VICOM cashflow
A look at its 2004 and 2005 financial statement shows that VICOM is managing its cashflow efficiently. Its business can consistently generate operating cashflow after spending whatever they require on capital expenditure and investment in new ventures or additional of investment to its existing subsidiary.
In 2003, they attempt to secure a loan to fund their investment in an associate. We promptly see that in 2004 they managed to return most of these loans to reduce its debt level.
|
2003
|
2004
|
2005
|
|
| Payout Ratio |
36.52%
|
49.60%
|
63.31%
|
| Profit Growth |
–
|
-5.82%
|
16.33%
|
| Cash out of total assets |
15.84%
|
11.46%
|
12.96%
|
| operating cashflow (times) |
1.15
|
1.11
|
1.14
|
| gearing (times) |
0.508
|
0.332
|
0.224
|
| fixed asset turnover (times) |
0.88
|
0.86
|
0.89
|
| profit margin |
17.06%
|
16.38%
|
17.81%
|
| ROE |
16.73%
|
14.53%
|
14.87%
|
| EPS growth |
–
|
-7.01%
|
15.93%
|
| PE |
8.56
|
10.28
|
8.82
|
| PTB |
1.43
|
1.49
|
1.31
|
| Earnings yield |
11.69%
|
9.72%
|
11.33%
|
| Div yield |
5%
|
6.58%
|
6.08%
|
| Free Cashflow yield |
15.29%
|
9.74%
|
10.22%
|
| conservative free cashflow yield |
–
|
9.10%
|
10.98%
|
Its conservative free cashflow yield is in the region of 10%.however its div is closer to an average of 6%. This couple with a moderate profit margin and ROE makes this a worthwhile investment to look at.
However, the question is whether they can grow their sales further. To grow further, the management would have to explore whether they have fully tapped the singapore mkt, or they can venture overseas to increase their sales.
Related posts:
- Net Profit, EBITDA, Operating Cashflow and Free Cashflow in Dividend Investing
- VICOM
- Free Cashflow Yield incorporated into Dividend Stock Tracker
- M1 Full Year Results 2010: Paying out more than free cashflow
- Reliable cashflow valuation.
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Vicom is a very good stock but I wish the price can be cheaper, so there is more value in this investment.