ALAM (5115) – Fundamental Analysis (24 Dec 2014)

ALAM (5115) – Fundamental Analysis (24 Dec 2014)


ALAM Analysis:-

Excel – http://1drv.ms/1Hy57ui

Notes – http://tinyurl.com/q8zkjcv

My View:-

Valuation:
       
Absolute EY%
           
Trailing:              
FY13 (EPS: 0.094) – Fair value 1.13 (Fair Value Uncertainty: MEDIUM)               
R4Q (EPS: 0.072) – Fair value 0.88 (Fair Value Uncertainty: MEDIUM)
           
Forward:
               
FY14 (EPS: 0.087) – Fair value 1.05 (Fair Value Uncertainty: MEDIUM)               
FY15 (EPS: 0.098) – Fair value 1.19 (Fair Value Uncertainty: MEDIUM)           
EPS applied to reach the current stock price (0.68): 0.056
       
Absolute PE
           
FY13 (EPS: 0.094) – Fair value 0.9 (Fair Value Uncertainty: MEDIUM)          
R4Q (EPS: 0.072) – Fair value 0.7 (Fair Value Uncertainty: HIGH)  
Earnings of ALAM have been highly erratic and unpredictable.   

ALAM is highly leveraged.
   
Lower vessel utilisation rates will be lower in light of the volatile/weak oil price environment.
   
I will give it a pass.

Latest Financial – Q3 2015 Financial Report (20 Nov 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1800009

At the time of writing, I did not own shares of ALAM.

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