How expensive is MPI fundamentally based on their March 2020 financial report?

Metro Pacific Investments Corporation (MPI) was incorporated on March 20, 2006 as an investment holding company. The Company is organized into the following segments based on services and products: water; toll roads; power generation and distribution; healthcare services; light rail and logistics.  

The Company's subsidiaries are Manila Electric Company; Global Business Power Corporation; Metro Pacific Tollways Corporation; Maynilad Water Holding Company, Inc.; Metro Pacific Hospital Holdings, Inc.; Metro Pacific Light Rail Corporation; and MetroPac Logistics Company, Inc.

As of December 31, 2018, MPI's investments outside the Philippines include an effective ownership of 29.5% in Don Muang Tollway Public Ltd, a Thai toll road operator, and 44.9% in CII Bridges and Roads Investment Joint Stock Company, a toll road company located in Ho Chi Minh City in Vietnam and 75.9% in PT Nusantara Infrastructure Tbk, a listed Indonesian infrastructure company with two main businesses: toll roads and telecommunication towers and small businesses in water, ports and energy.

As of June 23, 2020, MPI was last traded at 3.82PHP per share. This stocks was of the top gainers from yesterday’s trading, this is one of the PSE index company. Its market price dropped by 27% from its 52 week high, largely because of the COVID19 pandemic. But is it now fundamentally cheap to buy? 

In terms of P/E, MPI recorded a trailing P/E of 5.03, meaning, for every 1Php earning last 2019, investors of this company are willing or are paying 5.03Php. With 5.03 P/E and with 68.8% growth rate (change in EPS) from 2018 to 2019, the company trailing PEG ratio would just be 0.07 which would he considered undervalued. 

In terms of price to book value, the current market price is currently 35.3% lower than the book value as recorded in their March 2020 financial report, meaning, the company is perceived to be 35.3% lower compared to the real worth of the company. In terms of this parameter, I say, it’s also undervalued.

However, the income for the first 3 months this year dropped by 46%, expectedly due to COVID19.

Is this a good stock to accumulate fundamentally in this pandemic period? The parameters above seems to suggest yes.

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

Disclaimer: Trade or invest at your own risk.