Monthly Archives: December, 2019

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

 

Note:

Research Reports can be found under the company tab.