How Expensive is Jollibee Food Corporation (JFC)? Updated 3rd Quarter

Jollibee Foods Corporation (JFC) was incorporated on January 11, 1978. JFC's principal business is the development, operation, and franchising of quick-service restaurants under the trade name "Jollibee". In the Philippines, JFC also has, as subsidiaries, Fresh N' Famous Foods, Inc., which develops, operates and franchises quick-service restaurants under the trade names "Chowking" and "Greenwich"; Red Ribbon Bakeshop, Inc., which develops, operates and franchises restaurants under the "Red Ribbon" trade name; Mang Inasal Phils., Inc. (MIPI), which develops, operates and franchises restaurants under the "Mang Inasal" trade name; and Perf Restaurants, Inc., which franchises restaurants under the "Burger King" trademark in the Philippines.

JFC also has subsidiaries and affiliates overseas which develop and operate its international brands, "Yonghe King", "Hong Zhuang Yuan", "San Pin Wang" brands under the SuperFoods Group, "12 Hotpot", "Jinja" and "Dunkin' Donuts".

On October 13, 2015, the Company's wholly-owned subsidiary, Bee Good! Inc., entered into an agreement with Smashburger Master LLC to acquire 40% of "Smashburger", a fast casual better burger brand in the US. In April 2016, JFC acquired the remaining 30% share in MIPI, making the latter wholly-owned by the Company.

By the end of 2015, there were 916 Jollibee stores nationwide, of which 459 were franchised and 457 are Company-owned. In international operations, Jollibee had 139 stores with 32 stores in the US, 72 in Vietnam, 13 in Brunei, one in Hong Kong, two in Singapore, and 19 in the Middle East.

As of Dec 22, 2016, JFC was last traded price at PHP 185.50. This is 5.95 times higher compare to their recorded book value as according to their September 2016 financial report. This is expensive for most value investor since, a PBV of more than 3 is considered expensive.

In terms of P/E, the company recorded a trailing P/E of 40.24 meaning, for every 1PHP earning last 2015, investors of this company are willing or is paying 40.24PHP which is quite expensive. With a 40.24 P/E and with a negative growth since EPS dropped from 5.03 to 4.61 from 2014 to 2015 respectively, the company trailing PEG ratio would also be negative which means, investors of this company are paying 40.24PHP for every 1PHP income last 2015 even though, the company grows negatively from 2014 to 2015.

In terms of income, the first 9 months net income attributable to parents this year increases by 13.75% in comparison to last year first 9 months net income.

Disclaimer: Trade or invest at your own risk.

How Expensive is Cosco Capital, Inc. (Cosco)? 3rd Quarter Updated

Cosco Capital Inc. (COSCO), formerly Alcorn Gold Resources Corporation, was originally incorporated on January 19, 1988 with the primary purpose of engaging in exploration, development, and production of oil and gas, and metallic and non-metallic reserves in partnership with other companies or in its individual capacity. On January 13, 2000, the Securities and Exchange Commission (SEC) approved the amendment of the Company's primary purpose from an oil and mineral exploration and development corporation into a holding company.

On April 12 2013, Lucio L. Co. Group (LLCG) and COSCO executed a Deed of Agreement in payment for the subscription wherein the LLCG shall subscribe to the unissued unauthorized capital stock of the Company. Ten (10) days later, the SEC approved the change in corporate name to the present one.

COSCO, as a holding company, currently has a portfolio comprised of interests in retail, real estate and property leasing, liquor distribution, oil and mining, and specialty retail. The Company's retail interests include Puregold Price Club, Inc. and S&R Membership Shopping. COSCO's real estate and property leasing interests include Ellimac Prime Holdings, Inc., Fertuna Holding Corporation, Patagonia Holdings Corp., Nation Realty, Inc., 118 Holdings, Inc., NE Pacific Shopping Centers Corporation, and Pure Petroleum Corp. The interests of the Company in Liquor distribution include Montosco Inc., Meritus Prime Distributions, Inc., and Premier Wine and Spirits, Inc. The Company's oil and mining interests include Alcorn Petroleum and Minerals Corporation. In specialty retail, COSCO's interests include Liquigaz Philippine Corporation and Office Warehouse, Inc.

 

As of 19th of December 2016, COSCO was last traded price at PHP 8.53. This is 13.75% lower compare to their recorded book value as of their September 2016 financial report. Therefore, in terms of price to book value, it's not expensive yet since the book value is higher than the market price. 

In terms of P/E, the company recorded a trailing P/E of 13.76 meaning, for every 1PHP earning last 2015, investors of this company are willing or is paying 13.76PHP only. With a 13.76 P/E and with a growth rate (change in EPS) of 14.81% from 2014 to 2015, the company trailing PEG ratio would be 0.93 which is less than 1.0 meaning, investors of this company are paying only 13.76PHP for every 1PHP income last 2015 when the company grows by 14.81% from 2014 to 2015. Ideally, a fair valued stocks has a PEG ratio of 1.0 meaning, the P/E is equal to the growth rate, in the case of COSCO its less than one therefore, possibly undervalued.

In terms of income, the first 9 months net income after tax this year increases by 9.33% in comparison to last year first 9 months net income.

Disclaimer: Trade or invest at your own risk.

How Expensive is Cebu Air, Inc. (CEB) fundamentally? 3rd Quarter Update

Cebu Air, Inc. (CEB), which is an airline company that operates under the trade name "Cebu Pacific Air," was incorporated on August 26, 1988. The Company was granted a 40-year legislative franchise to operate international and domestic air transport services in 1991. CEB commenced its scheduled passenger operations in 1996 with its first domestic flight from Manila to Cebu. International operations began in 2001 with flights from Manila to Hong Kong.

CEB pioneered the "low fare, great value" strategy in the local aviation industry. In 2005, the Company adopted the low-cost carrier (LCC) business model, whose strategy is to offer affordable air service to passengers.

On March 20, 2014, CEB acquired 100% ownership of Tiger Airways Philippines, including a 40% stake in Roar Aviation II Pte. Ltd., a wholly-owned subsidiary of Tiger Airways Holdings Limited.

CEB currently operates a fleet of 55 aircraft which comprises of eight Airbus A319, 33 Airbus A320, eight ATR 72-500, and six Airbus A330 aircrafts. It operates its Airbus aircraft on both domestic and international routes.

As of December 31, 2015, the Group operates an extensive route network serving 56 domestic routes and 41 international routes with a total of 2,685 scheduled weekly flights. It operates from
seven hubs located in Pasay City, Metro Manila; Lapu-Lapu City, Cebu; Clark, Pampanga; Davao City, Davao del Sur; Ilo-ilo City, regional center of western Visayas region; and Kalibo, Aklan.

As of December 13, 2016, CEB was last traded price at PHP 90.00. This is only 1.77 higher compare to their recorded book value as according to their September 2016 financial report. I guess it's not yet expensive since, for most value investor a PBV of more than 3 is already considered expensive.

In terms of P/E, the company recorded a trailing P/E of 12.43 meaning, for every 1PHP earning last 2015, investors of this company are willing or is paying 12.43Php to which is not expensive yet. With a P/E of 12.43 and a growth rate of 413.48% since EPS increases from 1.41 to 7.24 from 2014 to 2015 respectively, the company trailing PEG ratio would only be 0.03, this is way less than one therefore, not expensive. 

In terms of income, the first 9 months net income attributable to parents this year increases by 99.60% in comparison to last year first 9 months net income.

With the company current market price, the company seems to be sound fundamentally.

Disclaimer: Trade or invest at your own risk.

How Expensive is Megaworld Corp. (MEG) Fundamentally? 3rd Quarter Update

Megaworld Corporation was incorporated on August 24, 1989 to engage in the development of large scale, mixed-used planned communities or townships that integrate residential, commercial, leisure and entertainment components. The Company is also engaged in other property-related activities such as project design, construction oversight and property management. On August 19, 1999, the Company changed its corporate name to the present one to coincide with its conversion from a purely real estate company into a holding company, although MEG continues to focus on its core competence in real estate development.

MEG's real estate portfolio includes residential condominium units, subdivision lots and townhouses, condominium-hotel projects as well as office projects and retail spaces. Since its incorporation in 1989, the Company and its subsidiaries and associates have launched approximately 371 residential buildings, office buildings and hotels consisting in aggregate of more than 6,786,146 square meters of floor area.

As of December 31, 2015, the Company's subsidiaries and associates include Empire East Land Holdings, Inc.; Global-Estate Resorts, Inc.; Suntrust Properties, Inc.; Paseo Center Building Administration, Inc.; Richmonde Hotel Group International Limited; Bonifacio West Development Corporation; Suntrust Home Developers, Inc.; and Palm Tree Holdings & Development Corporation.

As of December 12, 2016, MEG was last traded price at PHP 3.58. This is 7.73% lower compare to their recorded book value as according to their September 2016 financial report. I guess it's not yet expensive since the market price is lower than its book value.

In terms of P/E, the company recorded a trailing P/E of 11.19 meaning, for every 1PHP earning last 2015, investors of this company are willing or is paying 11.19Php to which is not expensive yet. But, with a negative growth rate since EPS dropped from 0.66 to 0.31 from 2014 to 2015 respectively, the company trailing PEG ratio would also be negative which means, investors of this company are paying 11.19Php for every 1Php income last 2015 even though the company grows negatively from 2014 to 2015.

In terms of income, the first 9 months net income attributable to parents this year increases by 11% in comparison to last year first 9 months net income.

Disclaimer: Trade or invest at your own risk.