Sime Darby

Only available on StudyMode
  • Download(s) : 186
  • Published : November 1, 2012
Open Document
Text Preview
Page 1 of 6

Fundamental Analysis for SIME DARBY BHD
Company Name: Stock Code (Bursa): Bloomberg: Industry: Sub-Sector: Company Description: Date of Analysis: Financial Year: SIME DARBY BHD Board: Main Board SIME FBMKLCI: TRUE SIME:MK Reuters: SIME.KL TRADING SERVICES OIL PALM/RUBBER AND OTH CROP PRODUCTION PLANTATION; PROP; MOTORS; INDUSTRIAL; ENERGY & UTILITIES. 19-Sep-12 2011 30/6/2011 Price: 9.79 Stock Grade: Emerging Investment Grade Profitability Profitability 10 ROI 8 ROI Liquidity 6 Efficiency 4 Risks 2 0 Potential Growth

Buy & Hold Returns

Potential Growth

65 75 90 50 105 105 Buy & Hold Returns 25 Liquidity

51.80759 40.02273 62.4099 36.10128 85.8969 57.48956 18.75

7.97 5.34 6.93 7.22 8.18 5.48 7.5

Risks

Efficiency

Future growth drivers and Risks: http://announcements.bursamalaysia.com/edms/edmswebh.nsf/all/FF95B42CEC4045D948257A7A0062 DF67/$File/Press%20release.pdf

Due-Diligence
All figures in millions of Ringgit Malaysia except per share values and ratio Measures 2002 @ 2002/6/30 2003 @ 2003/6/30 2004 @ 2004/6/30 2005 @ 2005/6/30 2006 @ 2006/6/30 2007 @ 2007/6/30 2008 @ 2008/6/30 2009 @ 2009/6/30 2010 @ 2010/6/30 2011 @ 2011/6/30 Importane Rate Comments

Profitability Increasing Sales Revenue Increasing Net Income After Tax Increasing Gross Profit Margin (Preferably ≥ 40%) ROI Increasing high ROE (Preferably ≥ 15%) Increasing ROIC (Preferably ≥ 15%) Increasing CROIC (Preferably ≥ 15%) Liquidity Increasing Net Cash from Operations Increasing Free Cash Flow / Sales (Preferably ≥ 5%) Increasing Quick Ratio (Preferably ≥ 1) Short & declining Cash Conversion Cycle Efficiency Increasing Net Profit Margin (Preferably ≥ 10%) Increasing OCF/TA (Preferably ≥ 8%)

12,053 928 29.9%

13,718 945 30.4%

14,904 1,015 26.6%

18,646 933 24.4%

20,162 1,203 23.6%

20,735 1,597 23.3%

34,045 3,753 26.2%

31,014 2,341 23.0%

32,845 855 26.8%

41,859 3,847 25.7%

10.7% 8.0% 4.5%

10.2% 8.0% 5.2%

10.9% 8.0% 3.3%

10.0% 9.0% 3.6%

12.7% 7.0% 5.2%

15.8% 8.0% 7.1%

16.2% 12.0% 9.1%

10.7% 9.0% -1.1%

3.6% 5.0% 6.8%

15.2% 13.0% 6.5%

647 3.5% 1.09 62

930 4.3% 1.41 66

652 2.6% 1.39 65

737 2.3% 1.12 62

1,154 3.4% 1.23 67

1,644 4.8% 1.27 65

3,936 7.2% 1.38 63

937 -1.0% 1.00 91

3,570 5.9% 1.00 65

3,393 4.9% 1.05 65

10.0% 5.2%

9.0% 6.3%

9.0% 4.2%

7.0% 4.5%

8.0% 6.6%

10.0% 8.4%

15.0% 10.9%

10.0% 2.6%

5.0% 9.5%

13.0% 7.9%

Risks Declining Debt/Equity Ratio (Preferably < 1) Operating Income Variability Sales Variability Increasing Altman Z Score (Preferably ≥ 2.6) Declining Beneish Score (Preferably < -2.22) Potential Growth Increasing Sustainable Growth Rate (Preferably ≥ 8%) Increasing Expected EBIT Growth N/A (Preferably ≥ 8%) Quality of Sales Revenue Growth (Preferably ≥ 80%) N/A

0.15 1,081 12,053 5.73

0.27 1,225 13,718 5.50 -2.83

0.28 1,389 14,904 6.45 -2.90

0.34 1,406 18,646 5.13 -2.95

0.38 1,206 20,162 5.42 -2.86

0.29 1,569 20,735 7.13 -3.00

0.22 4,339 34,045 5.83 -1.99

0.26 3,151 31,014 7.02 -2.89

0.37 2,081 32,845 5.80 -2.84

0.29 5,483 41,859 6.38 -2.86

3.5%

2.9% 16.4% 93.5% 85.8% 28.7% 53.4% 59.1% 56.9%

3.7% 4.1% 2008: 2002-2011: 2008: 2002-2011: 2008: 2002-2011:

2.3% 3.1% 77.2% 2009: 91.1% 52.4% 2009: 58.2% 76.6% 2009: 45.6% 6.4% 5-Y:

4.4% 9.9%

7.9% 14.9% 74.6% 2010: 59.2% 2010: 14.9% 2010:

2.9% 19.4%

5.0% -5.0% 69.4% 2011: 17.0% 2011: 21.6% 2011:

0.6% 6.6%

7.7% 13.6% 73.3% 30.0% 14.0%

2007: 2005-2011: Quality of EBIT Growth (Preferably 2007: ≥ 80%) 2005-2011: Quality of Operating Cash Flow 2007: Growth (Preferably ≥ 80%) 2005-2011: Buy & Hold Returns Shareholder Wealth Creation Full: (Preferably ≥ 8%)

5.7% 10-Y:

-1.0% 3-Y:

11.5%

Investment Strategy
Position Strategy Position Lump Sum + Top Up Strategy: Buy Criteria Averaging Down Method: Dollar Cost/Value Averaging

Criteria
1. The current quarter's EPS is up more than...
tracking img