Monthly Archives: January, 2020

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

 

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