Fundamental Analysis on Amara Holdings

Amara Holding listed on 10 July 2000 on Mainboard,
                                      15 Aug 1997 on Sesdaq

Financial Data

FY          EPS          REV      Net Income    Free Cash        Net % Operating
             (cents)       (mil)           (mil)               (mil)                      Margin          
2012      5.10         90.3         29.426             15.226                32.60                  
2011      5.84         62.1         33.673             11.443                54.23                  
2010      2.83         61.688     16.353             10.346                26.51                  
2009      1.95         102.679   11.255             22.373                10.96                  
2008      2.08         71.429     11.985             27.026                16.78                  

Ave        3.56         77.64                                                          28.216
(5yr)  

Other Data

Cash Bal : 11.486 mil
Debt (current): 12.704 mil
         (LT)     : 201.919 mil

Shares issued: 579936000

NAV: 50.24c

Div Yields : 1.1%
Div Payout Mth: June

Div Payout (2013 / 2012 / 2011 / 2010 / 2009) : 0.6 / 0.6 / 0.5 / 0.5 / 0.5
(cents)

Opinion

I chance upon this stock while doing my daily scanning for trading. Amara Holding is from the hospitality sector and have been listed on the Singapore Exchanges for more than 10 yrs. Thus i have carry out research on the fundamentals of this company. Looking at its 5 yrs data the company revenue whipsawed as there is no consistency in earnings. Operating margins remains healthy. However, its debt outstanding is a case for concern and most probably will be looking for financing for the next 12 - 24 mths.

Conclusion

With its book value at 50.24c (TTM), its estimated FY 2013 will probably be around 2.2 - 2.6 cents. Given that it is trading at 56c, this counter is now trading at 10% premium. The PE is at 11 which look fairly valued.

Should you have this stock, it would be wise just to HOLD.

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