About the Company

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

	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

	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

	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

	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

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