • Debt/Equity ratio was 0.01 in the trailing twelve months.
  • The return on invested capital was 7.66 percent in the trailing twelve months.
  • Interest coverage was 48.71 in the trailing twelve months.

Explanation:

  • Asset turnover indicates that for every one KRW in asset, the company generates 67 chon of sales. 
  • Return on asset indicates that for every KRW invested in assets, the company generates 6.3 chon of net income.
  • Return on equity indicates that for every KRW of shareholders equity, the company generated 8.83 chon of profit.
  • Debt/Equity ratio means that the company has KRW 0.01 in debt for every KRW of asset.
  • Return on invested capital indicates that the return generated from its investment was 7.66 percent.
  • Interest coverage indicates that the company has more than enough cash to pay for the interest payment.

Interpretation

The company is liquid and financially healthy.

5. SAMSUNG KEY EXECUTIVE COMPENSATION

Name Title
Kinam King Vice Chairman and CEO
Hyun Suk King President and CEO
Dong Jin Koh President and CEO
Oh-Hyung Kwon Executive Director,Vice Chairman and CEO
Boo-Keun Yoon Executive Director,President and Co-CEO
Jong-Kyun Shin Executive Director,President and Co-CEO
Sang-Hoon Lee Executive Director,President and Chief Financial Officer

Facts:

The company does not disclose its key executive compensation. 

 

6. SAMSUNG LOBBYING AND CONTRIBUTIONS

SAMSUNG LOBBYING AND CONTRIBUTIONS

DATA

Period USD Period USD
1998 83,070,000 2009 130,550,000
1999 52,050,000 2010 131,000,000
2000 80,660,000 2011 128,440,000
2001 66,060,000 2012 124,320,000
2002 75,870,000 2013 130,730,000
2003 89,829,000 2014 119,520,000
2004 97,010,000 2015 124,770,000
2005 110,710,000 2016 121,150,000
2006 120,510,000 2017 147,520,000
2007 134,380,000 2018 147,750,000
2008 137,380,000 2019 156,390,837

Explanation

The company, Samsung Electronics Mfg and Equipment have been incurring lobbying and contributions expenses since 1998 and onwards. The figures above are the calculations by the Center of Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on January 23, 2020 from January 1 to December 31. Prior years include spending from January through December, according to the Center for Responsive Politics.

Interpretation

Total spent on Electronics Mfg and Equipment in 2019 was USD 156,390,837, the number of clients was 262.

The number of lobbyists /percent of former government employees was 1,089 at 72.73 percent.

Source:  OpenSecrets.org Center for Responsive Politics

 

7. SAMSUNG FINANCIAL STRENGTH

SAMSUNG FINANCIAL STRENGTH

DATA

Working capital 105,615,914,000
Total assets 339,357,244,000,000
Sales 229,781,171,000,000
EBIT 31,408,838,000,000
Market value of equity 375,782,850,000,000
Book value of total liabilities 99,288,251,000,000
Retained earnings 242,598,956,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.0003 1.20 0.00
B – Retained Earnings / Total Assets 0.71 1.40 1.00
C – EBIT / Total Assets 0.09 3.30 0.31
D – Market Value of Equity / Book Value of Total Liabilities 3.78 0.60 2.27
E – Sales / Total Assets 0.68 1.0 0.68
Z-Score     4.25

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

Explanation:

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

Samsung Electronics Co Ltd. has a Z-Score of 4.25. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy in near future. In other terms, the company is not close to insolvency. The main factors of this statistical measurement are profitability, liquidity, leverage and efficiency.

Overview

Samsung Electronics Co Ltd.was profitable and is financially healthy and liquid. The calculated financial strength was strong. Based on the calculation of its intrinsic value, the stock was undervalued on the date of posting of this article and could be a good candidate for a Buy.  

 

CITATION

https://www.samsung.com/us/aboutsamsung/home/

https://www.opensecrets.org/federal-lobbying/industries/summary?cycle=2019&id=B12

https://www.morningstar.com/stocks/xkrx/005930/quote

Research and written by Criselda

 

Aboitiz Power Corporation (AP) Extended Graph Analysis

January 31st, 2020 Posted by Extended Analysis No Comment yet

Company Profile

Aboitiz logo

Aboitiz Power Corporation is an electric utility company and was incorporated in 1998 operating in the Philippines. The company is a publicly listed holding company for the Aboitiz Group’s Investments in power generation, distribution and retail electricity services.

The company owns and manages different generation plants, distribution utilities and retail electricity suppliers in the Philippines.

Aboitiz Power Corporation (AP) Extended Graph Analysis

1. AP CASH FLOWS

AP CASH FLOW

2014 2015 2016 2017 2018 2019
Net cash flow provided by operating activites 23,437,979,000 25,199,597,000 29,887,980,000 30,235,931,000 37,287,900,000 44,514,829,000
Net cash used for investing activities -12,979,595,000 -8,902,646,000 -81,380,348,000 -9,452,925,000 -7,243,119,000 -31,830,364,000
Net cash provided by (used for) financing activities -1,618,932,000 -5,448,755,000 -47,483,228,000 -32,122,699,000 -19,155,753,000 -10,939,485,000
Capital expenditure -15,040,030,000 -15,721,460,000 -28,249,166,000 -16,154,209,000 -8,660,124,000 -7,855,366,000
Free cash flow 8,397,949,000 9,478,137,000 1,638,814,000 14,081,722,000 28,627,776,000 36,659,463,000

Facts

  • The net cash flow provided by operating activities were Php 44.515 billion in the trailing twelve months.
  • Net cash used for investing activities were -Php 31.830 billion in the trailing twelve months.
  • Net cash provided by (used for) financing activities were -Php 10.939 billion in the trailing twelve months.
  • Capital expenditure was -Php 7.855 billion in the trailing twelve months.
  • Free cash flow was Php 36.659 billion in the trailing twelve months.

Explanation

  • Cash provided by operating activities increases year-over-year and has a growth of 90 percent in five years.
  • Net cash used for investing activities were investments in properties, plant and equipment; and purchases of investments.
  • Cash provided by financing activities were dividends payments.
  • Capital expenditure was purchases of property, plant and equipment.
  • Free cash flow was erratic in movement in the last five years.

Interpretation

The company was able to generate cash from operating activities in the last five years. Investment gains, changes in working capital, other working capital and other non-cash items were significant in the operating activities.

 

2. AP BALANCE SHEET

AP BALANCE SHEET

2014 2015 2016 2017 2018 2019
Total cash 40,231,875,000 51,098,269,000 47,094,741,000 35,699,631,000 46,343,041,000 31,478,303,000
Total current asset 56,726,089,000 70,409,021,000 73,649,187,000 67,961,596,000 88,708,607,000 71,129,407,000
Net property, plant and equipment 119,646,640,000 134,810,627,000 192,633,546,000 204,025,303,000 207,110,412,000 210,558,261,000
Total non-current assets 160,034,932,000 172,080,225,000 281,127,048,000 293,515,403,000 300,953,569,000 333,655,738,000
Total assets 216,761,021,000 242,489,246,000 354,776,235,000 361,476,999,000 389,662,176,000 404,785,145,000
Current liabilities 16,885,889,000 22,553,200,000 32,802,506,000 49,312,291,000 46,815,020,000 57,946,012,000
Non-current liabilities 107,913,040,000 122,367,525,000 216,859,310,000 196,768,338,000 215,134,240,000 225,010,464,000
Total liabilities 124,798,929,000 144,920,725,000 249,661,816,000 246,080,629,000 261,949,260,000 282,956,476,000
Stockholders equity 91,962,092,000 144,920,725,000 105,114,419,000 115,396,370,000 127,712,916,000 121,828,669,000
Retained earnings 52,581,755,000 97,568,521,000 52,597,568,000 63,006,308,000 74,427,738,000 77,227,658,000

Facts:

  • Total cash was Php 31 billion in the trailing twelve months.
  • Current assets were Php 71 billion in the trailing twelve months.
  • Net property, plant and equipment was Php 211 billion in the trailing twelve months.
  • Non-current assets were Php 334 billion in the trailing twelve months.
  • Total assets were Php 405 billion in the trailing twelve months.
  • Current liabilities were Php 58 billion in the trailing twelve months.
  • Stockholders equity was Php 122 billion in the trailing twelve months.
  • Retained earnings were Php 77 billion in the trailing twelve months.

Explanation:

  • Total cash was erratic in movement in the last five years and it increased 15 percent from 2014 to 2018.
  • Current assets had grown 56 percent in five years.
  • Net property, plant and equipment increases year-over-year and has grown 73 percent in five years.
  • Net property, plant and equipment represent 53 percent of the total assets.
  • Non-current assets represent 77 percent of total assets.
  • Total assets have grown 80 percent in five years.
  • Current liabilities represent 20 percent of total liabilities.
  • Non-current liabilities represent 82 percent of the total liabilities.
  • Total liabilities represents 70 percent of total liabilities and stockholders equity.
  • Stockholders equity represents 30 percent of the total liabilities and stockholders equity.
  • Retained earnings represents 63 percent of stockholders equity.

Interpretation

The balance sheet was stable. However, the company is utilizing more of creditors money than that of the shareholders investments from the company, in other terms, the creditors have more stakes than the shareholders. Total debt is greater by 75 percent against the stockholders equity.

 

3. INCOME AND MARKET

AP INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Revenue 86,759,386,000 85,173,952,000 89,163,269,000 119,391,303,000 131,572,084,000 126,148,155,000
EBIT 23,093,515,000 25,218,714,000 26,551,002,000 34,397,385,000 36,874,863,000 31,400,758,000
Net Income 16,705,184,000 17,603,797,000 20,002,582,000 20,416,442,000 21,707,603,000 18,490,435,000
EBITDA 31,902,851,000 33,360,244,000 38,715,225,000 45,690,873,000 48,937,537,000 47,343,776,000
Market Capitalization 315,684,000,000 306,854,000,000 306,854,000,000 305,750,000,000 258,267,000,000 251,664,000,000
Intrinsic Value 249,741,775,326 309,067,785,513 363,779,625,016 568,374,432,825 466,764,451,508 796,320,851,627

Facts:

  • Revenue was Php 128 billion in the trailing twelve months.
  • EBIT was Php 31 billion in the trailing twelve months.
  • Net income was Php 18 billion in the trailing twelve months.
  • EBITDA was Php 47 billion in the trailing twelve months.
  • Market capitalization was Php 252 billion in the trailing twelve months.
  • Intrinsic value was Php 796 billion in the trailing twelve months.

Explanation

  • Revenue increases year-over-year and has a growth of 52 percent in five years.
  • EBIT increases year-over-year and has grown 60 percent in five years.
  • Net income increases year-over-year and has grown 30 percent in five years.
  • Net income represents 17 percent of revenue.
  • EBITDA increases year-over-year and has grown 53 percent in five years.
  • Market capitalization is lower by 173 percent against intrinsic value.
  • Intrinsic value was higher by 216 percent against market capitalization.

Interpretation

The company is profitable and has not seen any negative in its bottomline in the last five years. Its bottomline increases year-over-year, the management was able to generate sufficient revenue for the operation of the business.

 

4. AP FINANCIAL RATIOS

AP FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset turnover (average) 0.42 0.37 0.3 0.33 0.35 0.32
Return on assets % 8.14 7.67 6.70 5.70 5.78 4.74
Return on equity % 18.6 18.58 19.74 18.52 17.86 15.00
Debt/Equity 1.02 1.10 1.90 1.54 1.50 1.63
Return on invested Capital % 11.93 11.14 9.66 9.13 9.49 8.46
Interest coverage 4.68 4.47 4.26 3.39 3.38 2.81

Facts:

  • Asset turnover was averaging 0.32 in the trailing twelve months.
  • Return on assets were 4.74 percent in the trailing twelve months.
  • Return on equity was 15 percent in the trailing twelve months.
  • Debt/Equity was 1.63 in the trailing twelve months.
  • Return on invested capital was 8.46 percent in the trailing twelve months.
  • Interest coverage was 2.81 in the trailing twelve months.

Explanation

  • Asset turnover indicates that the company generates 0.32 centavos of sales for every one peso investment in assets.
  • Return on assets indicates that every peso invested in assets generates 4.74 centavos of net income.
  • Return on equity  means that every one Peso of equity, the company generated 15 centavos in profit.
  • Debt-to-equity ratio means for every Peso of the equity its shareholders own the company owes Php1.63.
  • Return on invested capital was 8.46 percent or 8 centavos for every Peso invested in the company.
  • Interest coverage means that the company is making more than enough money to pay its interest obligations.

Interpretation

Financial ratios show that the company is performing acceptably. 

 

5. AP KEY EXECUTIVES

 

Name Title Effective
Emmanuel V. Rubio President, Chief Executive Officer January 1, 2020
Erramon I. Aboitiz President and Chief Operating Officer September 1, 2018
Liza Luv T. Montelibano Chief Financial Officer – Power Generation Group January 2, 2014
Ma. Racquel J. Bustamante First Vice President & CFO – Generation Business Group July 1, 2018
Ma. Chona Y. Tiu First Vice President and Chief Financial Officer – Power Distribution Group January 2, 2014
Manuel Alberto R. Colayco Corporate Secretary March 1, 2018
Joseph Trillana T. Gonzales General Counsel of AboitizPower January 1, 2015

Facts:

  • Emmanuel V. Rubio –  President, CEO
  • Erramon I. Aboitiz – President and COO
  • Liza Luv T. Montelibano – CFO Power Generation Group
  • Ma. Raquel J. Bustamante – First VP and CFO – Generation Business Group
  • Ma. Chona T. Tiu – First VP and CFO – Power Distribution Group
  • Manuel Alberto R. Colayco – Corporate Secretary
  • Joseph Trillana T. Gonzales – General Counsel of Aboitiz Power

DIRECTORS ALLOWANCE

Aboitiz Power Corp has not disclosed any compensation of the key executives, however, the Director’s/Committee member and Chairman of the Board per meeting were available as follows:

Directors/Committee Members Chairman of the Board
(In Php) From To From To
Monthly Allowance per Meeting 120,000 150,000 180,000 200,000

 

Directors/Committee Members Chairman of the Board/ Committee
(In Php) From To From To
Board Meeting 100,000 150,000 150,000 200,000
Committee Meeting 80,000 100,000 100,000 130,000

 

6. AP LOBBYING AND CONTRIBUTIONS

THERE WAS NO LOBBYING AND CONTRIBUTIONS FOUND FOR ABOITIZ POWER CORP IN OPENSECRET.ORG AND OTHER SOURCES.

OpenSecret.org

 

7. AP FINANCIAL STRENGTH

AP FINANCIAL STRENGTH

DATA

Working capital 41,894,000,000
Total assets 389,662,176,000
Sales 126,148,155,000
EBIT 31,400,758,000
Market value of equity 251,664,000,000
Book value of total liabilities 261,949,260,000
Retained earnings 74,427,738,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.11 1.20 0.13
B – Retained Earnings / Total Assets 0.19 1.40 0.27
C – EBIT / Total Assets 0.08 3.30 0.27
D – Market Value of Equity / Book Value of Total Liabilities 0.96 0.60 0.58
E – Sales / Total Assets 0.32 1.0 0.32
Z-Score 1.56

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation:

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

The Z-Score of Aboitiz Power Corp was 1.56. Dr. Altman’s grading scale of 1 to 1.8 indicates that the company will declare bankruptcy in the future. The main factors of this statistical measurement are profitability, liquidity, leverage and efficiency. Total liabilities represents two-thirds of the total liabilities and equity.

OVERVIEW

The balance sheet is stable. The company is utilizing more of creditors money in its business operation than that of the investors money. The earnings per share is Php 2.51 which is an acceptable ratio. Moreover, based on the calculation of its intrinsic value the stock of AP is undervalued.

CITATION

https://aboitizpower.com/

https://www.morningstar.com/stocks/xphs/ap/quote

Researched and written by Criselda

 

BDO Unibank Inc (BDOUF) Extended Graph Analysis

January 23rd, 2020 Posted by Extended Analysis No Comment yet

Company Profile

BDO

BDO Unibank Inc (BDOUF) is a Philippine Banking Company  and, the largest in the Philippines in terms of assets, loans and deposits. Moreover, the bank is the 15th largest in SouthEast Asia. It was founded on January 2, 1968 in Manila and headquartered in Makati. Its key areas are the Philippines, Asia, Europe, Middle East and North America. BDO Unibank is registered under the Philippine Stock Exchange (PSE) with ticker symbol BDOUF.

As a full service universal bank, it caters banking services including foreign exchange, brokerage, trust and investment and credit cards, corporate cash management and remittances. 

 

BDO Unibank Inc (BDOUF) Extended Graph Analysis

1. BDOUF CASH FLOW

BDOUF CASH FLOWS

2014 2015 2016 2017 2018 2019
Net cash flow provided by operating activities -33,605,000,000 -12,928,000,000 37,249,000,000 -2,819,000,000 90,312,000,000 23,730,000,000
Net cash used for investing activities -490,000,000 -10,211,000,000 -30,318,000,000 -67,731,000,000 -56,740,000,000 -63,597,000,000
Net cash provided by (used for) financing activities 5,220,000,000 -10,837,000,000 -1,545,000,000 83,983,000,000 2,399,000,000 19,726,000,000
Capital expenditure -5,970,000,000 -6,963,000,000 -5,537,000,000 -6,158,000,000 -8,135,000,000 -4,060,000,000
Free cash flow -39,575,000,000 -19,891,000,000 31,712,000,000 -8,977,000,000 82,177,000,000 19,670,000,000

Facts:

  • Net cash flow provided by operating activities is Php 23.730 billion.
  • Net cash used for investing activities is -Php 63.597 billion.
  • Net cash provided by (used for) financing activities is Php 19.726 billion.
  • Capital expenditure is -Php 4.060 billion.
  • Free cash flow is Php 19.670 billion.

Explanation

  • Cash from operation increased by more than 3,000 percent at Php 87 billion in 2018, however showed a decreased of 74 percent at Php 67 billion in the trailing twelve months.
  • Cash used for investing activities were investment in property, plant and equipment; and purchases of investments.
  • Cash provided by (used for) financing activities were debt issued and repayments plus dividends payments.
  • Capital expenditure is investment in property, plant and equipment.
  • Free cash flow had a growth of 150 percent in five years.

Interpretation

The net change in cash was Php 36 billion in 2018 and -Php 20 billion in the trailing twelve months. In other words, cash at the beginning was higher than the cash at the end in the trailing twelve months.

2. BDOUF BALANCE SHEET

BDOUF BALANCE SHEET

2014 2015 2016 2017 2018 2019
Total cash 41,342,000,000 42,729,000,000 40,909,000,000 45,006,000,000 53,749,000,000 53,749,000,000
Total assets 179,669,000,000 199,613,000,000 217,535,000,000 298,340,000,000 328,149,000,000 364,036,000,000
Total liabilities 633,000,000 623,000,000 743,000,000 852,000,000 777,000,000 1,684,000,000
Equity 179,036,000,000 198,990,000,000 216,792,000,000 297,488,000,000 327,372,000,000 362,352,000,000
Retained earnings 70,242,000,000 88,118,000,000 109,216,000,000 133,529,000,000 156,327,000,000 156,327,000,000

Facts:

  • Total cash was Php 54 billion in 2018 and in 2019 trailing twelve months respectively.
  • Total assets were Php 328 and Php 364 billion in 2018 and the trailing twelve months respectively.
  • Total liabilities were Php 777 million and Php 1.684 billion in 2018 and the trailing twelve months respectively.
  • Equity was Php 327 and Php 362 billion in 2018 and the trailing twelve months respectively.
  • Retained earnings were Php 156 billion in 2018 and the trailing twelve months.

Explanation

  • Total cash represents 15 percent of the total assets in 2018 and 2019 trailing twelve months.
  • Total assets have grown 103 percent in 5 years.
  • Total liabilities increased by 117 percent from 2018 to the trailing twelve months.
  • Total liabilities is less than half percent or 0.46 percent of the total liabilities and shareholders equity.
  • Equity has grown by 102 percent in five years.
  • Equity is 99.5 percent of the total liabilities and shareholders equity.
  • Retained earnings have grown 123 percent in five years.
  • Retained earnings represents 43 percent of equity in the trailing twelve months.

Interpretation

BDO has a strong balance sheet. The company is using investor’s investment more than creditors in its business operation. The shareholders have more stake in the business.

3. BDOUF INCOME AND MARKET

BDOUF INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Revenue 76,498,000,000 84,414,000,000 101,087,000,000 116,087,000,000 133,102,000,000 158,433,000,000
EBIT 31,576,000,000 33,134,000,000 36,704,000,000 43,769,000,000 49,417,000,000 60,639,000,000
Net Income 22,805,000,000 25,016,000,000 26,090,000,000 28,070,000,000 32,708,000,000 43,297,000,000
Market Capitalization 8,780,000,000 8,157,000,000 8,249,000,000 14,373,000,000 10,890,000,000 13,627,000,000
Intrinsic Value 29,973,663,795 31,891,119,154 32,652,745,225 48,480,991,154 53,494,073,808 47,668,058,944

Facts:

  • The total revenue was Php 158 billion in the trailing twelve months.
  • EBIT was Php 61 billion in the trailing twelve months.
  • Net income was Php 43 billion in the trailing twelve months.
  • The market capitalization was Php 13.6 billion in the trailing twelve months.
  • The intrinsic value was Php 47.668 billion in the trailing twelve months.

Explanation

  • Revenue has grown 107 percent in five years.
  • Revenue growth year-over-year is increasing from 2014 to the trailing twelve months.
  • EBIT has grown 92 percent in five years.
  • EBIT represents 38 percent of the revenue in the trailing twelve months.
  • Net income has grown 90 percent in five years.
  • Net income represents 27 percent of the total revenue in the trailing twelve months.
  • Net income year-over-year growth was 16.52 percent in 2018.
  • Market capitalization had increased 55 percent from 2014 to the trailing twelve months 2019.The value was increasing year-over-year.
  • The intrinsic value has grown 59 percent in five years and it is increasing year-over-year from 2014 to 2018.
  • Intrinsic value was greater by 250 percent against market capitalization in the trailing twelve months.

Interpretation

The company is profitable. The record shows that from revenue down to the bottomline, the management is efficient in generating sufficient income for its business operation.There was no record of negative earnings in the last five years.

4. BDOUF FINANCIAL RATIOS

BDOUF FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset turnover (average) 0.04 0.04 0.05 0.05 0.05 0.05
Return on assets % 1.27 1.27 1.18 1.11 1.14 1.43
Return on equity % 13.52 13.42 12.70 11.00 10.53 12.86
Debt/Equity 0.63 0.56 0.52 0.48 0.48 0.50

Facts:

  • Asset turnover was averaging 0.05 in the trailing twelve months.
  • Return on assets was 1.43 percent in the trailing twelve months.
  • Return on equity was 12.86 percent in the trailing twelve months.
  • Debt/Equity was 0.50 in the trailing twelve months.

Explanation

  • Asset turnover indicates that the company is making 50 centavos of sales for every one Peso invested in assets.
  • Return on assets indicates that the company produced Php 1.43 of net income utilizing its investment in assets.
  • Return on equity means that for every Peso in common shareholders equity, the company generated 13 centavos of profit.
  • Debt to equity indicates that the assets of the company are funded 2 is to 1 by shareholders to creditors. In other terms shareholders own 66.6 centavos for every Peso of company assets while creditors own 33.3 centavos for every Peso.

Interpretation

The financial ratios of the company shows that the management is performing well in the operation of its business.

5. BDOUF KEY EXECUTIVES

Name Title
Teresita T. Sy-Coson President and CEO
Edmundo L. Tan Corporate Secretary
Sabino E. Acut Jr. Assistant Corporate Secretary
Albin C. Go Head – Legal
Daimacio D. Martin Treasurer
Marilyn K. Go Deputy Treasurer
Estrelita V. Ong Chief Internal Auditor
Federico P. Tancongco Chief Compliance Officer
Evelyn L. Villanueva Chief Risk Officer

Facts:

  • Teresita T. Sy-Coson – President and Chief Executive Officer
  • Edmundo L. Tan – Corporate Secretary
  • Sabino E. Acut Jr. – Assistant Corporate Secretary
  • Albin C. Go – Head – Legal
  • Damacio D. Martin – Treasurer
  • Marilyn K. Go – Deputy Treasurer
  • Estrelita V. Ong – Chief Internal Auditor
  • Federico P. Tancongco – Chief Compliance Officer
  • Evelyn L. Villanueva – Chief Risk Officer

Explanation

Hence, the operation of the business is considered productive in the last five years the key executive team has the capabilities and talented in managing its business operations very well. 

6. LOBBYING AND CONTRIBUTIONS

NO POLITICIANS OR LOBBYIST FOUND IN OPENSECRET.ORG AND IN OTHER SOURCES

 

7. BDOUF FINANCIAL STRENGTH

BDOUF FINANCIAL STRENGTH

DATA

Working capital 0
Total assets 364,036,000,000
Sales 158,433,000,000
EBIT 60,639,000,000
Market value of equity 13,627,000,000
Book value of total liabilities 1,684,000,000
Retained earnings 7,031,035,092

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.00 1.20 0.00
B – Retained Earnings / Total Assets 0.02 1.40 0.03
C – EBIT / Total Assets 0.17 3.30 0.55
D – Market Value of Equity / Book Value of Total Liabilities 8.09 0.60 4.86
E – Sales / Total Assets 0.44 1.0 0.44
Z-Score     5.87

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

Explanation:

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

BDOUF has a Z-Score of 5.87. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy in near future. In other terms, the company is not close to insolvency. The main factors of this statistical measurement are profitability, liquidity, leverage and efficiency.

OVERVIEW

The financials show that the balance sheet is stable and strong.The company is profitable and the management is efficient in producing sufficient revenue for the operation of the business. Moreover, the earnings per share growth was erratic in movement from 2010 to the current date 2019, however, its year-over-year growth was 43.16 percent in the trailing twelve months. 

Overall, the stock of BDO Unibank Inc was currently undervalued from the day this article was published, and the stock is a good opportunity for a Buy.

 

CITATION

https://www.bdo.com.ph/sites/default/files/pdf/BDO%20Unibank%202018%20Annual%20Report.pdf

https://www.bdo.com.ph/company-disclosures/sec-filings

Researched and written by Criselda

 

COL Financial Group Inc (COL) Extended Graph Analysis

December 19th, 2019 Posted by Extended Analysis No Comment yet

About the Company

COL Financial

COL Financial Group Inc (COL) is an online stock trading services, formerly CitisecOnline.com Inc. Incorporated on August 16, 1999 and the company’s new name was approved by the SEC on February 21, 2012.

COL is a publicly listed company in the Philippine Stock Exchange (PSE). On January 2001 the company launched its proprietary online trading platform, and became  the leading online financial services provider in the Philippines. 

The company established its wholly owned foreign subsidiary COL Securities (HK) Limited (the “HK Subsidiary” or “COLHK”) on June 20, 2001 to provide investors with online access to HK stock market. COLHK was a broker with Interactive Brokers (IB).

 

1. COL CASH FLOWS

COL CASH FLOW

2014 2015 2016 2017 2018 2019
Net cash provided by operating activities 1,724,035,060 2,116,349,463 1,204,000,608 3,342,946,006 -753,862,651 449,925,197
Net cash used for investing activities -12,046,372 -26,112,260 -235,496,719 -267,019,663 -31,284,294 -47,052,277
Net cash provided by (used for) financing activities -275,790,000 -236,825,000 -236,500,000 -285,600,000 -333,200,000 -382,100,000
Capital expenditure -12,102,102 -26,113,336 -35,503,862 -63,977,777 -31,284,294 -47,060,759
Free cash flow 1,711,925,958 2,090,236,127 1,168,496,746 3,278,968,229 -785,146,945 398,864,438
Working Capital 1,200,000,000 1,228,000,000 1,114,000,000 983,000,000 1,150,000,000 1,150,000,000

Facts:

  • Net cash from operation was Php 449.9 million in 2019.
  • Net cash used for investing activities were Php -47 million in 2019.
  • Net cash provided by (used for) financing activities were Php -382 million in 2019.
  • Capital expenditures were Php -47 million in 2019.
  • Free cash flow was Php 398.9 million in 2019.
  • Working capital was Php 1.150 billion in 2019.

Explanation:

  • Cash from operation had an increase of 160 percent from 2018 to the trailing twelve months.. 
  • In 2018 cash from operation was negative due to huge amount of changes in working capital.
  • Net cash used for investing activities were investment in property, plant and equipment and purchases of intangibles.
  • Net cash provided by financing activities were dividend payments.
  • Capital expenditures were investment in property, plant and equipment; and purchases of intangibles.
  • Free cash flow was erratic in movement and has a negative growth of 77 percent in five years. 
  • The working capital indicates that COL is capable of meeting current obligations using its current assets.

Interpretation

The company has managed to generate cash from its principal business operations from 2014 except in 2018 where it suffered a negative result due to significant disbursements.

 

2. COL BALANCE SHEET

COL BALANCE SHEET

2014 2015 2016 2017 2018 2019
Cash and cash equivalents 4,649,563,456 6,495,273,522 7,227,706,547 10,017,107,305 9,526,808,545 9,526,808,545
Current assets 6,256,513,502 7,837,202,198 8,568,619,424 11,315,962,825 10,530,872,434 10,530,872,434
Net property, plant and equipment 35,825,494 44,268,412 60,667,539 85,996,168 76,030,681 76,030,681
Non-current assets 104,891,220 115,628,820 336,122,058 564,874,523 587,738,648 587,738,648
Total assets 6,361,404,722 7,952,831,018 8,904,741,482 11,880,837,348 11,118,611,082 11,118,611,082
Current liabilities 5,056,759,000 6,609,562,286 7,454,399,737 10,332,663,716 9,380,783,286 9,380,783,286
Total non-current liabilities 28,192,690 26,277,714 28,826,298 43,549,010 44,257,971 44,257,971
Total liabilities 5,084,951,690 6,635,840,000 7,481,226,298 10,376,212,726 9,425,041,257 9,425,041,257
Stockholders’ equity 1,276,453,032 1,316,991,018 1,423,515,447 1,504,624,622 1,693,569,825 1,693,569,825

Facts:

  • Cash and cash equivalents were Php 9.527 billion in 2018..
  • Current assets were Php 10.531 billion in 2018.
  • Net property, plant and equipment was Php 76 million.in 2018.
  • Non-current assets were Php 588 million in 2018.
  • Total assets were Php 11.119 billion in 2018.
  • Current liabilities were Php 9.381 billion in 2018.
  • Non-current liabilities  were Php 44 million in 2018.
  • Total liabilities were Php 9.425 billion in 2018.
  • Stockholders’ equity was Php 1.694 billion in 2018.

Explanation

  • Cash and cash equivalent increases year-over-year and it has a growth of 105 percent in five years.
  • Cash and cash equivalents represents 90 percent of total current assets.
  • Current assets has a growth of 68 percent in five years. The decrease was 7 percent from 2017 to 2018.
  • Current assets represents 90 percent of the total assets.
  • Net property, plant and equipment had a growth of 112 percent in five years.
  • Net property, plant and equipment represents 13 percent of total non-current assets.
  • Non-current assets increases year-over-year and has a growth of 460 percent in five years.
  • Non-current assets represents 5 percent of total assets.
  • Total assets has a growth of 75 percent in five years.
  • Current liabilities represents 99.53 percent of the total liabilities.
  • Accounts payable has a significant amount which represents 99 percent of current liabilities.
  • Non-current liabilities represents 0.47 percent of total liabilities.
  • Total liabilities represents 85 percent of the total liabilities and stockholders equity.
  • Stockholders’ equity represents 15 percent of the total liabilities and stockholders’ equity.

Interpretation

Col Financial has a huge amount of accounts payable which represents 98 percent of the total liabilities. These accounts payables are actually trade payables which comprise of the following:

Php
Customers* 8,989,453,360
Clearing house 265,379,830
Dividends Payable 22,160,
Total 9,254,855,150

* Payable to customers are money balances amounting to Php 8,989,453,360 are noninterest-bearing and has no specific credit terms.

 

3. COL INCOME AND MARKET

COL INCOME AND MARKET

2014 2015 2016 2017 2018 TTM
Sales 711,550,710 737,037,592 833,719,568 969,394,284 1,154,701,557 1,046,191,248
EBIT 342,558,453 368,256,787 439,386,101 532,973,159 694,077,186 578,881,301
Net Income 262,267,000 262,693,342 328,482,350 378,721,215 512,554,189 521,797,076
EBITDA 357,789,777 380,792,153 458,127,308 535,175,045 755,094,045 643,886,804
Market Capitalization 7,232,000,000 7,125,000,000 7,664,000,000 7,378,000,000 7,730,000,000 8,663,200,000
Intrinsic Value 9,641,649,565 11,481,860,911 23,136,546,325 19,391,575,990 31,645,596,740 33,050,526,265

Facts:

  • Sales were Php 1 billion in 2019.
  • EBIT was Php 579 million in 2019.
  • Net income was Php 522 million in 2019.
  • EBITDA was Php 644 million in 2019.
  • Market capitalization was Php 8.663 billion in 2019.
  • Intrinsic value was Php 33 billion in 2019.

Explanation:

  • Sales increases year-over-year and has a growth of 47 percent in five years.
  • EBIT increases year-over-year and has a growth of 69 percent in five years.
  • Net income has a growth of 99 percent in five years.
  • EBITDA has grown 80 percent in five years.
  • Market  capitalization has grown 20 percent in five years.
  • Intrinsic value grows 242 percent in five years. 
  • Intrinsic value is greater by 282 percent against market capitalization.

Interpretation

The management has the ability to generate sufficient revenue for the operation of the business. The company has not seen any negative bottomline and it increases year-over-year in the last five years

 

4. COL FINANCIAL RATIOS

COL FINANCIAL RATIOS

2014 2015 2016 2017 2018 TTM
Asset Turnover (average) 0.13 0.10 0.10 0.09 0.10 0.10
Return on Asset (ROA) % 4.70 3.67 3.90 3.64 4.46 4.89
Return on Equity (ROE) % 20.33 20.26 23.97 25.87 32.05 30.79
Financial Leverage (average) 4.98 6.04 6.26 7.90 6.57 6.18
Return on Invested Capital % 20.42 20.33 24.04 25.94 32.16 30.79
Interest Coverage 217.58 279.99 334.12 347.65 293.74 293.74
Earnings per Share PHP 0.55 0.55 0.69 0.80 1.08 1.10

Facts:

  • Asset Turnover was averaging 0.10 in the trailing twelve months.
  • Return on assets was 4.89 percent in the trailing twelve months.
  • Return on equity was 30.79 percent in the trailing twelve months.
  • Financial leverage was averaging 6.18 in the trailing twelve months.
  • Return on invested capital was 30.79 percent in the trailing twelve months.
  • Interest coverage was 293.74 ratio in the trailing twelve months.
  • Earnings per share was 1.10 in the trailing twelve months.

Explanation:

  • Asset turnover means that every Peso in assets, the company generated 0.10 centavos of sales.
  • Return on assets indicates that the company generated 4.89 centavos of net income for every Peso invested in assets.
  • Return on equity means that for every Peso invested in equity, it generated 30.79 or 31 centavos of net income.
  • Financial leverage means that  every Peso in equity COL had Php 6.18 in total assets. The Php 5.18 was borrowed. This means that the company is at risk. The table above shows that the ratio was high from 2014 to the trailing twelve months.
  • Return on invested capital of 30.79 percent is the return that the company generates over its invested capital which is the long-term debt and the amount of common and preferred shares.
  • Interest coverage means the company has the ability to make more than enough cash to meet interest payments.
  • Earnings per share  means that each shareholder will receive Php 0.10 of profit for each share of stock invested.

Interpretation

Financial ratios indicates the performance of the company. Financial leverage shows a concern, hence the ratio was high which indicate a risk in the operation in the last five years.

 

5. COL KEY EXECUTIVES

 

Position Name
President & CEO Conrado F. Bate
Treasurer and CFO/Chief Audit Executive/Chief Risk Officer Catherine L. Ong
Corporate Secretary/Compliance Officer Sharon T. Lim
Assistant Corporate Secretary Juan G. Barredo
Assistant Corporate Secretary Stephanie Faye B. Reyes
Vice President and Chief Technology Officer Nikos J. Bautista
Vice President and Financial Controller Lorena E. Velarde
Vice President and Head of Research Department April Lynn C. Lee-Tan
AVP – Head of Operations Department Melissa O. Ng
AVP – Head of Premium Business Group Edmund Daniel P. Martinez
AVP – Software Development Gabriel Jose E. Mendiola
AVP – Customer Support Joyce G. Chan

Explanation

The compensation of the key executives were not disclosed in the financial statement of COL Financial Group Inc.

 

6. COL LOBBYING AND CONTRIBUTIONS

 

There is no lobbying and contributions found for COL Financial Group Inc.

 

7. COL FINANCIAL STRENGTH

COL FINANCIAL STRENGTH

DATA

PHP
Working capital 1,150,000,000
Total assets 11,118,611,082
Sales 1,046,191,248
EBIT 578,881,301
Market value of equity 8,663,200,000
Book value of total liabilities 9,425,041,257
Retained earnings 881,772,457

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.10 1.20 0.12
B – Retained Earnings / Total Assets 0.08 1.40 0.11
C – EBIT / Total Assets 0.05 3.30 0.17
D – Market Value of Equity / Book Value of Total Liabilities 0.92 0.60 0.55
E – Sales / Total Assets 0.09 1.0 0.09
Z-Score 1.05

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation

Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

The calculated Z-Score of COL Financial was 1.05, not an impressive score. According to Dr. Altman, a grading scale of 0 to 1.8 tells us that the company will declare bankruptcy in the future. Please take note that the measurement used today is the current financial data, the result of this measurement will change in the succeeding years depending on the movement of the financials in the succeeding period. It is necessary to update the data to get the current score.

Moreover, there are four main categories in the calculation of Z-Score namely, the profitability or the return on investment, liquidity, leverage and the operating or efficiency. Hence this calculation relies on different metrics this is a significant measure in determining the financial strength of the company.

 

CITATION

https://edge.pse.com.ph/companyPage/stockData.do?cmpy_id=601

https://edge.pse.com.ph/companyPage/directors_and_management_list.do?cmpy_id=601

https://edge.pse.com.ph/companyPage/financial_reports_view.do?cmpy_id=601

Researched and written by Criselda

Twitter: criseldarome

 

International Container Terminal Services Inc (ICTSI) Extended Graph Analysis

December 11th, 2019 Posted by Extended Analysis No Comment yet

About the Company

ICTSI

International Container Terminal Services Inc (ICTSI) is a publicly listed corporation at the Philippine Stock Exchange. ICTSI is a global port operator firm and was founded on December 24, 1987 by Enrique K. Razon a Filipino businessman. Forbes magazine has named Enrique Razon “The Third Richest Man in the Philippines”  in February 2015, whose net worth was USD 5.1 billion in 2019. His family have been involved in the business of marine cargo handling in the Philippines for three generations.

ICTSI is headquartered and established at the Port of Manila, Philippines. The company has 32 terminals in eighteen countries. The major terminals are in the Philippines, Asia Pacific, Europe, Middle East and Africa;and Latin America.

Services offered by the company were container port establishment, port management, cargo handling and rail freight.

International Container Terminal Services Inc (ICTSI) Extended Graph Analysis

 

1. ICTSI CASH FLOWS

ICTSI CASH FLOW

2014 2015 2016 2017 2018 2019
Net cash provided by operating activities 387,821,210 407,736,739 466,948,218 564,011,621 642,403,883 695,452,883
Net cash used for investing activities -340,777,017 -547,611,023 -468,466,048 -432,380,540 -327,899,907 -511,297,907
Net cash provided by (used for) financing activities -94,138,066 297,079,001 -21,678,513 -184,772,107 -132,554,225 -282,539,225
Capital expenditure -297,082,245 -405,428,152 -393,684,881 -323,105,285 -289,999,212 -224,000,212
Free cash flow 100,738,965 2,308,587 73,263,337 240,906,336 352,404,671 471,452,671
Working Capital 76,000,000 225,000,000 79,000,000 100,000,000 235,000,000 235,000,000

Facts:

  • Net cash provided by operating activities were $695,452,883 in 2019.
  • Cash used for investing activities were -$511,297,907 in 2019.
  • Net cash provided by (used for) financing activities were -$282,539,225 in 2019.
  • Capital expenditures were -$224 million in 2019.
  • Free cash flow was $471,452,671 in 2019.
  • Working capital was $235 million in 2019.

Explanation:

 

  • Cash from operating activities were net income, and depreciation and amortization which represents 54 and 29 percent respectively.
  • Cash used for investing activities were purchases of property, plant and equipment; purchases of intangibles and acquisitions.
  • Net cash provided by (used for) financing activities were debt issued, debt repayments, common stock issued, and dividends paid.
  • Capital expenditures were investment in property, plant and equipment, and purchases of intangibles.
  • Free cash flow increases year-over-year and has a growth of 368 percent in five years.
  • Working capital was erratic in movement howbeit, it has grown 209 percent in five years.

 

Interpretation

The management is efficient in providing cash from operations and it’s growing year after year in the last five years. There was free cash flow left after deducting capital expenditures and is growing due to increases in net income in the last five years.

 

2. ICTSI BALANCE SHEET

ICTSI BALANCE SHEET

2014 2015 2016 2017 2018
Total cash 194,297,656 354,481,813 325,058,592 279,427,071 447,079,325
Current assets 359,623,060 513,717,457 525,009,678 500,981,120 673,439,308
Net property, plant and equipment 934,435,672 1,148,856,114 1,381,483,081 1,456,191,640 1,378,048,546
Non-current assets 3,041,147,322 3,327,714,758 3,657,116,736 3,869,705,491 4,029,492,959
Total assets 3,400,770,382 3,841,432,215 4,182,126,414 4,370,686,611 4,702,932,267
Short-term debt 72,253,157 56,492,307 55,084,088 83,336,490 86,566,738
Current liabilities 283,545,006 288,751,239 445,843,331 401,319,650 438,712,427
Long-term debt 998,193,586 1,026,578,274 1,326,280,115 1,410,268,488 1,220,486,951
Total non-current liabilities 1,801,183,251 1,878,237,857 2,111,886,295 2,261,437,016 2,200,523,912
Total liabilities 2,084,728,257 2,166,989,096 2,557,729,626 2,662,756,666 2,639,236,339
Stockholders’ equity 1,316,042,125 1,674,443,119 1,624,396,788 1,707,929,945 2,063,695,928

Facts:

  • Total cash was $447 million in 2018.
  • Current assets were $673.4 million in 2019.
  • Net property, plant and equipment was $1.378 billion in 2018.
  • Non-current assets were $4 billion in 2018.
  • Total assets were $4.7 billion in 2018.
  • Short-term debt was $86.567 million in 2018.
  • Current liabilities were $439 million in 2018.
  • Long-term debt was $1.220 billion in 2018.
  • Non-current liabilities were $2.2 billion in 2018.
  • Total liabilities were $2.639 billion in 2018.
  • Stockholders’ equity was $2.064 billion in 2018.

Explanation

  • Total cash represents 66 percent of current assets.
  • Current assets represents 14 percent of the total assets.
  • Net property, plant and equipment represents 34 percent of non-current assets.
  • Non-current assets represents 86 percent of total assets.
  • Total assets grew 38 percent in five years.
  • Short-term debt represents 20 percent of current liabilities.
  • Current liabilities represents 17 percent of total liabilities.
  • Long-term debt represents 55 percent of total non-current liabilities. 
  • Total non-current liabilities represents 83 percent of total liabilities.
  • Total liabilities represents 56 percent of total liabilities and stockholders equity.
  • Stockholders equity represents 44 percent of the total liabilities and equity.

Interpretation

The balance sheet is stable, assets increases year-over-year in the last five years. The company showed its capabilities in meeting its current obligations all through its five years of operations. The company is funding its operations with profits. 

 

3. ICTSI INCOME AND MARKET

ICTSI INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Sales 1,167,326,865 1,167,403,419 1,184,341,553 1,350,049,061 1,490,584,208 1,626,752,208
EBIT 320,520,972 321,659,863 375,018,622 405,152,010 446,190,942 516,195,942
Net Income 181,988,167 58,545,218 180,015,587 182,141,250 221,493,804 263,462,804
EBITDA 464,002,477 344,602,306 513,971,780 555,247,790 643,421,448 722,199,448
Market Capitalization 5,229,000,000 3,032,000,000 2,946,000,000 4,305,000,000 3,828,000,000 4,871,000,000
Intrinsic Value 1,556,718,227 927,140,532 1,746,651,264 3,952,136,583 9,129,584,658 21,895,889,889

Facts:

  • Sales were $1.627 billion in 2019.
  • EBIT was $516 million in 2019.
  • Net income was $263 million in 2019.
  • EBITDA was $722 million in 2019.
  • Market capitalization was $4.871 billion in 2019.YTD.
  • Intrinsic value was $21.896 billion in 2019.

Explanation:

  • Sales increased 9 percent from 2018 to 2019 TTM and was averaging $1.3 billion in five years..
  • EBIT represents 32 percent of Sales in 2019.
  • Net income represents 16 percent of Sales in 2019 and has a growth of 45 percent in five years.
  • EBITDA represents 44 percent of Sales.
  • Market capitalization grew 27 percent from 2018 to 2019 YTD.
  • Market capitalization was erratic in movement in the last five years.
  • Intrinsic value grew 140 percent from 2018 to 2019.
  • Intrinsic value is greater by 350 percent against market capitalization.

Interpretation

ICTSI was profitable,its bottomline increases year-over-year from 2015 to 2019. The management had generated sufficient revenue for its business operation from 2014 to 2019.

 

4. ICTSI FINANCIAL RATIOS

ICTSI FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset Turnover (average) 0.36 0.32 0.30 0.32 0.33 0.32
Return on Asset (ROA) % 4.71 0.60 3.33 3.29 4.88 5.27
Return on Equity (ROE) % 11.90 1.44 8.11 8.44 11.75 14.72
Financial Leverage (average) 2.58 2.29 2.57 2.56 2.28 3.55
Return on Invested Capital % 9.27 3.15 6.86 7.05 9.19 9.11
Interest Coverage 3.53 2.21 3.35 2.86 3.22 3.64
Earnings per Share USD 0.07 0.01 0.07 0.07 0.07 0.10

Facts:

  • Asset turnover was averaging 0.32 in 2019.
  • Return on assets were 5.27 percent in 2019.
  • Return on equity was 14.72 percent in 2019.
  • Financial leverage was averaging 3.55 in 2019.
  • Return on invested capital was 9.11 percent in 2019.
  • Interest coverage was 3.64 in 2019.
  • Earnings per share was $0.10 in 2019.

Explanation:

  • Asset turnover indicates that the company generates 32 cents of sales for every one dollar invested in assets.
  • Return on assets ratio indicates that the company generated 5.27 cents of net income for every dollar invested in assets.
  • Return on equity indicates that ICTSI generated 14.72 cents of net earnings for every dollar of shareholders equity.
  • Financial leverage ratio indicates that for every dollar in equity ICTSI has $3.55 in total assets. The other $2.55 was borrowed. The company is not considered a highly leveraged. The formula used in this ratio was total assets and not total debt against equity. 
  • Return on invested capital indicates that 9.11 percent is the return that ICTSI makes over its invested capital. Invested capital is the total long-term debt plus equity.
  • Interest coverage tells us that the company is making more than enough for current interest rates which is 3.64 times over.
  • Earnings per share indicates that $0.10 is the amount that the company will distribute to its shareholders for each share of stock.

Interpretation

The financial ratios of ICTSI tells us that the operation of the business is managed efficiently and the company is profitable.

 

5. ICTSI KEY EXECUTIVES

LIST OF EXECUTIVES
NAME TITLE
Enrique K. Razon Jr. Chairman & President
Rafael D. Consing Jr. SVP/CFO/Compliance Officer
Christian Martin Razon Gonzalez SVP/Head Global Corporate
Andrew James Dawes SVP/Head Asia Pacific
Anders Kjeldsen SVP/Head Latin America
Hans-Ole Madsen SVP/Head Europe, Middle East and Africa
Jose Joel M Sebastian SVP, Finance
Brian Mark Hibbert VP/Chief Information Officer
Humberto Godfried Wieske SVP, Head of Global Commercial
Gigi Iluminada T. Miguel VP/Treasurer
Vivien F. Minana VP/Senior Administration Officer
Caroline C. Causon VP/Head Financial Planning and Budgeting
Michael Robin Cruickshanks VP/ Head Global Corporate HR
Johan Swart VP/Head Global Engineering Equipment Maintenance
Tricianne M. Zingapan VP/Head Global Corporate Audit and Compliance
Sandy A. Alipio VP/Bus Process/Chief Risk Officer
Arthur R. Tabuena Director Treasury/Head HR
Rafael T. Durian Secretary
Benjamin M Gorospe III Assistant Secretary

Explanation:

The compensation of the above executives are not revealed in the companies financial statements.

 

6. ICTSI LOBBYING AND CONTRIBUTIONS

ICTSI LOBBYING AND CONTRIBUTIONS

LOBBYING AND CONTRIBUTIONS

Period USD
2017 20,000
2016 20,000
2015 50,000

Facts:

  • Lobbying and contributions were $20,000 in 2017.
  • Lobbying and contributions were $20,000 in 2016.
  • Lobbying and contributions were $50,000 in 2015.

Explanation

  • Lobbying and contributions represents 0.01 percent of net income in 2017.
  • Lobbying and contributions represents 0.01 percent of net income in 2016.
  • Lobbying and contributions represents 0.09 percent of net income in 2015.

Interpretation 

The lobbying and contributions incurred by the company is very minimal against its net income from 2015 to 2017. There was no lobbying in 2018.

 

7. ICTSI FINANCIAL STRENGTH

ICTSI FINANCIAL STRENGTH

DATA

USD
Working capital 235,000,000
Total assets 4,702,932,267
Sales 1,626,752,208
EBIT 516,195,942
Market value of equity 4,867,000,000
Book value of total liabilities 2,639,236,339
Retained earnings 882,814,174

CALCULATIONS

Ratio Score Result
A – Working Capital / Total Assets 0.05 1.20 0.06
B – Retained Earnings / Total Assets 0.19 1.40 0.26
C – EBIT / Total Assets 0.11 3.30 0.36
D – Market Value of Equity / Book Value of Total Liabilities 1.84 0.60 1.11
E – Sales / Total Assets 0.35 1.0 0.35
Z-Score     2.14

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation

Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

ICTSI had a calculated Z-Score of 2.14. According to Dr. Altman, a grading scale of 1.8 to 3.0 indicates the company is likely to declare bankruptcy. In other words, the company might be might be having difficulty with its finances. Although, financial statement tells us that the company is profitable and liquid, however, performing Dr. Altman’s approach in determining the financial strength of the company the result is not favorable hence, it relies on a number of different metrics.

There are four main categories in the calculation of Z-Score namely, the profitability or the return on investment, liquidity, leverage and the operating or efficiency. Hence this calculation relies on different metrics this is a significant measure in determining the financial strength of the company.

 

CITATION

https://www.ictsi.com/

https://www.ictsi.com/leadership-team

 

Researched and written by Criselda

Twitter: criseldarome

Semirara Mining and Power Corporation (SCC) Extended Graph Analysis

December 4th, 2019 Posted by Extended Analysis No Comment yet

About the Company

SCC

Semirara Mining and Power Corporation started as a Semirara Coal Corporation and transformed into a Philippine power industry committed in providing affordable and reliable electricity to the country. The Founding Chairman is David M. Consunji. 

Incorporated in the Philippines on February 26, 1980 with exclusive rights to explore, extract and develop the coal resources in Semirara Island, Antique Province, the right remains to this day. SCC is vertically integrated coal-fired power plants in the country. 

Semirara Mining and Power Corporation became a publicly traded company in 1983 under the Philippine Stock Exchange with the ticker symbol SCC. The company is headquartered in 3rd Floor Dacon Building, 2281 Chino Roces Avenue Extension, Makati City, Philippines.

 

Semirara Mining and Power Corporation (SCC) Extended Graph Analysis

 

1. SCC CASH FLOWS

SCC CASH FLOWS

2014 2015 2016 2017 2018 2019
Net cash provided by operating activities 11,925,643,441 10,683,869,034 16,420,476,772 18,206,968,085 9,503,158,826 18,846,489,534
Net cash used for investing activities -10,671,263,716 -5,115,627,968 -6,689,482,960 -7,281,852,466 -8,572,237,935 -8,802,225,466
Net cash provided by (used for) financing activities -2,388,159,045 -4,467,782,858 -7,316,857,789 -9,440,375,645 -7,489,807,103 -7,038,035,424
Capital expenditure -10,739,495,786 -5,036,739,075 -7,242,108,616 -6,324,077,517 -9,539,112,245 -9,780,999,781
Free cash flow 1,186,147,655 5,647,129,959 9,178,368,156 11,882,890,568 -35,953,419 9,065,489,753

Facts:

  • Cash from operating activities were Php 18.846 billion in 2019.
  • Net cash used for investing activities were Php -8.802 billion in 2019.
  • Net cash provided by (used for) financing activities were -7 billion in 2019.
  • Capital expenditures were Php -9.781 billion in 2019.
  • Free cash flow was Php 9 billion in 2019.

Explanation

  • Cash from operating activities although erratic in movement had a growth of 58 percent in five years.
  • Cash from investing activities were investment in property, plant and equipment; and purchases of intangibles.
  • Net cash provided by financing activities were debt issued, debt repayment and dividend paid.
  • Capital expenditure was investment in property, plant and equipment.
  • Free cash flow increases year-over-year except in 2018 where it suffered negative due to changes in working capital.

Interpretation

The company has an acceptable free cash flow, although suffered negative it increased from Php-36 million to Php 9 billion from 2018 to 2019. The company has efficiently managed to generate cash from operations in the last five years.

 

2. SCC BALANCE SHEET

SCC BALANCE SHEET

2014 2015 2016 2017 2018 2019
Total cash 3,683,125,544 5,205,842,396 7,114,141,283 8,521,640,371 1,954,063,676 1,954,063,676
Current assets 12,772,627,810 15,092,708,536 21,154,329,852 24,333,646,377 25,739,222,770 25,739,222,770
Net property, plant and equipment 36,366,478,374 39,758,121,302 43,352,166,628 43,014,048,021 43,519,724,033 43,519,724,033
Non-current assets 39,128,747,884 42,064,328,709 44,606,146,650 44,262,759,312 45,309,715,454 45,309,715,454
Total assets 51,901,375,694 57,157,037,245 65,760,476,502 68,596,405,689 71,048,938,224 71,048,938,224
Short-term debt 3,332,638,748 8,183,728,394 3,431,583,887 3,555,960,317 10,426,073,925 10,426,073,925
Current liabilities 12,138,201,589 15,555,721,715 15,652,536,957 14,407,272,446 20,372,103,747 20,372,103,747
Long-term debt 16,088,724,435 11,359,881,203 13,258,162,966 14,468,517,855 10,042,954,442 10,042,954,442
Total liabilities 29,195,164,178 30,255,955,086 31,474,165,253 30,917,026,549 31,116,251,620 31,116,251,620
Stockholders’ equity 22,706,211,516 26,901,082,159 34,286,311,249 37,679,379,140 39,932,686,604 39,932,686,604

Facts:

  • Cash was Php 2 billion in 2019.
  • Current assets were Php 25.7 billion in 2019.
  • Net property, plant and equipment was Php 43.5 billion in 2019.
  • Non-current assets were Php 45 billion in 2019.
  • Total assets were Php 71 billion in 2019.
  • Short-term debt was Php 10 billion in 2019.
  • Current liabilities were Php 20 billion in 2019.
  • Long-term debt was Php 10 billion in 2019.
  • Total liabilities were Php 31 billion in 2019.
  • Stockholders equity was Php 40 billion in 2019.

Explanation

  • Total cash was erratic in movement in the last five years and has a negative growth in five years. It fell 77 percent in one year from 2017 to 2018.
  • Cash represents 8 percent of current assets.
  • Current assets have doubled in five years. It represents 36 percent of total assets.
  • Property, Plant and equipment had increased 20 percent in five years. It represents 96 percent of non-current assets.
  • Non-current assets represents 64 percent of total assets.
  • Total assets increases year-over-year and has a growth of 37 percent in five years.
  • Short-term debt represents 51 percent of current liabilities.
  • Current liabilities represents 65 percent of total liabilities.
  • Long-term debt represents 32 percent of total liabilities.
  • Total liabilities was 44 percent of total liabilities and equity.
  • Total equity represents 56 percent of total liabilities and shareholders equity.

Interpretation

The company’s balance sheet shows that the management is efficient in running its business operation year-over-year. Further, it shows its growing in the last five years. And has sufficient current assets to pay current obligations in due time. 

 

3. SCC INCOME AND MARKET

SCC INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Sales 28,585,341,089 24,680,171,579 36,584,375,140 43,943,489,219 41,968,512,823 45,234,431,331
EBIT 6,559,565,972 9,899,091,968 13,009,730,429 15,738,076,298 13,554,916,247 11,629,313,377
Net Income 6,861,294,479 8,486,909,081 12,040,669,988 14,209,139,819 12,025,381,058 11,608,835,822
Market Capitalization 151,763,000,000 145,884,000,000 138,529,000,000 156,710,000,000 97,975,000,000 99,250,000,000
Intrinsic Value 116,785,324,423 138,626,168,139 136,759,304,573 173,053,868,169 116,632,959,353 130,497,083,292
EBITDA 8,560,350,354 11,644,990,348 17,110,448,223 22,671,652,962 21,406,861,156 19,509,179,548

Facts:

  • Sales were Php 45 billion in 2019.
  • EBIT was Php 11.629 billion in 2019.
  • Net income was Php 11.609 billion in 2019.
  • Market capitalization was Php 99.250 billion in 2019.
  • Intrinsic value was Php 130.487 billion in 2019.
  • EBITDA was Php 19.56 billion in 2019.

Explanation

  • Sales has a growth of 58 percent in five years and it grows year-over-year.
  • EBIT growth was 77 percent in five years.
  • Net income growth was 69 percent in five years.
  • Market capitalization decreased by 35 percent from 2014, it decreases year after year from 2014 to 2018, in 2019 it began to increased by 1.30 percent..
  • Intrinsic value was erratic in movement in the last five years, further, IV is greater by 31 percent against market value.
  • EBITDA growth was 128 percent in five years.

Interpretation

The net income of SCC represents 26 percent of Sales which is impressive, it never suffered a negative bottomline in the last five years. The management has managed to generate sufficient and increasing sales on its operations. SCC is profitable.

 

4. SCC FINANCIAL RATIOS

SCC FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset Turnover (average) 0.59 0.45 0.60 0.65 0.60 0.64
Return on Asset (ROA) % 14.20 15.56 19.59 21.15 17.22 16.50
Return on Equity (ROE) % 32.04 34.22 39.36 39.49 30.99 27.70
Financial Leverage (average) 2.29 2.12 1.91 1.82 1.78 1.72
Return on Invested Capital % 17.73 19.44 25.36 27.35 21.61 19.23
Interest Coverage 24.56 42.33 25.51 25.29 15.70 0.00
Earnings per Share Php 1.60 1.99 2.82 3.33 2.83 2.73

Facts:

  • Asset turnover was averaging 0.64 in 2019.
  • Return on assets was 16.5 percent in 2019.
  • Return on Equity was 27.70 percent in 2019.
  • Financial leverage was averaging 1.72 in 2019.
  • Return on invested capital was 19.23 percent.
  • Interest coverage was 15.70 in 2018.
  • Earnings per share was 2.73 in 2019.

Explanation

  • Asset turnover tells us that for every peso invested in assets the company generate 64 centavos of sales.
  • Return on assets indicates that for every peso in assets, the company generates 16.5 centavos of net income.
  • Return on equity tells us that every peso that was invested in equity it generates 27.7 centavos of net income.
  • Financial leverage indicates that for every peso in equity the company had Php 1.72 in total assets, Php 0.72 was borrowed.
  • Return on invested capital tells us that 19.23 percent is the return that the company makes over its invested capital.
  • Interest coverage tells us that SCC is able to make interest payments on its current obligations in due time.
  • Earnings per share means that if SCC distributed every peso of net income to its shareholders, each of their shares will receive Php 2.73.

Interpretation

Overall view of financial ratios indicates that the SCC is profitable.

 

5. SCC KEY OFFICERS

LIST OF KEY OFFICERS

NAME TITLE
Isidro A. Consunji CEO, Chairman of the Board
Maria Cristina C. Gotanum President, COO, Chief Risk Officer
Junalina S. Tabor CFO, Vice President
Jaime B. Garcia VP, Procurement and Logistics
Nena D. Arenas VP, Chief Governance Officer, Compliance Officer
Atty. John R. Sadullo VP, Legal Corporate Secretary, Corporate Information Officer
Antonio R. Delos Santos VP, Treasurer
Jose Antonio T. Villanueva VP, Marketing for Coal
Andreo O. Estrellado VP, Power Market and Commercial Operation
Ruben P. Lozada VP, Mining Operations, Resident Manager
Carla Cristina T. Levina VP, Chief Audit Executive
Jojo L. Tandoc VP, Human Resources and Organization Development
Kamine Andrea B. San Juan Assistant VP, Corporate Planning for Power

Explanation

  • Isidro A. Consunji is a BS Civil Engineering, University of the Philippines, Master’s Degree in Business Economics, Center for Research & Communication, Business Management, Asian Institute of Management, Advance Management from IESE School, Barcelona, Spain. 
  •  Maria Cristina C. Gotianun – BS Business Economics, University of the Philippines, Majored in Spanish, Instituto de Cultura Hispanica, Madrid, Spain
  • Jorge A. Consunji – BS Industrial Management, Engineering, La Salle University.
  • Cesar A. Buenaventura – Bachelor of Science in Civil Engineering as a Fulbright Scholar, Lehigh University, Bethlehem, Pennsylvania 
  • Herbert M. Consunji – Bachelor of Science in Commerce Major in Accounting, De La Salle University.
  • Ma. Edwina C. Laperal – BS Architecture, University of the Philippines, Masters Degree in Administration, University of the Philippines
  • Josefa Consuelo C. Reyes – AB Economics, University of British Columbia, Vancouver, Canada. Strategic Business Economics Program University of Asia and the Pacific.
  • Luz Consuelo A. Consunji – Bachelor’s Degree in Commerce Major in Management, Assumption College; Masters Degree in Business Economics, University of Asia and the Pacific.
  • Rogelio M. Murga – BS Mechanical Engineering, University of the Philippines; Senior Management Program, Harvard Business School, Vevey, Switzerland; Honorary Degree of Doctor of Science – Honors Causa, FEATI University.
  • Honorio O. Reyes-Lao – Bachelors of Arts Major in Economics, De La Salle University; Masters Degree in Business Management, Asian Institute of Management.
  • Antonio Jose U. Periquet – MBA, Darden Graduate School of Business Masters Degree in Economics, Oxford University, Bachelor’s Degree in Economics, Ateneo de Manila University.

 

6. SCC LOBBYING AND CONTRIBUTIONS

SEARCHED:

OpenSecret.org     The LOBBYIST

Result:

 

No Politicians or Lobbyists Found

 

 

7. SCC FINANCIAL STRENGTH

SCC FINANCIAL STRENGTH

DATA

PhP
Working capital 5,367,000,000
Total assets 71,048,938,224
Sales 45,234,431,331
EBIT 11,629,313,377
Market value of equity 99,250,000,000
Book value of total liabilities 31,116,251,620
Retained earnings 20,468,072,403

CALCULATION:

Ratio Score Result
A – Working Capital / Total Assets 0.08 1.20 0.09
B – Retained Earnings / Total Assets 0.29 1.40 0.40
C – EBIT / Total Assets 0.16 3.30 0.54
D – Market Value of Equity / Book Value of Total Liabilities 3.19 0.60 1.91
E – Sales / Total Assets 0.64 1.0 0.64
Z-Score     3.58

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation

Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

SCC has a Z-Score of 3.58. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy. In other terms, the company is not close to insolvency. The main factors of this statistical measurement is the profitability, liquidity, leverage and efficiency.

 

CITATION

http://www.semiraramining.com/our_organization

https://www.opensecrets.org/search?q=Semirara+Mining+and+Power+Corp+SCC&type=indiv&__cf_chl_captcha_tk__=a00a32188a7f3f85f65452c421f7a694ce5249e0-1575258353-0-ATFtgwWRMeDvt4iMyEHln_cmUthyzcEwWakDM8CDWFAjnNJG8KO3g6Yaw3rSIVpxFgyMhJ–rRfewraXaenfBeE2dU82-napg4-yJybfimHrTRE3A3ZHas9hNcdpdQBNVRm5xEVdT_fXaBJuatWzwQfz-7fFllcCEzFjBR-ose_2rAR4yRUF6bY9kbiYEVm6zRLRjfa18O3HCW_yZqFXe79BvIXifojvt2tnGyahP7ySG9HljRu-jA6OYvZSjl9S0JUCvEZf7ZQYMvB77F54hdshRamoCkb3FFdKDMIlxtxkDZbm_1ORWkppCrt-Ie6mJdLDbA6Bq4ObUu52z4PuDMdEt-Ufi7bIPnsIbRA24eFCOCkuPAyw-iAxqy6r2TEM_xknvqfXWZWoCIxzyYPAHfooY7RAYkkR_qJFr7-VgEq6xBFRhnveinLwcTee4NyFGg

 

Researched and written by Criselda

Twitter: criseldarome

 

PJSC LUKOIL Company (LKOH) Extended Graph Analysis

November 27th, 2019 Posted by Extended Analysis No Comment yet

About the Company

Lukoil

Lukoil is an oil and gas company, specializes in oil and gas exploration, refining, transportation, marketing and distribution. The company produces petroleum products and petrochemicals, their products are sold internationally in Russia, Eastern and Western Europe, near-abroad countries and the USA.

The company is operating under the following segments: Exploration and Production, Refining, Marketing and Distribution and Corporate and Other.

Lukoil was founded by Vagit Alekperov on November 25, 1991, headquartered in Moscow, Moscow. The company’s date of IPO was on April 18, 20013 registered under the ticker MCX:LKOH.

 

PJSC Lukoil Company Extended Graph Analysis

1. LKOH CASH FLOWS

LKOH CASH FLOWS

2014 2015 2016 2017 2018 2019
Net cash provided by operating activities 865,369,697,920 848,972,000,000 752,247,000,000 758,490,000,000 1,006,651,000,000 1,109,952,000,000
Net cash provided for investing activities -813,952,240,920 -525,722,000,000 -500,343,000,000 433,286,000,000 420,392,000,000 415,243,000,000
Net cash provided by (used for) financing activities 58,921,626,400 -253,063,000,000 -193,134,000,000 247,395,000,000 468,549,000,000 523,214,000,000
Capital expenditures -813,952,240,920 -601,325,000,000 -499,679,000,000 -512,108,000,000 -451,679,000,000 -431,851,000,000
Free cash flows 51,417,457,000 247,647,000,000 252,568,000,000 246,382,000,000 554,972,000,000 678,101,000,000

Facts:

  • Cash from operating activities were RUB 1.1 trillion in 2019.
  • Cash provided for investing activities were RUB -415 billion in 2019.
  • Net cash from financing activities were RUB -523 billion in 2019.
  • Capital expenditures were RUB -431.9 billion in 2019.
  • Free cash flows were RUB 678 billion in 2019.

Explanation

  • Cash from operating activities increases year-over-year as net income increases year-over-year.
  • Cash from investing activities were the investment in property, plant and equipment; acquisitions, purchases of investments and purchases of intangibles.
  • Net cash provided by financing activities were debt repayment, common stock repurchased, dividend paid and other financing activities.
  • Capital expenditures are investments in property, plant and equipment.
  • Free cash flows had a growth of 1219 percent in five years and increases year-over-year.

Interpretation

The company was efficient in providing cash from operations year-over-year in the last five years. Further, the management was able to provide a positive free cash flow in the last five years.

 

2. LKOH BALANCE SHEET

LKOH BALANCE SHEET

2014 2015 2016 2017 2018
Total cash 179,988,892,720 281,031,000,000 278,301,000,000 349,951,000,000 518,850,000,000
Total current assets 1,265,091,787,960 1,213,647,000,000 1,255,641,000,000 1,308,114,000,000 1,478,479,000,000
Net property, plant and equipment 4,528,460,507,480 3,411,153,000,000 3,391,366,000,000 3,575,165,000,000 3,829,164,000,000
Total non-current assets 4,949,472,204,040 3,806,960,000,000 3,759,023,000,000 3,918,101,000,000 4,253,903,000,000
Total assets 6,214,563,992,000 5,020,607,000,000 5,014,673,000,000 5,226,215,000,000 5,732,382,000,000
Short-term debt 118,788,222,280 60,506,000,000 58,429,000,000 128,713,000,000 99,625,000,000
Total current liabilities 789,994,485,280 695,168,000,000 830,686,000,000 958,847,000,000 914,560,000,000
Total non-current liabilities 914,841,629,520 1,102,971,000,000 963,107,000,000 784,417,000,000 752,262,000,000
Total liabilities 1,704,836,114,800 1,798,139,000,000 1,793,793,000,000 1,743,264,000,000 1,666,822,000,000
Total stockholders’ equity 4,509,727,877,200 3,222,468,000,000 3,220,880,000,000 3,482,951,000,000 4,065,560,000,000

Facts:

  • Cash was RUB 518.9 billion in 2018.
  • Current assets were RUB 1.478 trillion in 2018.
  • Net property, plant and equipment was RUB 3.8 trillion in 2018.
  • Non-current assets were RUB 4.254 trillion in 2018.
  • Total assets were RUB 5.7 trillion in 2018.
  • Short-term debt was RUB 99.6 billion in 2018.
  • Current liabilities were RUB 914.6 billion in 2018.
  • Non-current liabilities were RUB 752 billion in 2018.
  • Total liabilities were RUB 1.667 trillion in 2018.
  • Shareholders equity was RUB 4.066 trillion in 2018.

Explanation

  • Cash has a growth of 188 percent in five years and it represents 35 percent of current assets.
  • Current assets increased by 17 percent in 5 years and it represents 26 percent of total assets.
  • Net property, plant and equipment decreased by 15 percent in five years and it represents 90 percent of total non-current assets.
  • Non-current assets decreased by 14 percent in five years and it represents 74 percent of the total assets.
  • Total assets decreased by 8 percent due to property, plant and equipment.
  • Short-term debt represents 11 percent of total current liabilities.
  • Current liabilities represents 55 percent of total liabilities.
  • Non-current liabilities represents 45 percent of total liabilities.
  • Total liabilities represents 29 percent of the total liabilities and equities.
  • Stockholders equity represents 71 percent of the total liabilities and equities.

Interpretation

The company has a sound balance sheet in the last five years. The company is operating its business using two-thirds of the shareholders investment and one-third using the creditor’s money.

 

3. LKOH INCOME AND MARKET

LKOH INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Revenue 8,013,730,295,480 5,749,050,000,000 5,227,045,000,000 5,936,705,000,000 8,035,889,000,000 8,325,588,000,000
EBIT 493,552,000,760 464,692,000,000 416,820,000,000 503,811,000,000 768,721,000,000 860,157,000,000
Net Income 263,813,244,240 291,135,000,000 206,794,000,000 418,805,000,000 619,174,000,000 673,275,000,000
Market Capitalization USD 30,216,000,000 22,762,000,000 40,646,000,000 41,078,000,000 49,695,000,000 66,635,000,000
Intrinsic Value USD 31,345,008,852 32,862,137,222 123,791,444,678 119,855,455,079 98,365,393,274 185,462,883,775
EBITDA 901,889,989,000 784,162,000,000 624,386,000,000 872,354,000,000 1,148,295,000,000 1,251,370,000,000

Facts:

  • Revenue was RUB 8.326 trillion or USD 130 billion in 2019.
  • EBIT was RUB 860 billion USD 13.455 billion in 2019.
  • Net income was RUB 673 billion or USD 10.532 billion in 2019.
  • Market capitalization was USD 66.6 billion or RUB 4.260 trillion in 2019.
  • Intrinsic value was USD 185 billion or RUB 11.856 trillion in 2019.
  • EBITDA was RUB 1.251 trillion or USD 19.574 billion in 2019.

Explanation

  • Revenue was erratic in movement in the last five years and has grown only 4 percent..
  • EBIT has a growth of 74 percent in five years.
  • Net income has a growth of 155 percent in five years. Further, it represents 8 percent of the total revenue.
  • Market capitalization increased by 121 percent in five years.
  • Intrinsic value increased by 492 percent in five years. Moreover, intrinsic value was greater by 178 percent against market capitalization.
  • EBITDA has a growth of 39 percent in five years. 

Interpretation

The company is profitable, the management has proficiently managed its business operation in the last five years.

4. LKOH FINANCIAL RATIOS

LKOH FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset Turnover (average) 1.63 1.02 1.04 1.16 1.47 1.46
Return on Asset (ROA) % 5.38 5.18 4.12 8.18 11.3 11.82
Return on Equity (ROE) % 7.44 7.53 6.42 12.49 16.41 17.74
Financial Leverage (avg) 1.37 1.56 1.56 1.5 1.41 1.53
Return on Invested Capital % 6.83 6.71 5.71 10.67 14.51 15.74
Interest Coverage 11.63 9.83 7.76 23.68 25.01 22.62

Facts:

  • Asset turnover was averaging 1.46 in 2019.
  • Return on assets was 11.82 percent in 2019.
  • Return on equity was 17.74 percent in 2019.
  • Financial leverage was averaging 1.53 in 2019.
  • The return on invested capital was 15.74 percent in 2019.
  • Interest coverage 22.62 in 2019.

Explanation

  • Asset turnover indicates that the company is generating $1.46 of net sales for every dollar in assets.
  • Return on assets indicates that every dollar invested in the entire asset base produced 0.1182 cents.
  • Return on equity indicates that every dollar of shareholders equity generated 17.7 cents in profit.
  • Financial leverage indicates that in every dollar in equity LKOH had $1.53 in total assets. $0.53 was borrowed.
  • Return on invested capital indicates that 15.74 percent is the return that the company makes over its capital. 
  • Interest coverage indicates that the company is making more than enough money to cover interest payments 22 times over.

Interpretation

The company is profitable and management is efficient in the performance of its business operations.

 

5. LKOH KEY EXECUTIVE COMPENSATION

LKOH COMPENSATION OF DIRECTORS AND MANAGEMENT COMMITTEE MEMBERS

REMUNERATION OF DIRECTORS AND MANAGEMENT COMMITTEE MEMBERS

2016 2017 2018
Remuneration for performance of duties of a member of the Board of Directors, RUB 6,000,000 6,500,000 6,750,000
Total amount paid to members of the Board of Directors, RUB million * 192,400,000 261,100,000 816,800,000
Total amount paid to members of the Management Committee, RUB million ** 1,636,300 1,738,800 5,502,400***

* This amount includes, among others, payments to Directors who are employed by the Company but are not members of the Management Committee (such as salary, bonuses and other types of remuneration).

** Including the remuneration of the President of PJSC LUKOIL

*** With due regard for execution of the Regulations on Long-Term Incentives for Employees of PJSC LUKOIL and its Subsidiaries in 2013-2017

Facts:

  • Compensation for performance of duties of a member of a Board of Directors was RUB 6,750,000 in 2018.
  • Total amount paid to members of the Board of Directors was RUB 816,800,000 in 2018.
  • Total amount paid to members of the management committee was RUB 5,502,400 in 2018.

LUKOIL KEY PEOPLE

NAME TITLE
Ravil Ulfatovich Maganov Executive Director, Vice Chairman
Vagit Yusufovich Alekperov CEO, Director. President
Leonid Arnoldovich Fedun/ Executive Director Executive Director
Lyubov N Khoba/ Executive Director Director, Chief Accountant, President

 

6. LKOH LOBBYING AND CONTRIBUTIONS

 

No Politicians or Lobbyist Found – OpenSecret.org  

Center for Responsive Politics

 

7. LKOH FINANCIAL STRENGTH

LKOH FINANCIAL STRENGTH

DATA

(in RUB)
Working capital 563,919,000,000
Total assets 5,732,382,000,000
Sales 8,325,588,000,000
EBIT 860,157,000,000
Market value of equity 4,342,735,440,000
Book value of total liabilities 1,666,822,000,000
Retained earnings 3,963,628,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.10 1.20 0.12
B – Retained Earnings / Total Assets 0.69 1.40 0.97
C – EBIT / Total Assets 0.15 3.30 0.50
D – Market Value of Equity / Book Value of Total Liabilities 2.61 0.60 1.56
E – Sales / Total Assets 1.45 1.0 1.45
Z-Score 4.60

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation:

Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Lukoil has a Z-Score of 4.60. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy. In other terms, the company is not close to insolvency. The main factors of this statistical measurement is the profitability, liquidity, leverage and efficiency.

 

CITATION

http://www.lukoil.com/

https://www.opensecrets.org/search?q=++PJSC+Lukoil+LKOH&type=indiv

 

Reseahttps://www.morningstar.com/stocks/xlon/lkoh/quoterched and written by Criselda

 

 

 

 

Vestas Wind System A/S (VWS) Extended Graph Analysis

November 19th, 2019 Posted by Extended Analysis No Comment yet

About the Company

vestas

Vestas Wind System manufactures wind turbines around the world. Vestas is an energy industry that install and service wind turbines. The company has more than 108 GW wind turbines in 80 countries.

Vestas is a Danish company founded in 1945, headquartered in Hedeager 42 Aarhus N, 8200 Denmark with more than 25,000 employees  Vestas is under Energy Sector and under Renewable Energy Industry.

 

Vestas Wind System A/S (VWS) Extended Graph Analysis

 

1. VWS CASH FLOWS

VWS CASH FLOWS

2014 2015 2016 2017 2018 2019
Net cash provided by operating activities 1,126,000,000 1,472,000,000 2,181,000,000 1,625,000,000 1,021,000,000 1,357,000,000
Net cash used for investing activities -285,000,000 -425,000,000 -817,000,000 -407,000,000 -603,000,000 21,000,000
Net cash provided by (used for) financing activities 389,000,000 -360,000,000 -611,000,000 -974,000,000 -639,000,000 -249,000,000
Capital expenditure -278,000,000 -368,000,000 -489,000,000 -491,000,000 -607,000,000 -733,000,000
Free cash flow 848,000,000 1,104,000,000 1,692,000,000 1,134,000,000 414,000,000 624,000,000

Facts

  • Cash provided by operating activities was $1.357 billion in 2019.
  • Net cash used for investing activities was $21 million in 2019.
  • Net cash provided by (used for) financing activities was -$249 million in 2019.
  • Capital expenditure was -$733 million in 2019.
  • Free cash flow was $624 million in 2019.

Explanation

  • Cash from operation had a growth of 21 percent in five years.
  • Cash from investing activities, purchases of investments and other investing activities have a significant amount.
  • Cash from financing activities were common stock repurchases and dividend payment.
  • Capital expenditures are purchases of property, plant and equipment and purchase of intangibles.
  • Free cash flow although erratic in movement in the last five years, it has a positive results year-over-year.

Interpretation

The company managed to generate cash for the operation of the business. Its net income is sufficient to generate positive operating cash flow.

 

2. VWS BALANCE SHEET

VWS BALANCE SHEET

2014 2015 2016 2017 2018 2019
Total cash 1,819,000,000 2,569,000,000 3,226,000,000 3,204,000,000 3,308,000,000 3,308,000,000
Total current assets 4,696,000,000 5,976,000,000 6,950,000,000 8,006,000,000 8,555,000,000 8,555,000,000
Net property, plant and equipment 1,132,000,000 1,279,000,000 1,329,000,000 1,247,000,000 1,318,000,000 1,318,000,000
Total non-current assets 2,301,000,000 2,611,000,000 2,981,000,000 2,865,000,000 3,344,000,000 3,344,000,000
Total assets 6,997,000,000 8,587,000,000 9,931,000,000 10,871,000,000 11,899,000,000 11,899,000,000
Short-term debt 604,000,000 0 0 0 0 0
Total current liabilities 4,357,000,000 4,805,000,000 5,627,000,000 6,533,000,000 7,405,000,000 7,405,000,000
Long-term debt 3,000,000 495,000,000 496,000,000 497,000,000 498,000,000 498,000,000
Total liabilities 4,618,000,000 5,688,000,000 6,741,000,000 7,759,000,000 8,807,000,000 8,807,000,000
Total stockholders’ equity 2,379,000,000 2,899,000,000 3,190,000,000 3,112,000,000 3,092,000,000 3,092,000,000

Facts:

  • Total cash was $3.3 billion in 2018.
  • Current assets was $8.555 billion in 2018.
  • Net property, plant and equipment was $1.3 billion in 2018.
  • Non-current assets were $3.3 billion in 2018.
  • Total assets were $11.899 billion in 2018.
  • Short-term debt was zero from 2015 to 2018.
  • Current liabilities were $7.405 billion in 2018.
  • Long-term debt was $498 million in 2018.
  • Total liabilities were $8.807 billion in 2018.
  • Stockholders equity was $3.092 billion in 2018.

Explanation

  • Total cash increases year-over-year and has grown 82 percent in five years. Moreover, it represents 39 percent of total current assets.
  • Current assets increases year-over-year and has a growth of 82 percent in five years. Further, it represents 72 percent of total assets.
  • Net property, plant and equipment increased by 16 percent in five years. Further, it represents 39 percent of the total non-current assets.
  • Non-current assets grows 45 percent in five years and it represents 28 percent of the total assets in 2018.
  • Total assets increases year-over-year and has grown 70 percent in the last five years.
  • There was zero short-term debt in the last four years.
  • Current liabilities represents 84 percent of the total liabilities in 2018.
  • Long-term debt represents 6 percent of the total liabilities in 2018.
  • Total liabilities represents 74 percent of the total liabilities and stockholders equity in 2018.
  • Equity represents 26 percent of the total liabilities and total equity in 2018.  

Interpretation

The company has a strong balance sheet hence current assets is greater than its current liabilities which means that VWS is capable of paying its current obligations when due time comes.

3. VWS FINANCIAL RATIOS

VWS FINANCIAL RATIOS

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Asset Turnover (avg) 1.13 1.03 0.79 0.98 0.96 1.09 1.08 1.11 0.96 0.89 0.85
Return on Asset  % 9.86 2.31 -2.25 -13.14 -1.30 6.20 8.79 10.42 8.60 6.01 5.02
Return on Equity % 21.77 5.10 -6.23 -45.88 -5.21 20.09 25.96 31.70 28.37 22.05 20.74
Financial Leverage (avg) 1.91 2.57 2.98 4.30 3.70 2.94 2.96 3.11 3.49 3.85 4.37
Return on Invested Capital % 21.23 5.69 -2.23 -27.28 -0.77 16.17 21.59 27.28 24.53 19.15 17.08
Interest Coverage 14.05 3.53 -0.28 -11.08 0.58 15.94 49.68 50.50 80.47 42.36 0.00

Facts:

  • Asset turnover ratio was 0.85 in 2019.
  • Return on assets were 5.02 percent in 2019.
  • Return on equity was 20.74 percent in 2019.
  • Financial leverage was averaging 4.37 in 2019.
  • Return on invested capital was 17.08 percent in 2019.
  • Interest coverage were 42.36 and 0.00 in 2018 and 2019 respectively.

Explanation

  • Asset turnover means that a ratio of 0.85 indicate a dollar of asset generated 85 cents of net sales.
  • Return on assets indicates that every dollar invested in asset it generated 5.02 cents of net income.
  • Return on equity indicates that every dollar of shareholders equity VWS generates 20.74 cents of net income. 
  • Financial leverage means that for every dollar invested in equity the company generated $4.37 in total assets.Further, $3.37 was borrowed. Furthermore, it indicates that VWS starts to get risky.
  • Return on invested capital means that the company is making 17.08 percent over its invested capital. In other terms, for every dollar invested in capital the company generates 0.1708 cents.
  • Interest coverage means that the company has the ability to make interest payments on its debt when due date comes. In other words, the company is making sufficient money from current operations to pay for current interest rates.

Interpretation

Financial ratios shows that the company is operating well its business except in the area of asset turnover which needs a little improvement.

 

4. VWS INCOME AND MARKET

VWS INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Sales 6,910,000,000 8,423,000,000 10,237,000,000 9,953,000,000 10,134,000,000 10,866,000,000
EBIT 558,000,000 859,000,000 1,421,000,000 1,230,000,000 959,000,000 898,000,000
Net Income 392,000,000 685,000,000 965,000,000 894,000,000 684,000,000 640,000,000
Market Capitalization 8,164,000,000 15,513,000,000 14,491,000,000 14,000,000,000 14,872,000,000 14,472,000,000
Intrinsic Value 7,635,146,286 26,442,872,224 15,639,413,893 24,227,525,567 50,141,478,405 15,344,024,990
EBITDA 935,000,000 1,249,000,000 1,718,000,000 1,628,000,000 1,390,000,000 871,000,000

Facts

  • Sales was $10.866 billion in 2019.
  • EBIT was $898 million in 2019.
  • Net income was $640 million in 2019.
  • Market capitalization was $14.472 billion in 2019.
  • Intrinsic value was $15.3 billion in 2019.
  • EBITDA was $871 million in 2019.

Explanation

  • Sales has a growth of 57 percent in five years.
  • EBIT increased by 61 percent in five years and it represents 8 percent of sales.
  • Net income grew 63 percent in five years and it represents 6 percent of sales.
  • Market capitalization increased by 77 percent in the last five years.
  • Intrinsic value was greater by 6 percent against market capitalization.
  • EBITDA decreased 7 percent in five years. It represents 8 percent of sales.

Interpretation

The company had not seen any negative bottomline in the last five years, although it decreases year-over-year from 2017 to 2019 at an average rate of 12 percent. 

 

5. VWS BOARD OF DIRECTORS COMPENSATION

VWS TOTAL BOARD OF DIRECTORS COMPENSATION

TOTAL COMPENSATION (in DKK)

2016 2017 2018
Bert Nordberg 2,100,000 2,200,000 2,143,353
Lard Josefsson 1,800,000 1,800,000 1,832,918
Carsten Bjerg 900,000 900,000 909,427
Eija Pitkanen 700,000 700,000 650,000
Henrik Andersen 500,000 1,100,000 1,100,000
Henry Stenson 700,000 700,000 483,888
Jens Hesselberg Lund 0 0 650,000
Kim Hvid Thomsen 700,000 700,000 650,000
Michael Abildgaard Lisbjerg 400,000 400,000 400,000
Peter Lindhoist 400,000 400,000 400,000
Sussie Dvinge Agerba 400,000 400,000 400,000
Torben Ballegaard 400,000 700,000 650,000

Facts:

  • Bert Nordberg total compensation was DKK 2.1 million in 2018.
  • Lard Josefsson total compensation was DKK 1.8 million in 2018.
  • Carsten Bjerg total compensation was DKK 909 thousand in 2018.
  • Eija Pitkänen total compensation was DKK 650 thousand in 2018.
  • Henrik Andersen total compensation was DKK 1.1 million in 2018.
  • Henry Stenson total compensation was DKK 483,888 in 2018.
  • Jens Hesselberg Lund total compensation was DKK 650,000 in 2018.
  • Kim Hvid Thomsen total compensation was DKK 650,000 in 2018.
  • Michael Abildgaard Lisbjerg total compensation was DKK 400 thousand in 2018.
  • Peter Lindhoist total compensation was DKK 400 thousand in 2018.
  • Sussie Dvinge Agerbo total compensation was DKK 400 thousand in 2018.
  • Torben Ballegaard total compensation was DKK 400 thousand in 2018.

Explanation

  • Bert Nordberg compensation represents 21 percent of the total compensation in 2018.
  • Lard Josefsson compensation represents 18 percent of the total compensation in 2018.
  • Carsten Bjerg compensation represents 9 percent of the total compensation in 2018.
  • Eija Pitkanen compensation represents 6 percent of the total compensation in 2018.
  • Henrik Andersen compensation represents 11 percent of the total compensation in 2018.
  • Jens Hesselberg Lund compensation represents 6 percent of the total compensation in 2018.
  • Kim Hvid Thomsen compensation represents 6 percent of the total compensation in 2018.
  • Michael Abildgaard Lisbjerg compensation represents 4 percent of the total compensation.
  • Peter Lindhoist compensation represents 4 percent of the total compensation in 2018.
  • Sussie Dvinge Agerbo compensation represents 4 percent of the total compensation in 2018.
  • Torben Ballegaard compensation represents 6 percent of the total compensation in 2018.

Interpretation

The total board of directors compensation represents 1.6 percent of the net income in 2018.

 

6. LOBBYING AND CONTRIBUTIONS

VWS LOBBYING AND CONTRIBUTIONS

 

TOTAL LOBBYING EXPENDITURES
Period USD
2008 210,000
2009 150,000
2010 325,000
2011 310,000
2012 480,000
2013 220,000
2014 270,000
2015 270,000
2016 180,000
2017 540,000
2018 390,000
2019 250,000

Facts:

  • Total lobbying expenditures in 2008 was $210 thousand.
  • Total lobbying expenditures in 2009 was $150 thousand.
  • Total lobbying expenditures in 2010 was $325 thousand.
  • Total lobbying expenditures in 2011 was $310 thousand.
  • Total lobbying expenditures in 2012 was $480 thousand.
  • Total lobbying expenditures in 2013 was $220 thousand.
  • Total lobbying expenditures in 2014 was $270 thousand.
  • Total lobbying expenditures in 2015 was $270 thousand.
  • Total lobbying expenditures in 2016 was $180 thousand.
  • Total lobbying expenditures in 2017 was $540 thousand.
  • Total lobbying expenditures in 2018 was $390 thousand.
  • Total lobbying expenditures in 2019 was $250 thousand.

Explanation

The company is spending a yearly lobbying from 2008 to 2019.  A statement from OpenSecret stated that, all lobbying expenses report came from the Senate Office of Public Records. The data for the most recent years was downloaded on September 19, 2019.

 

7. VWS FINANCIAL STRENGTH

VWS FINANCIAL STRENGTH

DATA:

EUR
Working capital 1,150,000,000
Total assets 11,899,000,000
Sales 10,866,000,000
EBIT 959,000,000
Market value of equity 14,472,000,000
Book value of total liabilities 8,807,000,000
Retained earnings 3,042,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.10 1.20 0.12
B – Retained Earnings / Total Assets 0.26 1.40 0.36
C – EBIT / Total Assets 0.08 3.30 0.27
D – Market Value of Equity / Book Value of Total Liabilities 1.64 0.60 0.99
E – Sales / Total Assets 0.91 1.0 0.91
Z-Score 2.64

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

Explanation

Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

The result of the calculated Z-Score of VWS was 2.64. Dr. Edward Altman indicate that a grading scale of 1.8 to 3 tells us that the company will likely declare bankruptcy in the near future.

There are four main categories in the calculation of Z-Score namely, the profitability or the return on investment, liquidity, leverage and the operating or efficiency.

Hence this calculation relies on different metrics this is a significant measure in determining the financial strength of the company.

CITATION

https://www.vestas.com/

https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2019&id=F318846

Researched and written by Criselda

 

 

 

 

Costco Wholesale Corp (COST) Extended Graph Analysis

November 12th, 2019 Posted by Extended Analysis No Comment yet

About the Company

costco logo

Costco is a warehouse club with 770 locations worldwide and selling different kinds of merchandise. They have specialty departments and offer exclusive services to members.The company has 245,000 number of employees as of 2018.

Costco was founded in July 12, 1976 at San Diego, California as Price Club and on September 15, 1983 as Costco in Seattle, Washington. The company is headquartered in Issaquah, Washington, United States. The company was founded by James Sinegal in 1983; Jeffrey Brotman in 1983 and Sol Price in 1976. Costco became public in an initial public offering on December 1, 1985.

Costco is serving the United States, Canada, United Kingdom, Australia, Mexico, Japan, China, Taiwan, Spain, France, South Korea and Iceland. Costco Wholesale Corp is under Discount Store Industry and Consumer Defensive Sector. 

Costco Wholesale Corp (COST) Extended Graph Analysis

 

1. COST CASH FLOWS

COST CASH FLOWS

2015 2016 2017 2018 2019 2019 TTM
Net cash provided by operating activities 4,285,000,000 3,292,000,000 6,726,000,000 5,774,000,000 6,356,000,000 6,356,000,000
Net cash used for investing activities -2,480,000,000 2,345,000,000 -2,366,000,000 -2,947,000,000 2,865,000,000 2,865,000,000
Net cash provided (used for) financing activities -2,324,000,000 -2,419,000,000 -3,218,000,000 1,281,000,000 -1,147,000,000 -1,147,000,000
Capital expenditure -2,393,000,000 -2,649,000,000 -2,502,000,000 -2,969,000,000 -2,998,000,000 -2,998,000,000
Free cash flow 1,892,000,000 643,000,000 4,224,000,000 2,805,000,000 3,358,000,000 3,358,000,000

Facts:

  • The net cash provided by operating activities was $6.356 billion in 2019 trailing twelve months.
  • Net cash used for investing activities was $2.865 billion in 2019 trailing twelve months.
  • Net cash provided (used for) financing activities was -$1.147 billion in 2019 trailing twelve months.
  • Capital expenditure was -$2.998 billion in 2019 trailing twelve months.
  • Free cash flow was $3.358 billion in 2019 trailing twelve months.

Explanation:

  • Cash from operating activities had a growth of 48 percent in five years.
  • Cash from investing activities consists of investment in property, plant and equipment and purchases of investments.
  • Net cash provided by financing activities were dividends payments and common stock repurchased.
  • Capital expenditures were investments in property, plant and equipment.
  • Free cash flows was erratic in movement in the last five years, however, it has grown 77 percent in five years.

Interpretation

The company’s cash flow was stable and has never suffered negative in the last five years.

 

2. COST BALANCE SHEET

COST BALANCE SHEET

2015 2016 2017 2018 2019
Total cash 6,419,000,000 4,729,000,000 5,779,000,000 7,259,000,000 9,444,000,000
Total current assets 17,299,000,000 15,218,000,000 17,317,000,000 20,289,000,000 23,485,000,000
Net property, plant and equipment 15,401,000,000 17,043,000,000 18,161,000,000 19,681,000,000 20,890,000,000
Total non-current assets 16,141,000,000 17,945,000,000 19,030,000,000 20,541,000,000 21,915,000,000
Total assets 33,440,000,000 33,163,000,000 36,347,000,000 40,830,000,000 45,400,000,000
Short-term debt 1,283,000,000 1,100,000,000 86,000,000 0 1,699,000,000
Total current liabilities 16,540,000,000 15,575,000,000 17,495,000,000 19,926,000,000 23,237,000,000
Long-term debt 4,864,000,000 4,061,000,000 6,573,000,000 6,487,000,000 5,124,000,000
Total liabilities 22,823,000,000 21,084,000,000 25,569,000,000 28,031,000,000 30,157,000,000
Total stockholders’ equity 10,617,000,000 12,079,000,000 10,778,000,000 12,799,000,000 15,243,000,000

Facts:

  • The total cash was $9.444 billion in 2019.
  • Current assets were $23.485 billion in 2019.
  • Net property, plant and equipment was $20.890 billion in 2019.
  • Non-current assets were $21.915 billion in 2019.
  • Total assets were $45.400 billion in 2019.
  • The short-term debt was $1.699 billion in 2019.
  • Current liabilities were $23.237 billion in 2019.
  • Long-term debt was $5.124 billion in 2019.
  • Total liabilities were $30.157 billion in 2019.
  • Stockholders equity was $15.243 billion in 2019.

Explanation:

  • Total cash represents 40 percent of total current assets.
  • Current assets represents 52 percent of total assets.
  • Net property, plant and equipment represents 95 percent of non-current assets.
  • Non-current assets represents 48 percent of total assets.
  • Total assets had a growth of 36 percent in five years.
  • Short-term debt represents 7 percent of current liabilities.
  • Current liabilities represents 77 percent of total liabilities.
  • Long-term debt represents 17 percent of the total liabilities.
  • Total liabilities represents 66 percent of the total liabilities and equity.
  • Total stockholders equity represents 34 percent of the total liabilities and equity.

Interpretation

Total cash and total assets is increasing year-over-year in the last five years. Its total cash represents 20 percent of the total assets which is good and it shows that the management is efficient in producing liquid resources for the business operation. Its financial health shows that the company has enough cash to pay for its current obligations.

 

3. COST FINANCIAL RATIOS

COST FINANCIAL RATIOS

2015 2016 2017 2018 2019 TTM
Asset Turnover (avg) 3.50 3.56 3.71 3.67 3.54 3.54
Return on Asset (ROA) % 7.15 7.06 7.71 8.12 8.49 8.49
Return on Equity (ROE) % 20.74 20.71 23.44 26.59 26.10 26.10
Financial Leverage (avg) 3.15 2.75 3.37 3.19 2.98 2.98
Return on Invested Capital % 13.69 14.18 15.78 17.44 17.09 17.09
Interest Coverage 30.06 28.21 31.14 28.94 32.77 32.77

Facts:

  • Asset turnover was averaging 3.54 in 2019 and the trailing twelve months.
  • Return on assets was 8.49 percent in 2019 and the trailing twelve months.
  • Return on equity was 26.10 percent in 2018 and the trailing twelve months.
  • Financial leverage was averaging 2.98 in 2019 and the trailing twelve months.
  • The return on invested capital was 17.09 percent in 2019 and the trailing twelve months.
  • Interest coverage was 32.77 in 2019 and the trailing twelve months.

Explanation:

  • Asset turnover indicate that for every dollar invested in assets the company generate an average of $3.54 sales.
  • Return on assets indicates that the company generates 8.49 cents of net income for every dollar invested in assets.
  • Return on equity indicates that for every dollar invested in equity it generates 26 cents of net income.
  • Financial leverage means that for every dollar in equity, COST had $2.98 in total assets, it borrowed the other $1.98. The ratio is fairly conservative.
  • Return on invested capital means that the company makes a 17.09 percent return over the invested capital. In other terms, the company makes a $0.17 return for every $1 over the invested capital.
  • Interest coverage indicates that the company is making more than enough cash to pay for its current interest obligations on its debt and extra cash left over to pay for the principal. In other words, the company is making 32.77 times more earnings than current interest payments.

Interpretation

Financial ratio analysis indicates that the company has a good financial performance in the last five years.

 

4. COST INCOME AND MARKET

COST FINANCIAL RATIOS

2015 2016 2017 2018 2019 TTM
Sales 116,199,000,000 118,719,000,000 129,025,000,000 141,576,000,000 152,703,000,000 152,703,000,000
EBIT 3,624,000,000 3,672,000,000 4,111,000,000 4,480,000,000 4,737,000,000 4,737,000,000
Net Income 2,377,000,000 2,350,000,000 2,679,000,000 3,134,000,000 3,659,000,000 3,659,000,000
EBITDA 4,855,000,000 5,007,000,000 5,543,000,000 6,038,000,000 6,407,000,000 6,407,000,000
Market Capitalization 71,024,000,000 70,327,000,000 81,726,000,000 89,732,000,000 94,542,000,000 130,499,000,000
Intrinsic Value 143,216,880,173 141,158,371,538 134,670,225,036 156,583,026,744 129,618,081,523 244,423,517,581

Facts:

  • Total sales were $152.7 billion in 2019 and the trailing twelve months.
  • EBIT was $4.737 billion in 2019 and the trailing twelve months.
  • Net income was $3.659 billion in 2019 and the trailing twelve months.
  • EBITDA was $6.407 billion in 2019 and the trailing twelve months.
  • Market capitalization was $130.499 billion in the trailing twelve months.
  • Intrinsic value was $244 billion in the trailing twelve months.

Explanation:

  • Sales increases year-over-year at an average rate of 6 percent.
  • Sales has a growth of 31 percent in five years.
  • EBIT has a growth of 31 percent in five years.
  • EBIT represents 3 percent of sales.
  • Net income increases year-over-year at an average of 9 percent.
  • Net income has a growth of 54 percent in five years.
  • Net income represents 2.4 percent of sales.
  • EBITDA has a growth of 32 percent in five years.
  • EBITDA represents 4 percent of sales.
  • Market capitalization increases 84 percent from 2015 to current date.
  • Intrinsic value increases 71 percent from 2015 to current date.
  • Intrinsic value is greater by 87 percent against market value.

Interpretation

Income and market are trending up from 2015 to current date. It shows that the company is profitable. Moreover, it indicates that the stock value of COST is undervalued.

 

5. COST EXECUTIVE COMPENSATION

COST KEY EXECUTIVE COMPENSATION

2014 2015 2016 2017 2018
Key Executive Compensation 12,287,863 17,319,745 21,561,342 21,924,799 23,803,010
W. Craig Jelinek/ President and CEO 5,624,658 6,340,393 6,503,276 6,620,969 7,408,513
Richard A. Galanti/ EVP and CFO 3,352,768 3,745,757 3,905,567 3,988,712 4,286,893
Joseph P. Portera/ EVP and COO, Eastern and Canadian Division 3,310,437 3,645,509 3,770,037 3,828,591 4,100,211
Paul G. Moulton/ EVP and Chief Information Officer 0 3,588,086 3,728,424 3,773,349 4,022,591
James Murphy/ EVP and COO, International Division 0 0 3,654,038 3,713,178 3,984,802

Facts:

  • Total key executive compensation was $23.8 million in 2018.
  • W. Craig Jelinek total compensation was $7.4 million in 2018.
  • Richard A. Galanti total compensation was $4.287 million in 2018.
  • Joseph P. Portera total compensation was $4.1 million in 2018
  • Paul G. Moulton total compensation was $4.0 million in 2018.
  • James Murphy’s total compensation was $3.984 million in 2018.

Explanation:

  • Total key executive compensation represents 0.76 percent of the net income in 2018.
  • W. Craig Jelinek total compensation was 31 percent of the total key executive compensation.
  • Richard A. Galanti total compensation in 2018 represents 18 percent of the total key executive compensation.
  • Joseph P. Portera total compensation represents 17 percent of the total key executive compensation in 2018.
  • Paul G. Moulton total compensation in 2018 represents 17 percent of the total key executive compensation.
  • James Murphy’s total compensation in 2018 represents 17 percent of the total key executive compensation.

Interpretation

The disclosed above key executives compensation are the most highly compensated executive officers during the year.

 

5.a COST KEY EXECUTIVE COMPENSATION CATEGORIZED

COST KEY EXECUTIVE COMPENSATION CATEGORIZED

2014 2015 2016 2017 2018
Key Executive Compensation
Salary 1,965,098 2,651,553 3,299,136 3,445,096 3,540,000
Bonus 182,607 516,979 290,759 506,650 387,660
Annual Other Income 0 0 0 0 0
Restricted Stock Award 9,805,560 13,706,282 17,210,130 17,128,727 18,897,605
Securities Option 0 0 0 0 0
LTIP Payout 0 0 0 0 0
Non-equity compensation 0 0 0 0 0
Other compensation 302,733 401,075 539,461 554,188 574,825
Total 12,287,863 17,319,745 21,561,342 21,924,799 23,803,010

Facts:

  • The key executive compensation classified into the following:
    • Salary $3.540 million
    • Bonus $388 thousand
    • Restricted stock award $18.9 million
    • Other compensation $575 thousand

Explanation:

  • Basic salary represents 15 percent of the total key executive compensation.
  • Bonus represents 2 percent of the total key executive compensation.
  • Restricted stock award represents 79 percent of the total key executive compensation.
  • Other compensation is 2 percent of the total key executive compensation.

 

6. COST LOBBYING AND CONTRIBUTIONS

COST LOBBYING AND CONTRIBUTIONS - 2019

2019 USD
Lobbying 210,000
Contributions 104,168
Total 314,168

Facts:

  • Lobbying in 2019 was $210 thousand.
  • Contributions in 2019 was $104.2 thousand.
  • Total lobbying and contributions in 2019 was $314 thousand.

Explanation:

  • Lobbying represents 67 percent of the total lobbying and contributions in 2019.
  • Contributions represents 33 percent of the total lobbying and contributions in 2019.

COST TOTAL CONTRIBUTIONS BY PARTY RECIPIENT

Democrats Republicans Total
1990 1,100 1,000 2,100
1992 6,800 12,950 19,750
1994 123,700 4,300 128,000
1996 42,600 5,600 48,200
1998 81,800 1,000 82,800
2000 192,500 9,300 201,800
2002 71,500 2,500 74,000
2004 276,503 5,500 472,003
2006 184,300 6,000 207,070
2008 314,900 8,300 325,420
2010 126,000 20,200 146,200
2012 404,000 22,900 551,998
2014 117,200 1,700 143,800
2016 524,120 19,100 545,544
2018 297,300 30,600 340,346
2020 90,161 7,200 104,168
TOTAL 2,854,484 158,150 3,012,634

Facts:

  • The total lobbying and contributions for Democrats and Republicans were:
    • 1990 $2,100
    • 1992 $19,750
    • 1994 $128,000
    • 1996 $48,200
    • 1998 $82,800
    • 2000 $201,800
    • 2002 $74,000
    • 2004 $472,003
    • 2006 $207,070
    • 2008 $325,420
    • 2010 $146,200
    • 2012 $551,998
    • 2014 $143,800
    • 2016 $545,544
    • 2018 $340,346
    • 2020 $104,168

Explanation:

Costco is spending lobbying and contributions since 1990 and onwards to the present date as seen above. The Federal Election Commission released the data for the current election cycle on October 16, 2019.

TOTAL CONTRIBUTIONS BY SOURCE OF FUNDS

COST TOTAL CONTRIBUTIONS BY SOURCE OF FUNDS

Period Individuals Soft Indivs
1990 104,168
1992 318,821 11,025
1994 543,194 2,100
1996 118,800 25,000
1998 426,836 125,000
2000 146,195 0
2002 323,420 0
2004 207,070 0
2006 282,003 0
2008 69,000 5,000
2010 201,450 250
2012 74,750 8,000
2014 48,181 0
2016 27,975 100,000
2018 19,700 0
2020 2,100 0
Totals 2,913,663 276,375

Facts:

  • The total contributions by source of funds was:
    • Individuals $2,913,663
    • Soft Indivs   $276,375
    • Overall total $3,190,038

Explanation:

The election cycles shown above in the table actually represent two-year period, example in 2014 election cycle runs from January 1, 2013 to December 31, 2014. 

 

7. COST FINANCIAL STRENGTH

COST FINANCIAL STRENGTH

DATA:

Working capital 248,000,000
Total assets 45,400,000,000
Sales 152,703,000,000
EBIT 4,737,000,000
Market value of equity 134,188,000,000
Book value of total liabilities 30,157,000,000
Retained earnings 10,258,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.01 1.20 0.01
B – Retained Earnings / Total Assets 0.23 1.40 0.32
C – EBIT / Total Assets 0.10 3.30 0.34
D – Market Value of Equity / Book Value of Total Liabilities 4.45 0.60 2.67
E – Sales / Total Assets 3.36 1.0 3.36
Z-Score 6.70


Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation

Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

The calculated Z-Score of Costco was 6.70. In Dr. Edward Altman grading scale of 3.0 plus indicates that the company will not declare bankruptcy. The company is far from bankruptcy and investors should not be worried about buying the stocks. It means that the company is financially healthy.

This measurement categorized the profitability or return on investment, liquidity, leverage and the efficiency in operating.

 

CITATION

https://www.costco.com/

https://www.sec.gov/cgi-bin/browse-edgar?CIK=COST&owner=exclude&action=getcompany&Find=Search

https://www.opensecrets.org/orgs/summary.php?id=D000000703
Researched and written by Criselda 

Twitter: criseldarome

 

Ayala Land Inc (ALI) Extended Graph Analysis

November 4th, 2019 Posted by Extended Analysis No Comment yet

About the Company

ayalaland

Ayala Land Inc (ALI) is a real estate company that is based in the Philippines. ALI was organized in 1988 as an independent subsidiary of Ayala Corporation. The company started its initial public offering in July 1991 in which its Class B common shares were listed in Manila and Makati Stock Exchanges. The Securities and Exchange Commission approved the declassification of the company’s Common Class A and Common Class B shares into common shares on September 12, 1997.

The company is servicing residential developments, shopping centers, hotels and resorts, offices, construction, property management and strategic investment. 

 

Ayala Land Inc (ALI) Extended Graph Analysis

 

1. ALI CASH FLOWS

ALI CASH FLOWS

2014 2015 2016 2017 2018 2019
Operating Cash Flow 36,010,000,000 20,182,000,000 33,040,000,000 25,700,000,000 11,768,000,000 -15,886,000,000
Net cash used for investing activities -5,151,000,000 -4,889,000,000 -5,781,000,000 -3,537,000,000 -298,000,000 1,262,000,000
Net cash provided by (used for) financing activities 1,621,000,000 1,912,000,000 2,658,000,000 980,000,000 -626,000,000 524,000,000
Capital expenditure -3,251,000,000 -6,839,000,000 -3,722,000,000 -2,326,000,000 -2,843,000,000 -3,220,000,000
Free cash flow 32,759,000,000 13,342,000,000 29,318,000,000 23,374,000,000 8,925,000,000 -19,105,870,000
Working Capital 30,188,000,000 20,071,000,000 22,809,000,000 33,938,000,000 62,045,000,000 62,045,000,000

Facts:

  • Operating cash flow was -PhP15.886 billion in 2019 trailing twelve months.
  • Net cash used for investing activities was PhP1.262 billion in 2019 trailing twelve months.
  • Net cash provided by (used for) financing activities was PhP524 million in 2019 trailing twelve months.
  • Capital expenditure was -PhP3.220 billion in 2019 trailing twelve months.
  • Free cash flow was -PhP19.106 billion in 2019 trailing twelve months.
  • Working capital was PhP 62.045 billion in 2019 trailing twelve months.

Explanation:

  • Operating cash flow was negative due to other working capital which is accounts and notes receivable trade in significant amount.
  • Net cash provided by investing activities were investment in property, plant and equipment and purchases of investments.
  • Net cash provided by (used for) financing activities were debt issued and repayment, dividends paid.
  • Capital expenditure was investment in property, plant and equipment.
  • Free cash flows were erratic in movement in the last five years and it has a negative FCF due to negative operating cash flows in 2019 trailing twelve months.
  • Working capital has a growth of 106 percent in five years, although the movement was erratic.

Interpretation

The company has a positive cash flows except in 2019 trailing twelve months were it suffered negative due to changes in working capital which affected the free cash flow.

 

2. ALI BALANCE SHEET

ALI BALANCE SHEET

2014 2015 2016 2017 2018 2019
Cash and cash equivalent 28,677,282,000 19,087,390,000 20,904,330,000 20,998,089,000 23,996,570,000 23,996,570,000
Total current assets 165,630,000,000 166,200,000,000 211,010,000,000 218,560,000,000 302,830,000,000 302,830,000,000
Total non-current assets 223,310,000,000 276,140,000,000 325,420,000,000 355,430,000,000 365,990,000,000 365,990,000,000
Total assets 388,944,463,000 442,341,800,000 536,432,995,000 573,992,334,000 668,820,482,000 668,820,482,000
Short-term debt 21,369,215,000 19,293,910,000 29,431,461,000 24,217,125,000 37,651,890,000 37,651,890,000
Total current liabilities 135,450,000,000 146,132,855,000 188,203,171,000 184,623,237,000 240,784,527,000 240,784,527,000
Long-term debt 103,296,454,000 111,702,201,000 130,369,877,000 150,168,631,000 149,446,949,000 149,446,949,000
Total liabilities 266,949,005,000 292,516,389,000 363,749,808,000 381,728,976,000 448,599,285,000 448,599,285,000
Retained Earnings 66,478,250,000 77,951,761,000 91,798,555,000 109,976,450,000 132,090,020,000 132,090,020,000
Total stockholders’ equity 121,995,458,000 149,825,411,000 172,683,187,000 192,263,358,000 220,221,197,000 220,221,197,000

Facts:

  • Cash and cash equivalent was PhP23.997 billion in 2018, 2019 trailing twelve months.
  • Current assets were PhP 303.830 billion in 2018, 2019 trailing twelve months.
  • Non-current assets were PhP365.990 billion in 2018, 2019 trailing twelve months.
  • Total assets were PhP668.820 billion in 2018, 2019 trailing twelve months.
  • Short-term debt was PhP 37.652 billion in 2018, 2019 trailing twelve months.
  • Current liabilities were PhP240.785 billion in 2018, 2019 trailing twelve months.
  • Long-term debt was PhP149.447 billion in 2018, 2019 trailing twelve months.
  • Total liabilities were PhP448.599 billion in 2018, 2019 trailing twelve months.
  • Retained earnings were PhP132.090 billion in 2018, 2019 trailing twelve months.
  • Total stockholders equity was PhP 220.221 billion in 2018, 2019 trailing twelve months.

Explanation:

  • Current assets has grown 83 percent in five years.
  • Non-current assets has grown  64 percent in five years.
  • Total assets has a growth of 72 percent in five years.
  • Short-term debt represents 8 percent of the total liabilities.
  • Current liabilities represents 50.01 percent of the total liabilities.
  • Non-current liabilities represents 49.99 percent of the total liabilities.
  • Long-term debt represents 31 percent of the total liabilities.
  • Total liabilities represents 72 percent of the total liabilities and equity.
  • Retained earnings grows 99 percent in five years.
  • Retained earnings represents 60 percent of the total equity.
  • Stockholders equity represents 33 percent of the total liabilities and equity.
  • Equity has a growth of 81 percent in five years.

Interpretation

The company’s total assets and equity were increasing year-over-year in the last five years. Moreover, the retained earnings were increasing too year-over-year at an average rate of 15 percent. 

 

3.  ALI FINANCIAL RATIOS

ALI FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset Turnover (avg) 0.25 0.24 0.24 0.25 0.26 0.26
Return on Asset (ROA) % 4.14 4.24 4.27 4.55 4.70 4.78
Return on Equity (ROE) % 14.51 14.65 14.86 16.12 16.61 16.97
Financial Leverage (avg) 3.64 3.31 3.63 3.47 3.60 3.50
Return on Invested Capital % 7.00 7.18 7.63 9.44 9.84 9.59
Interest Coverage 5.59 5.45 5.70 5.91 6.06 5.83
Net Margin % 16.63 17.51 17.76 18.22 17.90 18.58
Earnings per Share PhP 1.05 1.20 1.43 1.71 1.98 2.08
Dividends PhP 0.41 0.41 0.47 0.48 0.50 0.51

Facts:

  • Asset turnover was averaging 0.26 in 2019 trailing twelve months.
  • Return on assets was 4.78 percent in 2019 trailing twelve months.
  • Return on equity was 16.97 percent in 2019 trailing twelve months.
  • Financial leverage was averaging 3.50 in 2019 trailing twelve months.
  • Return on invested capital was 9.59 percent in 2019 trailing twelve months.
  • Interest coverage was 5.83 in 2019 trailing twelve months.
  • Net margin was 18.58 percent in 2019 trailing twelve months.
  • Earnings per share was PhP2.08 in 2019 trailing twelve months.
  • Dividends was PhP0.51 in 2019 trailing twelve months.

Explanation:

  • Asset turnover indicates that for every Peso in asset, the company generates only 26 centavos of sales, which is not very efficient.
  • Return on assets indicates that every Peso invested in asset, it generates PhP 0.47 of net income.
  • Return on equity indicates that for every Peso invested in equity, it generates PhP 0.16 centavos in profit.
  • Financial leverage indicates that for every Peso in equity, the company had 3.50 pesos in total assets. In other terms, the other 2 pesos and 50 centavos was borrowed. The ratio of 4 or more tells us that the company starts to be at risk.
  • Return on invested capital tells us that for every Php 1 invested in capital the company yielded a PhP 0.096 return.
  • Interest coverage indicates that the company is earning enough for payment of its  current interest and some extra earnings left to pay for principal.
  • Net margin was averaging 17.77 percent of sales in the last five years. This is the percent of income produced after deducting all expenses including interest and taxes from sales.
  • Earnings per share means that each shareholder will receive PhP 2.08 for each share of stock if the company distributed income..
  • The company’s dividends was stable in the last five years at average 0.46. 
  • The dividend declared in 2019 trailing twelve months was PhP 0.51, meaning each shareholder will receive the same amount for each share invested in the company’s equity as their reward.

Interpretation

The company has a good financial ratios except for asset turnover which is not very efficient. Moreover, financial leverage tells us that the company can be at risk. The management has maintained a record of making regular dividend payments to its shareholders. 

 

4. ALI INCOME AND MARKET

ALI INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Revenue 89,027,534,000 100,660,792,000 117,700,488,000 138,507,775,000 162,996,894,000 165,752,894,000
Operating Income 24,048,387,000 29,214,954,000 34,245,707,000 43,714,104,000 53,070,919,000 55,178,919,000
Net Income 14,802,642,000 17,630,275,000 20,908,011,000 25,304,965,000 29,240,880,000 30,859,709,000
EBITDA 34,042,375,000 39,052,117,000 45,490,190,000 50,900,886,000 60,447,416,000 64,033,416,000
Market Capitalization 478,219,000,000 506,265,000,000 470,806,000,000 656,733,000,000 598,236,000,000 728,644,000,000
Intrinsic Value 782,224,821,480 788,087,616,944 669,674,546,995 1,194,071,123,075 1,195,333,380,218 1,436,283,382,660

Facts:

  • Revenue was PhP 165.753 billion in 2019 trailing twelve months.
  • Operating income was PhP 55.179 billion in 2019 trailing twelve months.
  • Net income was PhP 30.860 billion in 2019 trailing twelve months.
  • EBITDA was PhP 64.033 in 2019 trailing twelve months.
  • Market capitalization was Php 728.644 billion in 2019 trailing twelve months.