How Expensive is BDO Unibank Inc. (BDO) now fundamentally based on their June 2017 Quarterly Report?

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Source: PSE edge

How Expensive is SM Prime Holdings, Inc. (SMPH) now fundamentally based on their June 2017 Quarterly Report?

SM Prime Holdings, Inc. (SMPH) was incorporated on January 6, 1994 to acquire and develop real estate, conduct and maintain commercial shopping centers including shopping center spaces for rent, amusement centers, movie or cinema theaters, and to construct and manage buildings such as condominium, apartments, hotels, restaurants, stores and other structures for mixed use purposes. The Company has now four business units, namely, malls, residential, commercial, and hotels and convention centers.

As of December 31, 2016, SMPH has 60 malls in the Philippines and seven shopping malls in China. The malls in China are located in the cities of Xiamen, Jinjiang, Chengdu, Zibo, Chongqing, Tianjin, and Suzhou. The Company has 33 residential projects, 31 of which are in Metro Manila and two in Tagaytay. SMPH also owns Sky Ranch, an amusement park that was first launched in Tagaytay, adjacent to the Taal Vista Hotel, and later replicated within SM City Pampanga in the City of San Fernando.

Among the Company's subsidiaries are SM Development Corporation; Costa del Hamilo, Inc.; Highlands Prime, Inc.; Tagaytay Resort and Development Corporation; SM Arena Complex Corporation; SM Hotels and Conventions Corp.; and SM Land (China) Limited.

As of Oct 13, 2017, SMPH was last traded price at 36.5Php. This is 4.38 times higher compared to the recorded book value as according to their June 2017 quarterly report. In terms of this parameter, a value investor may find the market price expensive already but on the others hand, the investors may be seeing something that leads them to believe that the company should be worth 4.38 times higher than what it's really worth perhaps, they see potential earning in the future or other else.

In terms of P/E, the company recorded a trailing P/E of 43.98 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 43.98Php. In terms of P/E, it seems like it's also overvalued but, how does the P/E value paired with the company growth rate? With a drop of growth rate from 2015 to 2016, the company trailing PEG ratio would be negative which means, investors of this company are paying 43.98Php for every 1PHP income last 2016 even if the company losses from 2015 to 2016. A value investor may find this share to be overvalued given the fundamental parameters as highlighted above.

The first 6 months net income attributable to parent this year increased by 14.2% in comparison to last year first 6months net income.

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How Expensive is Harbor Star Shipping Services, Inc. (TUGS) now fundamentally based on their June 2017 Quarterly Report?

Harbor Star Shipping Services, Inc. (TUGS) was registered with the Securities and Exchange Commission (SEC) on July 5, 1988 under the name Seatows, Inc. The Company's primary purpose is to engage in ocean towage, commerce and navigation in the carriage of goods and passengers by water upon the oceans, seas, sounds, lakes, rivers, canals, bays, harbors, and other waterways between the various ports of the Philippines and between such ports and other ports in the world.

The Company's service lines include harbor assistance, lighterage, towing, ship salvage, marine construction, repair and maintenance works, and other marine services. On August 11, 2015, TUGS secured the approval of the SEC to expand its business scope to include international marine commerce; manning, recruitment, ship and crew management; operate liner/feeder vessels and logistics operations; invest in, develop, manage and/or operate in domestic and international shipyards, ports and terminals; construction and rehabilitation of marine facilities; and real estate development.

TUGS has two subsidiaries, Harbor Star Subic Corp., which offers marine-related ancillary services such as harbor assistance, towage, lighterage, oil spill response and underwater marine services; and Peak Flag Sdn Bhd, a company incorporated in Malaysia to provide tugboat harbor assist/marine support services at the North and Kuantan Ports.

As of December 31, 2016, TUGS has operations in 15 base ports all over the country. The major ports that TUGS services include the Manila International Container Terminal, Bataan, Batangas, Cagayan de Oro, and Davao. The Company maintains and manages a fleet of 40 tugboats, five barges, a cargo vessel, an oil spill response vessel, and an anchor handling tug supply vessel.

As of Oct 13, 2017, TUGS was last traded price at 2.3Php. This is just 0.89 times lower compared to the recorded book value as according to their June 2017 quarterly report. In terms of this parameter, a value investor may find the market price to be quite a bargain.

In terms of P/E, the company recorded a trailing P/E of 12.78 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 12.78Php. In terms of P/E, it seems like it's also in the range of not expensive yet now, let us take a look further on the company PEG ratio. With the P/E value and with a growth rate of just 38.46% from 2015 to 2016, the company trailing PEG ratio would only be 0.33 which means, investors of this company are paying 12.78Php for every 1PHP income last 2016 for a growth rate of 38.46%. It seems like, in terms of this parameter, a value investor may also find this share undervalued since the PEG ratio is less than 1.

You must be wondering, if the fundamental is good then why does the trend seems bearish? Well, I cannot really be certain, my best guess is because of its income. The first 6 months net income attributable to parent this year drop by 34.46% in comparison to last year first 6months net income. If the income trend continues to drop until the end of the year, the growth rate in comparison to 2016 would be negative hence, the PEG ratio next year will not be that attractive.

Disclaimer: Trade or invest at your own risk.

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