Liquidity ratios
Debt ratios
I think the company had done a fairly good job in maintaining liquidity though it should be noted that the ratios are trending down. I would prefer to see the current ratio at around 1.5 and quick ratio above 1.
Debt ratios
Gearing has increased over time but was still kept at comfortable level. It would be good to see the interest coverage ratio going higher, say 7 times.
Efficiency Ratios
Fairly consistent over the years
Return on Equity (using DuPont Model)
Personally, I do not view E&E as a growth company. Profit margin has undergone erosion during the period in review as the PCB industry has grown increasingly competitive. Asset turnover was affected by rapid expansion with below-expection performance of new plants. The impetus for increasing ROE can only come from higher equity multiplier, which essentially means higher liabilities for the company.
3 comments:
Hi Dancerene,
Are you Ms Teh? The Business Times Writer?
If You are, we are so excited!
Seriously, i think your book on "Show me the Money" is fantastic.
Why we suspect you are Ms Teh is because you wrote about Elec & Eltek in your book Show me the money volume 2.And its not a really well researched stock.
Do you have positions in it?
We will add you in our blog!
Cheers
SGDividends Team
Hi SGDividends,
I am very honoured to be mistaken as The Business Times writer, Ms Teh. Her financial insights are indeed well-respected in the local investment community.
However, here's only a value stock investor wannabe. =)
Yes, I do have positions in E&E.
Hi Dancerene,
Ok. Another mistaken identity.
=) Hope to read more of your posts!
Post a Comment