Thursday, November 17, 2016

Is Fraser Centrepoint Ltd still the best?

Update 17 Nov 2016: Please note that as per Scorecard comparison below, Amara Holdings Ltd should deserved a "yellow cell" for having the lowest Last 12 Months PE. Thus, this will basically change the Fraser Centrepoint Ltd from 5 yellow cells to 4 yellow cells - Which Meant the company is no longer the BEST! Nevertheless, its Last 12 Months PE is still the 2nd lowest. 


If you remember my last in-depth analysis post on Fraser Centrepoint Ltd, you will know that I did that with a comparison with 4 other companies.

After Fraser Centrepoint Ltd released their 4th Quarter results and announced another 6.2 cents of final dividend, I decided to do another update on this company. However, this time, I added Wheelock Properties Ltd and Amara Holdings Ltd into the comparison mix.

The table below shows the comparison of my Enhanced Triple S Scorecard criteria across 7 different companies - Capitaland Ltd, Fraser Centrepoint Ltd, UIC Ltd, OUE Ltd, Far East Orchard Ltd, Wheelock Properties Ltd and Amara Holdings Ltd:

Click on it!
Yellow - Best Among 7 Companies
Green - Worse Among 7 Companies
Before I start explaining, it is important to address on the dividend yield of Far East Orchard Ltd. It actually much higher as it give out 6 cents per year. However, I believe they gave them out in scrip dividend, thus my scorecard did not register them as "dividend" per se.

I do not have a preference if my dividend comes in scrip or cash, but if its in scrip, it will dilute the shares and I deem it as a negative if I STILL DO NOT HOLD ANY OF THEM. Thus, Far East Orchard Ltd was punished for that.

Back to the main question, is Fraser Centrepoint Ltd still the best?

It does have 5 yellow cells across all the criteria, which is the highest number of yellow cells among the 7 companies.

Nevertheless, in order to provide a more balance view, it is important to note that Fraser Centrepoint Ltd is still significantly leveraged, with very low Net Asset Value as well as a negative price to free cashflow ratio.

But I also do notice a drop in liabilities and debt. In addition, Fraser Centrepoint Ltd has managed to achieve positive free cash flow 2 years in a row! Furthermore, other than those criteria related to balance sheet, Fraser Centrepoint Ltd did score quite well for other criteria as well.

There are also 2 other companies, which is on my radar - OUE Ltd and Wheelock Properties Ltd.

An interesting observation is that Fraser Centrepoint Ltd, OUE Ltd and Wheelock Properties Ltd, ultimate shareholder is a non-Singaporean Company.

Finally, I look forward to you sharing your comments and views on Fraser Centrepoint Ltd or the other 7 companies, if you have any!

Current Price: $1.515 as of 15 Nov 2016.

Please do your own due diligence before you invest in this stock.

Do note the author is vested in this stock/company at $1.490  

For those who are interested to understand and find out more about the calculations shown above based on the Enhanced Triple S Scorecard with the Dividend Scorecard Portion, you can come for the 4th Sharing Session with T.U.B! If you are interested to attend, do not hesitate to contact me directly.

Oh... and do remember, please like our Facebook page - T.U.B Investing.

2 comments:

  1. Thanks, good post and updated.

    I used to do this too in the past but have not really update them, since the focus is not so much on developers these days in my portfolio but good info there!!

    ReplyDelete
    Replies
    1. Hi B,

      Thanks for commenting and reading.

      Just want to make sure I am on the right track too. Enhanced my view on fraser cpt when I did this comparison.

      Regards,
      TUB

      Delete