One of the more promising REIT out there.
P/E ratio of 6.53 with a dividend yield of 10.7%
You can feel safe with your capital at the current ratio of 14.6 derived from current assets divided by total debt. The company can afford to service their debt levels 14 times over.
It should not be surprising to say that their net profit is among the highest at 97.05%
It has only been a couple of years into their operation and they are creating an impressive performance for all value investing investors out there.
Although they were in the negative income zone in 2009, that was because they were still starting their operations. It quickly went from -1.01 in 2009 to 11.89 in 2010 and an impressive 108.4 in 2011
| Year | |||
| 2011 | 2010 | 2009 | |
| Net Income | 108.4 | 11.89 | -1.01 |
| Asset | 992.87 | 448.44 | 284.31 |
| ROA | 10.92% | 2.65% | -0.36% |
| Year | |||
| 2011 | 2010 | 2009 | |
| Current Assets | 959.67 | 448.44 | 284.31 |
| Current Liabilities | 65.71 | 7.56 | 2.9 |
| Current Ratio | 14.60 | 59.32 | 98.04 |
| Year | |||
| 2011 | 2010 | 2009 | |
| Total Debt | 31.36 | 172.84 | 25.58 |
| Equity | 927.16 | 268.04 | 255.83 |
| Debt/Equity Ratio | 0.03 | 0.64 | 0.10 |
If we are to use Discounted Cash Flow method to determine their intrinsic value we will arrive at
At least 25% lower than its intrinsic value at the growth rate of a measly 5% per year. Obviously, the company can grow by more than 5%. We are just using 5% in order to be very conservative about it. If you are to project a 10% of growth rate, the results would be even more impressive.
| Year | ||||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
| EPS | 1.40 | 1.54 | 1.69 | 1.86 | 2.05 | 2.25 | 2.48 | 2.73 | 3.00 | 3.30 |
| DF | 0.95 | 0.91 | 0.86 | 0.82 | 0.78 | 0.75 | 0.71 | 0.68 | 0.64 | 0.61 |
| DV | 1.33 | 1.40 | 1.46 | 1.53 | 1.61 | 1.68 | 1.76 | 1.85 | 1.93 | 2.03 |
| Total Discounted EPS | 1.658532 | |||||||||
| divided by 10 yrs | ||||||||||
The company has very conservative financing with high returns on equity and capital. The management is also top notch and they are facing bright prospects. Their competitive advantages might not be as clear cut as technological sectors do or retail giants but if their management behaves in the same way as before, their competitive advantages can be inferred as sustainable indeed.