Financial Data
Year Earnings / Shr Revenue Net Profit
(cents) (mil) (% margin)
2013 7.2 405.924 8.79
2012 6.05 328.654 9.22
Other Data (as at 30 Jun 2013)
Debt:
- Current : 9.521 mil
- Long-term : 19.95 mil
- Total : 29.476 mil
Shares Issued : 501,000,000
NAV : 21.99c
Dividend (2012) : 0.6c
(2013) : 0.7c
Div payment date: Dec
Biz Model
Civmec is an engineering company that is involved in the following sectors:
- Oil and Gas sector
- Mining and other services
Opinion
Civmec is an engineering company based in Australia. As an investor, we may need to take note of the currency exchange between Australia and Singapore. Secondly, as it is a engineering company, revenues comes in from projects and services jobs which are not recurring and thus making it harder to have stable earnings. Currently it is trading over 80c on the Singapore Exchange on 20 Sept 2013, in my opinion is very expensive. With only 2 yrs of facts, it is difficult to make an estimation of how much eps Civmec will make for FY 2014. But my estimation will be around 7-9c. Dividend yield is only 1.1% which is even lower than SG 10yr bond of 2.50% currently.
Conclusion
Using estimates of 7-9c for FY 2014, coupled with NAV will give us a NAV estimated of 30c. I think this stock has to come down in order for me to buy in. If i were to really buy in, only below 30c will i consider with a dividend yield of 4% to take the risk of owning this stock.
DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.
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