How Expensive is East West Banking Corp (EW) now fundamentally based on their June 2017 Quarterly Report?

East West Banking Corporation (EW) was registered with the Securities and Exchange Commission on March 22, 1993. The Company was granted authority by the Bangko Sentral ng Pilipinas (BSP) to operate as a commercial bank in 1994 and commenced operations on July 8 of the same year.

EW's principal banking products and services include deposit-taking, loan and trade finance, treasury, trust services, credit cards, cash management and custodial services. The Company offers the financial services to consumer and corporate clients. On January 25, 2012, EW obtained from BSP the approval to operate as a universal bank.

On May 6, 2016, EastWest and Standard Chartered Bank Philippines (SCB PH) entered into an agreement for SCB PH’s retail business. Under the agreement, the credit cards, personal loans, wealth management and deposits of SCB in the Philippines will be migrated to EastWest.

The Company’s current subsidiaries are East West Rural Bank, Inc., East West Insurance Brokerage, Inc., East West Leasing and Finance Corporation, Price Solution Philippines, Inc., Assurance Solutions Insurance Agency, and East West Ageas Life Insurance Corporation. EW is also part of a joint venture – East West Ageas Life Insurance Corporation, a life insurance firm formed with Ageas Insurance International N.V.

As of December 31, 2016, EW has a network of 378 branches and 580 automated teller machines, majority of which are located within Metro Manila. 

As of Sept 22, 2017, EW was last traded price at 31.6Php. This is just 1.3 times higher compared to their recorded book value as according to their June 2017 quarterly report. Most value investor, they may find the market price to be still in a bargain. 

In terms of P/E, the company recorded a trailing P/E of 13.92 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 13.92Php. With a P/E value and with a growth rate of 57.64% from 2015 to 2016, the company trailing PEG ratio would only be 0.24 which means, investors of this company are paying 13.92Php for every 1PHP income last 2016 for a growth rate of 57.64%. In terms of this parameter, a value investor may found this share to be undervalued since the PEG ratio is less than 1.

In terms of income, the first 6 months net income attributable to parents this year increases by 60% in comparison to last year first 6months net income.

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How Expensive is Jollibee (JFC) now fundamentally based on their June 2017 Quarterly Report?

Jollibee Foods Corporation (JFC) was incorporated on January 11, 1978. JFC and its subsidiaries and affiliates are involved primarily in the development, operation and franchising of quick service restaurants (QSR) under the trade names "Jollibee", "Chowking", "Greenwich", "Red Ribbon", "Yong He King", "Hong Zhuang Yuan", "Mang Inasal", "Burger King", "Highlands Coffee", "Pho24", "12 Hotpot", "Dunkin' Donuts", and "Smashburger".

On November 18, 2016, JFC disclosed that it entered into an agreement through its subsidiary, JSF Investments Pte. Ltd. (JSF), with its JV partner, Viet Thai International Joint Stock Company (VTI), to make its JV company, Superfoods Group, a public company by listing it in the Vietnam Stock Exchange with an initial public offering (IPO) on or before July 2019. As part of the agreement to the IPO, the ownership of Superfoods Group will be adjusted with JFC, through JSF, owning 60% of the JV while VTI will own 40%.

Aside from the subsidiaries and affiliates which own and operate the JFC’s QSR trade names, the Company's other subsidiaries include Freemont Foods Corporation, a wholly-owned subsidiary which owns and operates Jollibee stores in Visayas and Mindanao, and Grandworth Resources Corporation, a real estate company which owns or leases some of the properties used as store sites.

By the end of 2016, there were 978 Jollibee stores nationwide, of which 483 were franchised and 495 are Company-owned. In international operations, Jollibee had 167 stores with 35 stores in the US, 84 in Vietnam, 26 in the Middle East, 14 in Brunei, four in Singapore, three in Hong Kong, and one in Canada.

As of Sept 19, 2017, JFC was last traded price at 244Php. This is 7 times higher compared to their recorded book value as according to their June 2017 quarterly report. A value investor may found this quite overvalued. But, perhaps because of its popularity, investors of this share perceived that the net worth of the company should be 7 times more than its current value. 

In terms of P/E, the company recorded a trailing P/E of 42.4 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 42.4PHP. With a P/E value and with a growth rate of 24.4% from 2015 to 2016, the company trailing PEG ratio would also be 1.7 which means, investors of this company are paying 40.24PHP for every 1PHP income last 2016 for a growth rate of 24.4%. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equivalent to the growth rate- increase in EPS.

In terms of income, the first 6 months net income attributable to parents this year increases by 14% in comparison to last year first 6months net income.

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How Expensive is Double Dragon (DD) now fundamentally based on their June 2017 Quarterly Report?

DoubleDragon Properties Corp. (DD), formerly Injap Land Corporation, was established on December 9, 2009 to primarily engage in the business of real estate development and other real estate-related business ventures. The Company started commercial operations in November 2010. DD was originally 100%-owned by Injap Investments, Inc. (IJI), a holding company owned by the Sia family. In June 2012, DD became a joint venture between IJI and Honeystar Holdings Corporation, the holding company of the Tan and Ang families. The Securities and Exchange Commission approved the Company's change in name to its present one on August 1, 2012.

DD and its subsidiaries own, lease, and enter into joint venture agreements covering several tracts of land for community malls, office, residential and other types of developments. As of December 31, 2016, DD has eight subsidiaries including DoubleDragon Sales Corp., DoubleDragon Property Management Corp., DD Happyhomes Residential Centers, Inc., DD-Meridian Park Development Corp., CityMall Commercial Centers Inc., Piccadilly Circus Landing Inc., Iloilo-Guimaras Ferry Terminal Corp. and Hotel of Asia, Inc.

At present, the Company has acquired a total of 54 sites for its community malls. Ten (10) CityMalls have commenced commercial operations while 29 are under construction, of which majority will be opening in 2017. Meanwhile, 15 will be completed and majority thereof will be operational by 2018.

The Company’s core projects include CityMall, DD Meridian Park, Jollibee Tower, The SkySuites Tower, Dragon8 Mall, and W.H. Taft Residences. DD also has several projects in Iloilo, namely, Injap Tower, The Uptown Place, People’s Condominium, FirstHomes Subdivision, and HappyHomes – Mandurriao.

As of Sept 15, 2017, DD was last traded price at 40Php, even though the market price dropped, it's still 8.7 times higher compared to the recorded book on their June 2017 quarterly report. A value investor may found this quite overvalued. On the other hand, investors of this share perceived that the net worth of the company should be 8.7 times more than its current value, perhaps because of the potential earning in the future, the trust on the company management or any other else like, effective marketing approach to attract investors.

In terms of P/E, the company recorded a trailing P/E of 154 meaning, for every 1Php earning last 2016, investors of this company are willing or is paying 154Php which, may be expensive. With a 154 P/E and with a growth rate of 4% from 2015 to 2016, the company trailing PEG ratio would be 38.4 which means, investors of this company are paying 154Php for every 1Php income last 2016 for a 4% growth rate from 2015 to 2016. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equivalent to the growth rate- increase in EPS.

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Which one is more expensive to buy fundamentally, PGOLD or RRHI if based on their June 2017 quarterly report?

RRHI and PGOLD are PSE companies under the servicing sector. No doubt that RRHI market price is higher than PGOLD which would give an initial impression that the latter is more expensive to buy than PGOLD but, it's not always the case, one would need to compare their financial statement to know. First, let's compare RRHI price to book value to PGOLD price to book value.

RRHI June 2017 Quarterly Report

PGOLD June 2017 Quarterly Report

As of Sept 14, 2017, PGOLD was last traded price at 51.65Php, this is 3.1 times higher compared to their recorded book value, meaning, the company is perceived to be worth 3.1 times higher than what the company is really worth as according to their June 2017 quarterly report. On the other hand, RRHI on the same trading day was last traded price at 95.95Php, this is 2.7 times higher compared to their recorded book value last June 2017 quarterly report. In terms of Price to book value, it would appear that RRHI is more fundamentally cheaper to buy than PGOLD.

In terms of P/E, PGOLD trailing P/E would be 25.8 meaning, for every 1Php income last 2016, investors of this company are willing to pay 25.8Php. On the other hand, RRHI on the same trading day has a P/E value of 27.4. It may seem like in terms of P/E, RRHI is a bit more expensive than PGOLD. But, if we look at the PEG ratio, PGOLD growth rate from 2015 to 2016 was 10.5% which would give a PEG ratio of 2.46 while RRHI growth rate from the same period was 11.5% which would give a PEG ratio of 2.39.

Now it is said that a PEG ratio of above 1 is considered overvalue and vice versa nonetheless, both companies may have a PEG ratio of above 1 but in between the two, RRHI seems like cheaper to buy compared to PGOLD considering their growth rate from 2015 to 2016.

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Know Your Stocks - How Expensive is MEG fundamentally based on their June 2017 Quarterly Report?

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. The Company has three primary business segments: real estate sales of residential developments; leasing of office space, primarily to BPO enterprises, and retail space; and management of hotel operations.

Since its incorporation in 1989, the Company and its subsidiaries and associates have launched approximately 560 residential buildings, office buildings and hotels consisting in aggregate of more than 12 million square meters of floor area.

As of December 31, 2016, the Company's subsidiaries and associates include Empire East Land Holdings, Inc.; Global-Estate Resorts, Inc.; Suntrust Properties, Inc.; Richmonde Hotel Group International Limited; Bonifacio West Development Corporation; Suntrust Home Developers, Inc.; Maple Grove Land, Inc.; San Vivente Coast, Inc.; and Palm Tree Holdings & Development Corporation.

As of Sept 11, 2017, MEG was last traded price at 5.30Php, this is 1.29 times higher compared to their recorded book value as of June 2017 quarterly report. In regard to this parameter, a higher market price in comparison to company's net worth could mean the share is over valued but, it could also mean that the investors perceived the company to be worth more than its net worth due to its potential earning.

In terms of P/E, the company recorded a trailing P/E of 15.14 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 15.14Php. With the P/E value and with growth rate of 12.90% from 2015 to 2016, the company trailing PEG ratio would be 1.17 which is more than 1.0 meaning, investors of this company are paying 15.14Php for every 1PHP income last 2016 even if the company grows a bit less than the P/E or 12.90% from 2015 to 2016. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equivalent to the growth rate- increase in EPS.

In terms of income, the first 6 months net income attributable to parents increased by 10.8% in comparison to last year first 6 months net income

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Know Your Stocks - How Expensive is Cosco Capital. (COSCO) fundamentally based on their June 2017 Quarterly Report?

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 unauthorised 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 8th of September 2017, COSCO was last traded price at 8.1PHP. This is 23.3% lower compared to their recorded book value as of June 2017 quarterly report. In terms of this parameter, it's possibly undervalued since the company net worth is more than the market price.

In terms of P/E, the company recorded a trailing P/E of 12.2 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 12.2PHP only. With a 12.2 P/E and with a growth rate (change in EPS) of 6.4% from 2015 to 2016, the company trailing PEG ratio would be 1.9 which is more than 1.0 meaning, investors of this company are paying 12.2PHP for every 1PHP income last 2016 even if the company grows only by 6.4% from 2015 to 2016.

In terms of income, the first 6 months net income attributable to parents increases by 5.4% in comparison to last year first 6 months net income.

Disclaimer: Trade or invest at your own risk.