Monday, June 22, 2020

How expensive is Cirtek Holdings (TECH) fundamentally based on their March 2020 financial report?


Cirtek Holdings Philippines Corporation (TECH) was registered with SEC on February 10, 2011 and is the holding company of Critek Electronics Corporation and Cirtek Electronics International Corporation. 

Through these subsidiaries, the Company primarily provides service/turnkey solutions including wafer probing, wafer back grinding, assembly, and packaging and final testing of semiconductor devices; and offers manufacturing solutions for value-added, highly integrated radio frequency, microwave and millimeter wave technology products.



As of June 19, 2020, TECH was last traded at 8.86PHP or 0.18USD per share since their financial statement is in terms of USD. This stocks is recommended by Philstocks to trade. Its market price dropped by at least 60% from its 52 week high, largely because of the COVID19 pandemic. But is it now fundamentally cheap to buy? 


In terms of P/E, TECH recorded a trailing P/E of 18, meaning, for every 1USD earning last 2019, investors of this company are willing or are paying 18USD. With 18 P/E and with no or zero growth rate (change in EPS) from 2018 to 2019, the company trailing PEG ratio would he considered overvalued.



In terms of price to book value per share, the current market price is currently 9 times higher than the book value as recorded in their March 2020 financial report, meaning, the company is perceived to be just 9 times higher compared to the real worth of the company. In terms of this parameter, I say, it’s also overvalued.


Is this a good stock to accumulate fundamentally in this pandemic period? Nope, this stocks is technically being traded.



Technically, the MACD indicator seems to suggest that it’s in bullish mode. And that signal line seems to indicate a not too soon crossover for selling signal, which suggest trading. 


Disclaimer: Trade or invest at your own risk.

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