Warren Buffet states, ""It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
Putting those words into practice, I have recently taken to reading some investment books to get a better sense of how to better time my market entry into certain stocks i'm looking at. Of course, I must caveat that nothing is 100%, so do take this post as nothing more than an opinion.
So with that, here are my findings on Chip Eng Seng vs CapitaLand as at 17 May 2015,
From the ratios above, it does seem to say that Chip Eng Seng does have the upper hand at this point. However, Chip Eng Seng loses out to CapitaLand from a debt perspective, with its Debt to Equity Ratio above 1. Nonetheless, interest coverage does seem healthy, suggesting that its debt should not be of major concern as long as its net profit grows at a faster pace than interest expense.
As this is purely analysis from a ratios perspective, i am looking to hear your thoughts on the qualitative side of things as well.
Next up: Jansen's insights on the workers' SG dormitories landscape, stay tuned for more interesting stuff ;)
Putting those words into practice, I have recently taken to reading some investment books to get a better sense of how to better time my market entry into certain stocks i'm looking at. Of course, I must caveat that nothing is 100%, so do take this post as nothing more than an opinion.
So with that, here are my findings on Chip Eng Seng vs CapitaLand as at 17 May 2015,
| Stock Name | Capitaland | Chip Eng Seng |
| Current Share Price | $3.50 | $0.84 |
| 3 year eps growth average | 5.64% | 82.40% |
| 5 year eps growth average | -2.26% | 54.46% |
| PE | 15.02 | 3.89 |
| PEG Ratio | 8.89 | 0.06 |
| Yield | 0.03 | 0.07 |
| Price to Book Ratio | 0.91 | 0.72 |
| Dividend Adjusted PEG Ratio ((Price ÷ Earnings Per Share) ÷ (Annual Earnings Per Share Growth + Dividend Yield)) | 3.52 | 0.05 |
| Debt to Equity Ratio | 0.57 | 1.73 |
| Interest Coverage Ratio (Net Profit Before Interest & Income tax / Interest Expense) | 7.20 | 73.69 |
| Recommendation | Underweight (Sell) |
Overweight (Buy) |
From the ratios above, it does seem to say that Chip Eng Seng does have the upper hand at this point. However, Chip Eng Seng loses out to CapitaLand from a debt perspective, with its Debt to Equity Ratio above 1. Nonetheless, interest coverage does seem healthy, suggesting that its debt should not be of major concern as long as its net profit grows at a faster pace than interest expense.
As this is purely analysis from a ratios perspective, i am looking to hear your thoughts on the qualitative side of things as well.
Next up: Jansen's insights on the workers' SG dormitories landscape, stay tuned for more interesting stuff ;)
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