You must predict the future, yet the future is not reliably predictable.

The difficulty of predicting the future even a few years ahead. 

An unresolvable contradiction exists: to perform present value analysis, you must predict the future, yet the future is not reliably predictable. 

The miserable failure in 1990 of highly leveraged companies such as Southland Corporation and Interco, Inc., to meet their own allegedly reasonable projections made just a few years earlier-in both cases underperforming by more than 50 percent-highlights the difficulty of predicting the future even a few years ahead. 

Investors are often overly optimistic in their assessment of the future. 

A good example of this is the common response to corporate write-offs. This accounting practice enables a company at its sole discretion to clean house, instantaneously ridding itself of underperforming assets, uncollectible receivables, bad loans, and the costs incurred in any corporate restructuring accompanying the write-off. 

Typically such moves are enthusiastically greeted by Wall Street analysts and investors alike; post-write-off the company generally reports a higher return on equity and better profit margins. Such improved results are then projected into the future, justifying a higher stock market valuation. 

Investors, however, should not so generously allow the slate to be wiped clean. When historical mistakes are erased, it is too easy to view the past as error free. It is then only a small additional step to project this error-free past forward into the future, making the improbable forecast that no currently profitable operation will go sour and that no poor investments will ever again be made. 

How do value investors deal with the analytical necessity to predict the unpredictable? 

The only answer is conservatism. 

Since all projections are subject to error, optimistic ones tend to place investors on a precarious limb. Virtually everything must go right, or losses may be sustained. 

Conservative forecasts can be more easily met or even exceeded. 

Investors are well advised to make only conservative projections and then invest only at a substantial discount from the valuations derived therefrom.

Many factors can derail any business forecast.

Forecasting future growth is considerably imprecise

Forecasting sales or profits many years into the future is considerably more imprecise, and a great many factors can derail any business forecast. 

There are many investors who make decisions solely on the basis of their own forecasts of future growth. After all, the faster the earnings or cash flow of a business is growing, the greater that business’s present value. 

Difficulties confronting growth-oriented investors

Yet several difficulties confront growth-oriented investors. 

• First, such investors frequently demonstrate higher confidence in their ability to predict the future than is warranted. 
• Second, for fast-growing businesses even small differences in one’s estimate of annual growth rates can have a tremendous impact on valuation.  
• Moreover, with so many investors attempting to buy stock in growth companies, the prices of the consensus choices may reach levels unsupported by fundamentals. 
• Investors may at times be lured into making overly optimistic projections based on temporarily robust results, thereby causing them to overpay for mediocre businesses. 
• When growth is anticipated and therefore already discounted in securities prices, shortfalls will disappoint investors and result in share price declines.

When a good business can become a bad investment

 As Warren Buffett has said, “For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.” 

Growth investors tend to oversimplify growth into a single number

Another difficulty with investing based on growth is that while investors tend to oversimplify growth into a single number, growth is, in fact, comprised of numerous moving parts which vary in their predictability. 

Sources of earnings growth

For any particular business, for example, earnings growth can stem from increased unit sales related 

• to predictable increases in the general population, 
• to increased usage of a product by consumers, 
• to increased market share, 
• to greater penetration of a product into the population, or 
• to price increases. 

Specifically, a brewer might expect to sell more beer as the drinking-age population grows but would aspire to selling more beer per capita as well. Budweiser would hope to increase market share relative to Miller. The brewing industry might wish to convert whiskey drinkers into beer drinkers or reach the abstemious segment of the population with a brand of nonalcoholic beer. Over time companies would seek to increase price to the extent that it would be expected to result in increased profits. 

Some of these sources of earnings growth are more predictable than others. 

• Growth tied to population increases is considerably more certain than growth stemming from changes in consumer behavior, such as the conversion of whiskey drinkers to beer. 
• The reaction of customers to price increases is always uncertain. 

On the whole it is far easier to identify the possible sources of growth for a business than to forecast how much growth will actually materialize and how it will affect profits. 

Difficulty of Forecasting Future Cash Flow

Present-Value Analysis and the Difficulty of Forecasting Future Cash Flow 

When future cash flows are reasonably predictable and an appropriate discount rate can be chosen, NPV analysis is one of the most accurate and precise methods of valuation. 

Unfortunately future cash flows are usually uncertain, often highly so.  Moreover, the choice of a discount rate can be somewhat arbitrary. 

These factors together typically make present-value analysis an imprecise and difficult task. 

 

A perfect business that is simple to value: an annuity

A perfect business in terms of the simplicity of valuation would be an annuity; an annuity generates an annual stream of cash that either remains constant or grows at a steady rate every year. 

For real businesses, estimating its future cash flow is usually a guessing game

Real businesses, even the best ones, are unfortunately not annuities. 

Few businesses occupy impenetrable market niches and generate consistently high returns, and most are subject to intense competition. 

Small changes in either revenues or expenses cause far greater percentage changes in profits. The number of things that can go wrong greatly exceeds the number that can go right.

Although some businesses are more stable than others and therefore more predictable, estimating future cash flow for a business is usually a guessing game. 

A recurring theme is that the future is not predictable, except within fairly wide boundaries. 

Business uncertainty - the roles of management and investors

Responding to business uncertainty is the job of corporate management. 

However, controlling or preventing uncertainty is generally beyond management’s ability and should not be expected by investors.  

Three useful yardsticks of business value

 Business Valuation 

To be a value investor, you must buy at a discount from underlying value. 

Analyzing each potential value investment opportunity therefore begins with an assessment of business value. 

While a great many methods of business valuation exist, there are only three that I find useful. 

1.  NPV

The first is an analysis of going-concern value, known as net present value (NPV) analysis. NPV is the discounted value of all future cash flows that a business is expected to generate. 

[Using multiples.  A frequently used but flawed shortcut method of valuing a going concern is known as private-market value. This is an investor’s assessment of the price that a sophisticated businessperson would be willing to pay for a business. Investors using this shortcut, in effect, value businesses using the multiples paid when comparable businesses were previously bought and sold in their entirety. ]

2.  Liquidation value

The second method of business valuation analyzes liquidation value, the expected proceeds if a company were to be dismantled and the assets sold off. Breakup value, one variant of liquidation analysis, considers each of the components of a business at its highest valuation, whether as part of a going concern or not. 

3.  Stock market value

The third method of valuation, stock market value, is an estimate of the price at which a company, or its subsidiaries considered separately, would trade in the stock market. Less reliable than the other two, this method is only occasionally useful as a yardstick of value. 

Conclusions:

Each of these methods of valuation has strengths and weaknesses. 

None of them provides accurate values all the time. 

Unfortunately no better methods of valuation exist. 

Investors have no choice but to consider the values generated by each of them; when they appreciably diverge, investors should generally err on the side of conservatism.

The concept of a range of value:

Businesses, unlike debt instruments, do not have contractual cash flows. As a result, they cannot be as precisely valued as bonds. 

In Security Analysis Benjamin Graham and David Dodd discussed the concept of a range of value:

The essential point is that security analysis does not seek to determine exactly what is the intrinsic value of a given security. It needs only to establish that 

• the value is adequate – e.g., to protect a bond or to justify a stock purchase – or 
• else that the value is considerably higher or considerably lower than the market price. 

For such purposes an indefinite and approximate measure of the intrinsic value may be sufficient.

Graham frequently performed a calculation known as net working capital per share, a back-of-the-envelope estimate of a company’s liquidation value. His use of this rough approximation was a tacit admission that he was often unable to ascertain a company’s value more precisely.

Benjamin Graham knew how hard it is to pinpoint the value of businesses and thus of equity securities that represent fractional ownership of those businesses.

A Range of Value

 A Range of Value

Businesses, unlike debt instruments, do not have contractual
cash flows. As a result, they cannot be as precisely valued as
bonds. 

Benjamin Graham knew how hard it is to pinpoint the
value of businesses and thus of equity securities that represent
fractional ownership of those businesses. In Security Analysis he
and David Dodd discussed the concept of a range of value:

The essential point is that security analysis does not seek to
determine exactly what is the intrinsic value of a given security.
It needs only to establish that the value is adequate – e.g., to
protect a bond or to justify a stock purchase – or else that the
value is considerably higher or considerably lower than the
market price. For such purposes an indefinite and approximate

measure of the intrinsic value may be sufficient.

Indeed, Graham frequently performed a calculation known as
net working capital per share, a back-of-the-envelope estimate
of a company’s liquidation value. His use of this rough
approximation was a tacit admission that he was often unable
to ascertain a company’s value more precisely.

To illustrate the difficulty of accurate business valuation,
investors need only consider the wide range of Wall Street
estimates that typically are offered whenever a company is put
up for sale. 

In 1989, for example, Campeau Corporation
marketed Bloomingdales to prospective buyers; Harcourt Brace
Jovanovich, Inc., held an auction of its Sea World subsidiary;
and Hilton Hotels, Inc., offered itself for sale. In each case Wall
Street’s value estimates ranged widely, with the highest
estimate as much as twice the lowest figure. If expert analysts
with extensive information cannot gauge the value of high 

profile, well-regarded businesses with more certainty than this,
investors should not fool themselves into believing they are
capable of greater precision when buying marketable securities
based only on limited, publicly available information.

Markets exist because of differences of opinion among

investors. If securities could be valued precisely, there would be
many fewer differences of opinion; market prices would
fluctuate less frequently, and trading activity would diminish.
To fundamentally oriented investors, the value of a security to
the buyer must be greater than the price paid, and the value to
the seller must be less, or no transaction would take place. The
discrepancy between the buyer’s and the seller’s perceptions of
value can result from such factors as differences in assumptions
regarding the future, different intended uses for the asset, and
differences in the discount rates applied. Every asset being

bought and sold thus has a possible range of values bounded by
the value to the buyer and the value to the seller; the actual
transaction price will be somewhere in between.

In early 1991, for example, the junk bonds of Tonka
Corporation sold at steep discounts to par value, and the stock
sold for a few dollars per share. The company was offered for
sale by its investment bankers, and Hasbro, Inc., was evidently
willing to pay more for Tonka than any other buyer because of
economies that could be achieved in combining the two
operations. Tonka, in effect, provided appreciably higher cash
flows to Hasbro than it would have generated either as a 

standalone business or to most other buyers. There was a sharp
difference of opinion between the financial markets and Hasbro
regarding the value of Tonka, a disagreement that was resolved
with Hasbro’s acquisition of the company.

The Art of Business Valuation. BUSINESS VALUE IS IMPRECISIVELY KNOWABLE.

 

BUSINESS VALUE IS IMPRECISIVELY KNOWABLE

Many investors insist on affixing exact values to their investments, seeking precision in an imprecise world, but business value cannot be precisely determined. 

Reported book value, earnings, and cash flow are, after all, only the best guesses of accountants who follow a fairly strict set of standards and practices designed more to achieve conformity than to reflect economic value. 

Projected results are less precise still. 

You cannot appraise the value of your home to the nearest thousand dollars. Why would it be any easier to place a value on vast and complex businesses?

BUSINESS VALUE CHANGES OVER TIME.  REQUIRES CONTINUOUS REASSESSMENTS.

Not only is business value imprecisely knowable, it also changes over time, fluctuating with numerous macroeconomic, microeconomic, and market-related factors. So while investors at any given time cannot determine business value with precision, they must nevertheless almost continuously reassess their estimates of value in order to incorporate all known factors that could influence their appraisal.

Any attempt to value businesses with precision will yield values that are precisely inaccurate. The problem is that it is easy to confuse the capability to make precise forecasts with the ability to make accurate ones. 

Anyone with a simple, handheld calculator can perform net present value (NPV) and internal rate of return (IRR) calculations. 

• The NPV calculation provides a single-point value of an investment by discounting estimates of future cash flow back to the present. 
• IRR, using assumptions of future cash flow and price paid, is a calculation of the rate of return on an investment to as many decimal places as desired.

NPV AND IRR ARE ONLY AS ACCURATE AS THE CASH FLOW ASSUMPTIONS USED

The seeming precision provided by NPV and IRR calculations can give investors a false sense of certainty for they are really only as accurate as the cash flow assumptions that were used to derive them.

The advent of the computerized spreadsheet has exacerbated this problem, creating the illusion of extensive and thoughtful analysis, even for the most haphazard of efforts. Typically, investors place a great deal of importance on the output, even though they pay little attention to the assumptions. 

“Garbage in, garbage out” is an apt description of the process. 

NPV and IRR are wonderful at summarizing, in absolute and percentage terms, respectively, the returns for a given series of cash flows. 

When cash flows are contractually determined, as in the case of a bond, and when all payments are received when due, 

• IRR provides the precise rate of return to the investor while 
• NPV describes the value of the investment at a given discount rate. 

In the case of a bond, these calculations allow investors to quantify their returns under one set of assumptions, that is, that contractual payments are received when due. 

These tools, however, are of no use in determining the likelihood that investors will actually receive all contractual payments and, in fact, achieve the projected returns.

Dutch Lady

 Fiscal year is January-December. 

2021 2020 2019 2018 2017 5-year trend 

INCOME STATEMENT

All values MYR Millions.

Sales/Revenue 1,134 1,101 1,067 1,049 1,065 

Gross Income 400 357 405 416 401 

SG&A Expense 189 184 195 194 174

Depreciation & Amortization Expense 37 20 20 14 12

 Interest Expense 3 3 4 3 - 

Sale of Fixed Assets & Businesses 194  0.137  0.073 - - 

Pretax Income 285 98 138 171 158 

Net Income 248 73 103 129 118 

CASH FLOW STATEMENT

 All values MYR Thousands. 

Net Operating Cash Flow (16,259.0) 142,038.0 114,602.0 117,876.0 43,200.0 

Capital Expenditures (61,692.0) (93,228.0) (20,038.0) (34,278.0) (16,280.0) 

Free Cash Flow (70,181.0) 49,403.0 94,756.0 83,613.0 27,517.0 

 Cash Dividends Paid - Total (32,000.0) (51,200.0) (64,000.0) (128,000.0) (179,200.0) 

Sale of Fixed Assets & Businesses 194,001.0 137.0 73.0 - - 

BALANCE SHEET

 All values MYR Thousands. 

 Cash & Short Term Investments 118,300.0 55,605.0 61,532.0 32,109.0 61,339.0 

ST Debt & Current Portion LT Debt 8,487.0 19,598.0 17,358.0 15,172.0 - 

Long-Term Debt 6,652.0 3,590.0 340.0 - - 

Total Current Assets 482,151.0 288,435.0 314,460.0 279,549.0 286,781.0 

Total Current Liabilities 306,032.0 324,181.0 292,043.0 292,804.0 281,640.0

 Current Ratio 1.58 0.89 1.08 0.95 1.02

 Quick Ratio 1.05 0.42 0.61 0.51 0.61

 Cash Ratio 0.39 0.17 0.21 0.11 0.22

 Total Shareholders' Equity 382,580.0 166,580.0 144,417.0 105,459.0 104,010.0

 Retained Earnings 318,580.0 102,580.0 80,417.0 41,459.0 40,010.0

 Total Shareholders' Equity / Total Assets 54.56% 33.39% 32.56% 25.92% 26.40%

 Liabilities & Shareholders' Equity 701,232.0 498,845.0 443,594.0 406,899.0 394,006.0

Total Assets 701,232.0 498,845.0 443,594.0 406,899.0 394,006.0 

Return On Average Assets 41.33%

Average Growth Rates 

Dutch Lady Milk Industries Bhd 

Past Five Years Ending 12/31/2021 (Fiscal Year) 

Revenue +1.30%

 Net Income +22.13%

 Earnings Per Share +22.13% 

Capital Spending +55.79%

 Gross Margin +38.50%

 Cash Flow -71.01% 

 KEY STOCK DATA 

P/E Ratio (TTM) 7.74(12/28/22) 

EPS (TTM) RM3.91 

Market Cap RM1.93 B 

Shares Outstanding N/A 

Public Float 56.93 M 

Yield 1.65%(12/28/22) 

Latest Dividend RM0.25(12/13/22)

Understanding financially distressed and bankrupt companies.

Financially distressed and bankrupt securities are analytically complex and often illiquid.

The reorganization process is both tedious and highly uncertain. 

Although the number of variables is high in any type of investing, the issues that must be considered when investing in the securities of financially distressed or bankrupt companies are greater in number and in complexity. 

In addition to comparing price to value as one would for any investment, investors in financially distressed securities must consider, among other things, 

• - the effect of financial distress on business results; 
• - the availability of cash to meet upcoming debt-service requirements; and 
• - likely restructuring alternatives, including a detailed understanding of the different classes of securities and financial claims outstanding and who owns them. 

Similarly, investors in bankrupt securities must develop a thorough understanding of the 

• -  reorganization process in general as well as 
• -  the specifics of each situation being analyzed.

Financially Distressed and Bankrupt Businesses

Companies get into financial trouble for at least one of three reasons: 

• - operating problems, 
• - legal problems, and/or 
• - financial problems. 

A serious business deterioration can cause continuing operating losses and ultimately financial distress.

Unusually severe legal problems caused tremendous financial uncertainty for these companies, leading them ultimately to seek bankruptcy court protection. 

Financial distress sometimes results almost entirely from the burdens of excessive debt; many of the junk-bond issuers of the 1980s shared this experience.

Financial distress is typically characterized by a shortfall of cash to meet operating needs and scheduled debt-service obligations. 

• -  When a company runs short of cash, its near-term liabilities, such as commercial paper or bank debt, may not be refinanceable at maturity. 
• -  Suppliers, fearing that they may not be paid, curtail or cease shipments or demand cash on delivery, exacerbating the debtor’s woes. 
• -  Customers dependent on an ongoing business relationship may stop buying. 
• -  Employees may abandon ship for more secure or less stressful jobs.

Effect of financial distress vary from company to company

Since the effect of financial distress on business results can vary from company to company, investors must exercise considerable caution in analyzing distressed securities. 

The operations of 

• capital-intensive businesses are, over the long run, relatively immune from financial distress, while 
• those that depend on public trust, like financial institutions, or on image, like retailers, may be damaged irreversibly. 

For some businesses the decline in operating results is limited to the period of financial distress. 

• -  After a successful exchange offer, an injection of fresh capital, or a bankruptcy reorganization, these businesses recover to their historic levels of profitability. 
• -  Others, however, remain shadows of their former selves.  

The capital structure of a business also affects the degree to which operations are impacted by financial distress. 

• -  For debtors with most or all of their obligations at a holding company one or more levels removed from the company’s primary assets, the impact of financial distress can be minimal. Overleveraged holding companies, for example, can file for bankruptcy protection while their viable subsidiaries continue to operate unimpaired; Texaco entered bankruptcy while most of its subsidiaries did not file for court protection. 
• -  Companies that incur debt at the operating-subsidiary level may face greater dislocations.

More often bankrupt enterprise continues in business under protection for some to return to financial health

The popular media image of a bankrupt company is a rusting hulk of a factory viewed from beyond a padlocked gate. Although this is sometimes the unfortunate reality, far more often the bankrupt enterprise continues in business under court protection from its creditors. 

Indeed, while there may be a need to rebuild damaged relationships, a company that files for bankruptcy has usually reached rock bottom and in many cases soon begins to recover. 

• -  As soon as new lenders can be assured of their senior creditor position, debtor-in-possession financing becomes available, providing cash to meet payroll, to restock depleted inventories, and to give confidence both to customers and suppliers. 
• - Since postpetition suppliers to the debtor have a senior claim to unsecured prepetition creditors, most suppliers renew shipments. 
• -  As restocked inventories and increased confidence stimulate business and as deferred maintenance and delayed capital expenditures are undertaken, results may begin to improve. 
• - Cash usually starts to build (for a number of reasons). 
• -  When necessary, new management can be attracted by the prospect of a stable and improving business situation and by the lure of low-priced stock or options in the reorganized company. 

While Chapter 11 is not a panacea, bankruptcy can provide a sheltered opportunity for some troubled businesses to return to financial health.

PETRONAS DAGANGAN

 

Fiscal year is January-December. 

All values MYR Millions.

2021 2020 2019 2018 2017 5-year trend 

INCOME STATEMENT

Sales/Revenue 22,505 18,711 30,294 30,069 27,421 

Gross Income 2,566 2,271 3,213 2,851 3,013

 Gross Income Growth 13.03% -29.33% 12.70% -5.38% -

 Gross Profit Margin 11.40% - - - - 

Pretax Income 740 386 1,125 1,174 1,434

 Pretax Income Growth 91.35% -65.64% -4.14% -18.16% -

 Pretax Margin 3.29% - - - -

 Net Income 530 276 830 850 1,082

 Net Income Growth 91.96% -66.73% -2.39% -21.49% -

 Net Margin 2.35% - - - -

 

CASH FLOW STATEMENT

Net Income before Extraordinaries 741 386 1,129 1,177 1,438

 Funds from Operations 1,030 753 1,344 1,130 1,492

 Net Operating Cash Flow 258 434 2,531 176 1,213

 Net Operating Cash Flow Growth -40.57% -82.85% 1338.98% -85.50% -

 Net Operating Cash Flow / Sales 1.15% 2.32% 8.36% 0.59% 4.42%

 Capital Expenditures (374) (443) (460) (375) (59) 

Capital Expenditures / Sales -1.66% -2.37% -1.52% -1.25% -0.21% 

Free Cash Flow (116) (9) 2,071 (199) 1,154

 Free Cash Flow Growth -1168.71% -100.44% 1140.99% -117.24% -

 Free Cash Flow Yield -3.53% - - - -

 Cash Dividends Paid - Total (606) (606) (695) (934) (775 

BALANCE SHEET

 Cash & Short Term Investments 1,911 2,692 3,477 2,238 3,358 

 ST Debt & Current Portion LT Debt 24 81 166 25 18 

Long-Term Debt 92 97 169 30 49 

 Total Current Assets 5,560 4,271 5,838 5,324 5,903

 Total Current Liabilities 3,759 2,452 3,687 3,050 3,488

 Current Ratio 1.48 1.74 1.58 1.75 1.69

 Quick Ratio 1.44 1.57 1.37 1.47 1.44

 Cash Ratio 0.51 1.10 0.94 0.73 0.96

 Total Assets 9,601 8,360 9,996 9,171 9,748 

Return On Average Assets 5.90% - - - -

 Total Liabilities 3,985 2,684 3,985 3,234 3,708

 Total Liabilities / Total Assets 41.51% 32.11% 39.86% 35.26% 38.03%

 Total Shareholders' Equity 5,582 5,644 5,976 5,897 6,002

 Total Shareholders' Equity / Total Assets 58.14% 67.51% 59.78% 64.30% 61.57%

 Retained Earnings 4,595 4,690 5,020 4,941 5,027

 Average Growth Rates 

Petronas Dagangan Bhd 

Past Five Years Ending 12/31/2021 (Fiscal Year) 

Revenue -3.17%

 Net Income -10.21%

 Earnings Per Share -10.44% 

Capital Spending +107.36%

 Gross Margin +12.13%

 Cash Flow -22.02% 

 KEY STOCK DATA 

P/E Ratio (TTM) 28.77(12/22/22) 

EPS (TTM) RM0.77 

Market Cap RM21.94 B 

Shares Outstanding N/A 

Public Float 222.60 M 

Yield 2.78%(12/22/22) 

Latest Dividend RM0.200000003(12/27/22) 

Ex-Dividend Date 12/13/22 ? 

SHORT INTEREST () 

N/A

PRICE RM 21.80 PER SHARE

NIKE

 

Fiscal year is June-May. 

All values USD Millions.

2022 2021 2020 2019 2018 5-year trend 

INCOME STATEMENT

Sales/Revenue 46,792 44,493 37,420 39,122 36,363

 Sales Growth 5.17% 18.90% -4.35% 7.59%

 Gross Income 21,584 19,905 15,894 17,426 16,012

 Gross Income Growth 8.44% 25.24% -8.79% 8.83% -

 Gross Profit Margin 46.13% - - - -

 Interest Expense 292 289 144 124 117

 Interest Expense Growth 1.04% 100.69% 16.13% 5.98% - 

Pretax Income 6,651 6,661 2,887 4,801 4,325

 Pretax Income Growth -0.15% 130.72% -39.87% 11.01% -

 Pretax Margin 14.21% - - - -

 Net Income 6,046 5,727 2,539 4,029 1,933

 Net Income Growth 5.57% 125.56% -36.98% 108.43% -

 Net Margin 12.92% - - - -

 

CASH FLOW STATEMENT

Net Income before Extraordinaries 6,046 5,727 2,539 4,029 1,933

 Net Income Growth 5.57% 125.56% -36.98% 108.43% -

 Funds from Operations 6,848 6,612 3,730 5,341 3,473 

Net Operating Cash Flow 5,188 6,657 2,485 5,903 4,955

 Net Operating Cash Flow Growth -22.07% 167.89% -57.90% 19.13% -

 Net Operating Cash Flow / Sales 11.09% 14.96% 6.64% 15.09% 13.63%

 Capital Expenditures (758) (695) (1,086) (1,119) (1,028)

 Capital Expenditures / Sales -1.62% -1.56% -2.90% -2.86% -2.83% 

 Free Cash Flow 4,430 5,962 1,399 4,784 3,927

 Free Cash Flow Growth -25.70% 326.16% -70.76% 21.82% -

 Free Cash Flow Yield 1.35% - - - - 

 Cash Dividends Paid - Total (1,837) (1,638) (1,452) (1,332) (1,243) 

BALANCE SHEET

 Cash & Short Term Investments 12,997 13,476 8,787 4,663 5,245 

ST Debt & Current Portion LT Debt 930 469 696 15 342 

Long-Term Debt 11,697 12,344 12,319 3,464 3,468 

 Total Accounts Receivable 4,667 4,463 2,749 4,272 3,498 

Accounts Receivable Turnover 10.03 9.97 13.61 9.16 10.40

 Accounts Payable 3,358 2,836 2,248 2,612 2,279 

 Total Current Assets 28,213 26,291 20,556 16,525 15,134

Total Current Liabilities 10,730 9,674 8,284 7,866 6,040

 Current Ratio 2.63 2.72 2.48 2.10 2.51

 Quick Ratio 1.84 2.01 1.59 1.39 1.63

 Cash Ratio 1.21 1.39 1.06 0.59 0.87 

 Net Property, Plant & Equipment 7,717 8,017 7,963 4,744 4,454 

 Total Assets 40,321 37,740 31,342 23,717 22,536

 Assets - Total - Growth 6.84% 20.41% 32.15% 5.24% -

 Asset Turnover 1.20 - - - -

 Return On Average Assets 15.49% - - - - 

Total Liabilities 25,040 24,973 23,287 14,677 12,724

 Total Liabilities / Total Assets 62.10% 66.17% 74.30% 61.88% 56.46% 

 Retained Earnings 3,476 3,179 (191) 1,643 3,517

 Common Equity / Total Assets 37.90% 33.83% 25.70% 38.12% 43.54%

 Total Shareholders' Equity 15,281 12,767 8,055 9,040 9,812

 Total Shareholders' Equity / Total Assets 37.90% 33.83% 25.70% 38.12% 43.54%

 Total Equity 15,281 12,767 8,055 9,040 9,812

 Liabilities & Shareholders' Equity 40,321 37,740 31,342 23,717 22,536

Average Growth Rates 

Nike Inc. Cl B 

Past Five Years Ending 05/31/2022 (Fiscal Year) 

Revenue +5.74%

 Net Income +42.56%

 Earnings Per Share - 

Capital Spending -5.25%

 Gross Margin +46.18%

 Cash Flow +2.56% 

 KEY STOCK DATA 

P/E Ratio (TTM) 32.66(12/21/22) 

EPS (TTM) $3.54 

Market Cap $161.49 B 

Shares Outstanding 1.26 B 

Public Float 1.24 B 

Yield 1.17%(12/21/22) 

Latest Dividend $0.340000004(12/28/22) 

Ex-Dividend Date 12/02/22 ? 

SHORT INTEREST (11/30/22) 

Shares Sold Short 16.19 M 

Change from Last 0.70% 

Percent of Float 1.30%

Heineken Malaysia Bhd (HEIM)

 

Fiscal year is January-December. 

2021 2020 2019 2018 2017

5-year trend 

INCOME STATEMENT

All values MYR Millions.

Sales/Revenue 1,979 1,762 2,320 2,030 1,930 

Gross Income 600 479 709 654 663

 Gross Income Growth 25.34% -32.45% 8.43% -1.35% -

 Gross Profit Margin 30.32% - - - -

 EBIT 326 219 406 378 367 

Interest Expense 4 9 4 4 4

 Pretax Income 321 199 412 381 363

 Pretax Income Growth 61.75% -51.78% 8.24% 4.84% -

 Pretax Margin 16.24% - - - - 

Consolidated Net Income 246 154 313 283 270

 Net Income 246 154 313 283 270

 Net Income Growth 59.33% -50.73% 10.78% 4.61% -

 Net Margin 12.41% - - - - 

CASH FLOW STATEMENT

 All values MYR Thousands. 

Net Income before Extraordinaries 321,427.0 198,716.0 412,127.0 380,764.0 363,174.0

 Net Income Growth 61.75% -51.78% 8.24% 4.84% - 

Depreciation, Depletion & Amortization 70,706.0 68,847.0 56,684.0 45,657.0 103,645.0 

Funds from Operations 350,636.0 254,306.0 440,292.0 396,244.0 383,919.0 

Net Operating Cash Flow 341,430.0 230,486.0 412,705.0 349,686.0 358,921.0

 Net Operating Cash Flow Growth 48.13% -44.15% 18.02% -2.57% -

 Net Operating Cash Flow / Sales 17.25% 13.08% 17.79% 17.23% 18.60% 

 Capital Expenditures (104,179.0) (61,410.0) (108,581.0) (81,846.0) (77,235.0) 

Capital Expenditures Growth -69.65% 43.44% -32.67% -5.97% -

 Capital Expenditures / Sales -5.26% -3.48% -4.68% -4.03% -4.00% 

Free Cash Flow 242,611.0 173,011.0 310,859.0 272,292.0 287,092.0

 Free Cash Flow Growth 40.23% -44.34% 14.16% -5.16% -

 Free Cash Flow Yield 0.69% - - - -

 Net Investing Cash Flow (103,354.0) (61,199.0) (108,098.0) (80,520.0) (76,563.0)

 Net Investing Cash Flow Growth -68.88% 43.39% -34.25% -5.17% -

 Net Investing Cash Flow / Sales -5.22% -3.47% -4.66% -3.97% -3.97%

 Cash Dividends Paid - Total (199,385.0) (199,385.0) (290,014.0) (271,888.0) (302,098.0) 

 

BALANCE SHEET

 All values MYR Millions.

Cash & Short Term Investments 76 132 15 13 11 

Cash & ST Investments / Total Assets 7.00% 12.53% 1.36% 1.34% 1.30% 

ST Debt & Current Portion LT Debt 163 254 102 105 101 

Long-Term Debt 5 7 3 - - 

 

Total Accounts Receivable 420 317 578 478 469 

Accounts Receivable Growth 32.31% -45.11% 21.05% 1.83% -

 Accounts Receivable Turnover 4.71 5.55 4.01 4.25 4.12

 Accounts Payable 160 124 161 120 86

 Accounts Payable Growth 29.05% -23.42% 34.14% 39.87% -

 Total Current Assets 658 658 703 604 582

 Total Current Liabilities 655 659 664 536 478

 Current Ratio 1.00 1.00 1.06 1.13 1.22

 Quick Ratio 0.77 0.71 0.95 0.96 1.08

 Cash Ratio 0.12 0.20 0.02 0.02 0.02 

 Net Property, Plant & Equipment 407 364 360 293 242 

 Total Assets 1,092 1,052 1,106 940 868

 Assets - Total - Growth 3.77% -4.83% 17.59% 8.28% -

 Asset Turnover 1.85 - - - -

 Return On Average Assets 22.91%

 Total Liabilities 696 703 712 569 508

 Total Liabilities / Total Assets 63.77% 66.80% 64.36% 60.53% 58.48%

 Common Equity (Total) 396 349 394 371 361

 Common Stock Par/Carry Value 151 151 151 151 151

 Retained Earnings 244 198 243 220 209

 Other Appropriated Reserves 0 0 - - -

 Common Equity / Total Assets 36.23% 33.20% 35.64% 39.47% 41.52%

 Total Shareholders' Equity 396 349 394 371 361

 Total Shareholders' Equity / Total Assets 36.23% 33.20% 35.64% 39.47% 41.52%

 Total Equity 396 349 394 371 361

 Liabilities & Shareholders' Equity 1,092 1,052 1,106 940 868 

 

Average Growth Rates 

Heineken Malaysia Bhd 

Past Five Years Ending 12/31/2021 (Fiscal Year) 

Revenue +0.51%

 Net Income -1.81%

 Earnings Per Share -1.81% 

Capital Spending +6.98%

 Gross Margin +34.43%

 Cash Flow -3.10% 

 KEY STOCK DATA 

P/E Ratio (TTM) 19.08(12/21/22) 

EPS (TTM) RM1.34 

Market Cap RM7.62 B 

Shares Outstanding N/A 

Public Float 134.61 M 

Yield 4.15%(12/21/22) 

Latest Dividend RM0.400000006(11/11/22) 

Ex-Dividend Date 10/19/22 ? 

SHORT INTEREST () 

N/A ? 

STOCK MONEY FLOW 

N/A

How and Why Do Companies Pay Dividends?

An important part missing in many of these discussions 

• is the purpose of dividends and 
• why they are used by some companies and not by others.  

Let's look at different arguments for and against dividends policies. 

Arguments Against Dividends

1.  First, some financial analysts feel that the consideration of a dividend policy is irrelevant because investors have the ability to create "homemade" dividends. 

These analysts claim that this income is achieved by individuals adjusting their personal portfolios to reflect their own preferences. For example, investors looking for a steady stream of income are more likely to invest in bonds (in which interest payments don't change), rather than a dividend-paying stock (in which value can fluctuate). Because their interest payments won't change, those who own bonds don't care about a particular company's dividend policy.

2.  The second argument claims that little to no dividend payout is more favorable for investors. 

Supporters of this policy point out that taxation on a dividend is higher than on a capital gain. The argument against dividends is based on the belief that a firm that reinvests funds (rather than paying them out as dividends) will increase the value of the firm as a whole and consequently increase the market value of the stock.

According to the proponents of the no dividend policy, a company's alternatives to paying out excess cash as dividends are the following: 

• undertaking more projects, 
• repurchasing the company's own shares, 
• acquiring new companies and 
• profitable assets, and reinvesting in financial assets. 

Arguments For Dividends

In opposition to these two arguments is the idea that a high dividend payout is important for investors because:

1.  dividends provide certainty about the company's financial well-being; 

2.  dividends are also attractive for investors looking to secure current income. 

In addition, there are many examples of how the decrease and increase of a dividend distribution can affect the price of a security.

• Companies that have a long-standing history of stable dividend payouts would be negatively affected by lowering or omitting dividend distributions; these companies would be positively affected by increasing dividend payouts or making additional payouts of the same dividends.
• Furthermore, companies without a dividend history are generally viewed favorably when they declare new dividends. 

Dividend-Paying Methods

Should the company decide to follow either the high or low dividend method, it would use one of three main approaches: 

• residual, 
• stability, or 
• a hybrid compromise between the two.

Residual

Companies using the residual dividend policy choose to rely on internally generated equity to finance any new projects. As a result, dividend payments can come out of the residual or leftover equity only after all project capital requirements are met. These companies usually attempt to maintain balance in their debt/equity ratios before making any dividend distributions, which demonstrates that they decide on dividends only if there is enough money left over after all operating and expansion expenses are met.

For example, let's suppose that a company named CBC has recently earned $1,000 and has a strict policy to maintain a debt/equity ratio of 0.5 (one part debt to every two parts of equity).

• Now, suppose this company has a project with a capital requirement of $900. In order to maintain the debt/equity ratio of 0.5, CBC would have to pay for one-third of this project by using debt ($300) and two-thirds ($600) by using equity. In other words, the company would have to borrow $300 and use $600 of its equity to maintain the 0.5 ratio, leaving a residual amount of $400 ($1,000 - $600) for dividends. 
• On the other hand, if the project had a capital requirement of $1,500, the debt requirement would be $500 and the equity requirement would be $1,000, leaving zero ($1,000 - $1,000) for dividends. If any project required an equity portion that was greater than the company's available levels, the company would issue new stock.

Stability

The fluctuation of dividends created by the residual policy significantly contrasts with the certainty of the dividend stability policy. 

With the stability policy, companies 

• may choose a cyclical policy that sets dividends at a fixed fraction of quarterly earnings, or 
• it may choose a stable policy whereby quarterly dividends are set at a fraction of yearly earnings. 

In either case, the aim of the dividend stability policy is to reduce uncertainty for investors and to provide them with income.

Suppose our imaginary company, CBC, earned the $1,000 for the year (with quarterly earnings of $300, $200, $100, $400). 

• If CBC decided on a stable policy of 10% of yearly earnings ($1,000 x 10%), it would pay $25 ($100/4) to shareholders every quarter. 
• Alternatively, if CBC decided on a cyclical policy, the dividend payments would adjust every quarter to be $30, $20, $10 and $40 respectively. 

In either instance, companies following this policy are always attempting to share earnings with shareholders rather than searching for projects in which to invest excess cash.

Hybrid

The final approach is a combination between the residual and stable dividend policy. Using this approach, companies tend to view the debt/equity ratio as a long-term rather than a short-term goal. In today's markets, this approach is commonly used by companies that pay dividends. 

• As these companies will generally experience business cycle fluctuations, they will generally have one set dividend, which is set as a relatively small portion of yearly income and can be easily maintained. 
• On top of this set dividend, these companies will offer another extra dividend paid only when income exceeds general levels.

Conclusion

If a company decides to pay dividends, it will choose one of three approaches: residual, stability or hybrid policies. Which a company chooses can determine how profitable its dividend payments will be for investors - and how stable the income.


http://investopedia.com/articles/03/011703.asp?partner=basics4bb

Perlis Plantation Berhad

 

Fiscal year is January-December. 

2021 2020 2019 2018 2017 5-year trend 

INCOME STATEMENT

All values MYR Millions.

Sales/Revenue 4,857 4,191 4,684 4,528 4,284 

Sales Growth 15.91% -10.53% 3.43% 5.69% -

 Gross Income 399 430 630 561 540

 Gross Income Growth -7.10% -31.79% 12.25% 3.90% -

 Gross Profit Margin 8.22% - - - - 

SG&A Expense 408 388 416 365 348

 Other SG&A 408 388 416 365 348

 SGA Growth 5.10% -6.64% 13.90% 4.87% - 

Non Operating Income/Expense 58 (2) 7 (7) (10)

 Interest Expense 35 29 34 34 36

 Pretax Income (80) 74 237 1,168 1,271

 Pretax Income Growth -207.20% -68.68% -79.71% -8.10% -

 Pretax Margin -1.64% - - - - 

Equity in Affiliates 1,578 1,347 1,035 - -

 Consolidated Net Income 1,507 1,363 1,199 1,103 1,217

 Minority Interest Expense 11 46 47 28 33

 Net Income 1,496 1,317 1,153 1,075 1,184

 Net Income Growth 13.60% 14.26% 7.20% -9.17% -

 Net Margin 30.80% - - - -

CASH FLOW STATEMENT

 All values MYR Thousands. 

Net Income before Extraordinaries 1,498,073.0 1,420,933.0 1,271,628.0 1,167,683.0 1,270,599.0

 Net Income Growth 5.43% 11.74% 8.90% -8.10% -

 Depreciation, Depletion & Amortization 168,408.0 182,421.0 172,695.0 181,538.0 182,354.0

 Funds from Operations 711,104.0 732,885.0 752,406.0 745,435.0 620,377.0 

Net Operating Cash Flow 298,157.0 533,137.0 811,096.0 893,144.0 330,143.0

 Net Operating Cash Flow Growth -44.07% -34.27% -9.19% 170.53% -

 Net Operating Cash Flow / Sales 6.14% 12.72% 17.32% 19.72% 7.71%

 Capital Expenditures (222,113.0) (126,453.0) (142,640.0) (150,622.0) (168,683.0) 

 Capital Expenditures Growth -75.65% 11.35% 5.30% 10.71% -

 Capital Expenditures / Sales -4.57% -3.02% -3.05% -3.33% -3.94% 

 Free Cash Flow 107,831.0 429,072.0 668,456.0 742,522.0 161,460.0

 Free Cash Flow Growth -74.87% -35.81% -9.97% 359.88% -

 Free Cash Flow Yield - 2.36% - - - -

 Cash Dividends Paid - Total (682,847.0) (467,170.0) (424,254.0) (394,013.0) (327,248.0)

BALANCE SHEET

 All values MYR Millions. 

Cash & Short Term Investments 1,270 1,389 1,483 1,361 1,307 

Cash & ST Investments / Total Assets 4.64% 5.58% 6.29% 5.86% 5.70%

 ST Debt & Current Portion LT Debt 1,018 485 386 501 775 

Long-Term Debt 403 265 232 253 276 

 Total Accounts Receivable 1,060 863 746 777 915

 Accounts Receivable Growth 22.84% 15.63% -3.88% -15.12% -

 Accounts Receivable Turnover 4.58 4.86 6.27 5.83 4.68

 Accounts Payable 326 212 407 446 230

 Accounts Payable Growth 54.04% -48.02% -8.73% 93.89% -

 Total Current Assets 3,694 2,994 3,151 3,139 3,142 

Total Current Liabilities 1,679 934 1,085 1,168 1,225

 Current Ratio 2.20 3.21 2.90 2.69 2.56

 Quick Ratio 1.52 2.46 2.13 1.89 1.88

 Cash Ratio 0.76 1.49 1.37 1.17 1.07 

 Net Property, Plant & Equipment 1,794 1,679 1,686 1,621 1,679 

Total Assets 27,397 24,884 23,580 23,245 22,939

 Assets - Total - Growth 10.10% 5.53% 1.44% 1.33% -

 Asset Turnover 0.19 - - - -

 Return On Average Assets 5.72%

 Total Investments and Advances 21,782 20,116 18,649 18,386 18,018

 Total Liabilities 2,217 1,337 1,449 1,508 1,583

 Total Liabilities / Total Assets 8.09% 5.37% 6.14% 6.49% 6.90% 

 Common Equity (Total) 24,431 22,819 21,435 21,040 20,680

 Common Stock Par/Carry Value 1,429 1,429 1,429 1,429 1,192

 Retained Earnings 18,725 18,012 17,180 16,444 15,992 

 Total Shareholders' Equity 24,431 22,819 21,435 21,040 20,680

 Total Shareholders' Equity / Total Assets 89.18% 91.70% 90.91% 90.52% 90.15%

 Accumulated Minority Interest 749 728 696 697 676

 Total Equity 25,180 23,546 22,131 21,737 21,356

 Liabilities & Shareholders' Equity 27,397 24,884 23,580 23,245 22,939 

 Average Growth Rates 

PPB Group Bhd 

Past Five Years Ending 12/31/2021 (Fiscal Year) 

Revenue +2.57%

 Net Income +4.82%

 Earnings Per Share +4.82% 

Capital Spending +6.33%

 Gross Margin +15.02%

 Cash Flow -2.13% 

 KEY STOCK DATA 

P/E Ratio (TTM) 10.70(12/20/22) 

EPS (TTM) RM1.61 

Market Cap RM25.38 B 

Shares Outstanding N/A 

Public Float 596.55 M 

Yield 2.04%(12/20/22) 

Latest Dividend RM0.119999997(09/28/22) 

Ex-Dividend Date 09/08/22

TESCO UK

 

Fiscal year is March-February. 

All values GBP Millions.

2022 2021 2020 2019 2018 5-year trend 

INCOME STATEMENT

Sales/Revenue 61,344 57,887 58,091 63,911 57,493

 Sales Growth 5.97% -0.35% -9.11% 11.16% - 

Cost of Goods Sold (COGS) incl. D&A 56,650 54,028 53,680 59,403 54,092

 COGS Growth 4.85% 0.65% -9.63% 9.82% -

 Gross Income 4,694 3,859 4,411 4,508 3,401

 Gross Income Growth 21.64% -12.51% -2.15% 32.55% -

 Gross Profit Margin 7.65% - - - -

 SG&A Expense 1,984 1,767 1,736 1,979 1,765

 SGA Growth 12.28% 1.79% -12.28% 12.12% - 

EBIT 2,710 - - - - Interest Expense 652 695 722 847 400

 Interest Expense Growth -6.19% -3.74% -14.76% 111.75% -

 Pretax Income 2,018 610 1,036 1,585 1,306

 Pretax Income Growth 230.82% -41.12% -34.64% 21.36% -

 Pretax Margin 3.29% - - - - 

Net Income 1,521 528 736 1,272 992

 Net Income Growth 188.07% -28.26% -42.14% 28.23% -

 Net Margin 2.48% - - - - 

CASH FLOW STATEMENT

 Net Income before Extraordinaries 2,560 1,547 (150) 2,649 1,839

 Net Income Growth 65.48% 1131.33% -105.66% 44.05% -

 Funds from Operations 3,430 394 3,651 3,262 2,268 

Net Operating Cash Flow 3,792 640 108 2,614 2,858

 Net Operating Cash Flow Growth 492.50% 492.59% -95.87% -8.54% -

 Net Operating Cash Flow / Sales 6.18% 1.11% 0.19% 4.09% 4.97%

 Capital Expenditures (1,178) (1,377) (1,204) (1,292) (1,637) 

Capital Expenditures Growth 14.45% -14.37% 6.81% 21.08% -

 Capital Expenditures / Sales -1.92% -2.38% -2.07% -2.02% -2.85% 

Free Cash Flow 2,843 (531) (895) 1,513 1,418

 Free Cash Flow Growth 635.40% 40.67% -159.15% 6.70% -

 Free Cash Flow Yield 9.52% - - - -

 Cash Dividends Paid - Total (731) (5,858) (656) (357) (82) 

BALANCE SHEET

 Cash & Short Term Investments 4,647 3,699 5,415 3,373 5,156

 Cash & Short Term Investments Growth 25.63% -31.69% 60.54% -34.58% -

 Cash & ST Investments / Total Assets 9.42% 8.13% 10.19% 5.93% 11.49%

 ST Debt & Current Portion LT Debt 1,272 1,655 2,817 2,209 1,479 

Long-Term Debt 14,085 14,015 14,973 15,439 7,142 

 Total Accounts Receivable 4,705 4,397 5,697 6,438 6,153 

Accounts Receivable Growth 7.00% -22.82% -11.51% 4.63% -

 Accounts Receivable Turnover 13.04 13.17 10.20 9.93 9.34

 Inventories 2,339 2,069 2,433 2,617 2,264 

Accounts Payable 9,181 8,399 8,922 9,131 8,994 

Accounts Payable Growth 9.31% -5.86% -2.29% 1.52% -

 Total Current Assets 12,189 10,807 13,608 12,480 13,600

 Total Current Liabilities 16,125 15,721 18,656 20,973 19,233

 Current Ratio 0.76 0.69 0.73 0.60 0.71

 Quick Ratio 0.61 0.56 0.60 0.47 0.59

 Cash Ratio 0.29 0.24 0.29 0.16 0.27

 Net Property, Plant & Equipment 22,780 22,896 26,108 26,899 18,521 

 Total Assets 49,351 45,512 53,147 56,898 44,884

 Assets - Total - Growth 8.44% -14.37% -6.59% 26.77% -

 Asset Turnover 1.29 - - - -

 Return On Average Assets 3.20% - - - -

 Total Liabilities 33,707 33,453 39,778 43,466 34,404

 Total Liabilities / Total Assets 68.30% 73.50% 74.85% 76.39% 76.65%

 Common Equity (Total) 15,660 12,077 13,391 13,456 10,502 

 Retained Earnings 10,022 6,329 7,168 7,121 4,290 Treasury Stock (365) (188) (250) (179) (16) Common Equity / Total Assets 31.73% 26.54% 25.20% 23.65% 23.40%

 Total Shareholders' Equity 15,660 12,077 13,391 13,456 10,502

 Total Shareholders' Equity / Total Assets 31.73% 26.54% 25.20% 23.65% 23.40%

 Accumulated Minority Interest (16) (18) (22) (24) (22)

 Total Equity 15,644 12,059 13,369 13,432 10,480

 Liabilities & Shareholders' Equity 49,351 45,512 53,147 56,898 44,884

Average Growth Rates 

Tesco PLC 

Past Five Years Ending 02/28/2022 (Fiscal Year) 

Revenue +1.34%

 Net Income +10.73%

 Earnings Per Share +0.51% 

Capital Spending -5.61%

 Gross Margin +9.55%

 Cash Flow +20.10% 

 KEY STOCK DATA 

P/E Ratio (TTM) 18.00(12/16/22) 

EPS (TTM) £0.12 

Market Cap £16.28 B 

Shares Outstanding 7.37 B 

Public Float 7.16 B 

Yield 5.20%(12/16/22) 

Latest Dividend p3.84999998(11/25/22) 

Ex-Dividend Date 10/13/22

Tencent HK

 

Fiscal year is January-December. 

All values HKD Millions.

2021 2020 2019 2018 2017 5-year trend 

INCOME STATEMENT

Sales/Revenue 675,060 541,692 427,814 370,372 274,158

 Sales Growth 24.62% 26.62% 15.51% 35.09% - 

Gross Income 290,106 244,184 188,023 165,629 134,825

 Gross Income Growth 18.81% 29.87% 13.52% 22.85% -

 Gross Profit Margin 42.97%

 Non Operating Income/Expense 153,763 32,819 14,303 5,642 21,664

 Non-Operating Interest Income 8,015 7,818 7,160 5,412 4,543

 Interest Expense 9,543 8,370 8,720 5,801 3,528

 Pretax Income 318,786 198,163 125,957 110,129 100,773

 Pretax Income Growth 60.87% 57.33% 14.37% 9.28% -

 Pretax Margin 47.22%

 Net Income 270,958 179,619 105,806 93,239 82,457

 Net Income Growth 50.85% 69.76% 13.48% 13.08% -

 Net Margin 40.14%

CASH FLOW STATEMENT

 Net Income before Extraordinaries 274,559 179,931 108,729 94,737 83,565

 Net Income Growth 52.59% 65.49% 14.77% 13.37% -

 Funds from Operations 210,932 188,087 152,073 127,573 101,489

 Net Operating Cash Flow 212,006 218,902 169,456 133,372 128,774

 Net Operating Cash Flow Growth -3.15% 29.18% 27.06% 3.57% -

 Net Operating Cash Flow / Sales 31.41% 40.41% 39.61% 36.01% 46.97% 

 Capital Expenditures (74,922) (74,837) (64,620) (64,033) (36,903) 

Capital Expenditures Growth -0.11% -15.81% -0.92% -73.51% -

 Capital Expenditures / Sales -11.10% -13.82% -15.10% -17.29% -13.46% 

Free Cash Flow 176,691 180,618 143,641 109,987 114,813

 Free Cash Flow Growth -2.17% 25.74% 30.60% -4.20% -

 Free Cash Flow Yield 3.65% - - - -

 Cash Dividends Paid - Total (15,069) (11,618) (9,429) (8,026) (5,825)

BALANCE SHEET

 Cash & Short Term Investments 323,955 273,169 212,053 193,674 173,455 

 ST Debt & Current Portion LT Debt 29,908 21,417 40,838 46,246 24,547

 Long-Term Debt 365,789 289,770 219,258 159,821 133,798 

 Total Accounts Receivable 103,373 79,951 57,732 42,002 29,347 

Accounts Payable 133,911 111,486 90,259 84,084 60,124 

 Total Current Assets 608,915 390,692 284,087 257,286 220,557 

Total Current Liabilities 494,685 321,078 268,637 232,137 182,626

 Current Ratio 1.23 1.22 1.06 1.11 1.21

 Quick Ratio 1.23 1.21 1.05 1.11 1.21

 Cash Ratio 0.65 0.85 0.79 0.83 0.95 

 Net Property, Plant & Equipment 108,020 92,137 68,912 45,580 32,124

 Intangible Assets 232,291 207,312 144,142 64,601 48,337 

Total Assets 1,972,349 1,580,962 1,067,124 825,072 665,853

 Assets - Total - Growth 24.76% 48.15% 29.34% 23.91% -

 Asset Turnover 0.38 - - - -

 Return On Average Assets 15.25%

 Total Liabilities 899,921 658,483 520,328 418,869 333,218

 Total Liabilities / Total Assets 45.63% 41.65% 48.76% 50.77% 50.04%

 Common Equity (Total) 986,318 834,672 484,023 368,917 307,403

 Additional Paid-In Capital/Capital Surplus 82,362 57,851 39,454 31,125 26,655

 Retained Earnings 837,514 638,425 430,269 341,719 243,309

 Common Equity / Total Assets 50.01% 52.80% 45.36% 44.71% 46.17%

 Total Shareholders' Equity 986,318 834,672 484,023 368,917 307,403

 Total Shareholders' Equity / Total Assets 50.01% 52.80% 45.36% 44.71% 46.17%

 Accumulated Minority Interest 86,111 87,807 62,773 37,286 25,232

 Total Equity 1,072,428 922,479 546,796 406,203 332,635

 Liabilities & Shareholders' Equity 1,972,349 1,580,962 1,067,124 825,072 665,853

 Average Growth Rates 

Tencent Holdings Ltd. 

Past Five Years Ending 12/31/2021 (Fiscal Year) 

Revenue +29.25%

 Net Income +45.72%

 Earnings Per Share +44.57% 

Capital Spending +20.60%

 Gross Margin +55.85%

 Cash Flow +10.78% 

 KEY STOCK DATA

 P/E Ratio (TTM) 14.50(12/16/22) 

EPS (TTM) HK$21.85 

Market Cap HK$3.01 T 

Shares Outstanding 9.57 B 

Public Float 5.97 B 

Yield 0.51%(12/16/22) 

Latest Dividend HK$1.60000002(06/06/22) 

Ex-Dividend Date 05/20/22 ? 

SHORT INTEREST ()

Alibaba HK

 

Fiscal year is April-March. All values HKD Millions.

2022 2021 2020 2019 2018 5-year trend 

INCOME STATEMENT

Sales/Revenue 1,034,800 820,205 571,884 440,328 294,897

 Sales Growth 26.16% 43.42% 29.88% 49.32% -

 Cost of Goods Sold (COGS) incl. D&A 667,600 493,919 327,872 251,001 133,580

 COGS Growth 35.16% 50.64% 30.63% 87.90% 

Gross Income 367,200 326,286 244,012 189,327 161,318

 Gross Income Growth 12.54% 33.72% 28.88% 17.36% -

 Gross Profit Margin 35.49% - - - -

 SG&A Expense 251,325 221,811 136,825 119,305 78,117

 SGA Growth 13.31% 62.11% 14.69% 52.73% -

 EBIT 115,875 104,475 107,187 70,022 83,201

 Unusual Expense 31,401 1,930 4,605 3,322 (81)

 Non Operating Income/Expense (6,282) 8,670 8,346 258 501

 Non-Operating Interest Income - 83,238 81,855 51,536 38,073

 Interest Expense 5,955 5,118 5,812 6,064 4,202

 Interest Expense Growth 16.35% -11.93% -4.16% 44.32% -

 Pretax Income 72,237 189,335 186,972 112,431 118,308

 Pretax Income Growth -61.85% 1.26% 66.30% -4.97% -

 Pretax Margin 6.98%

 

CASH FLOW STATEMENT

Net Income before Extraordinaries 57,109 163,842 157,469 93,750 72,364 

Net Income Growth -65.14% 4.05% 67.97% 29.55% -

 Depreciation, Depletion & Amortization 58,305 54,783 47,602 43,327 25,947

 Other Funds 81,436 (15,038) (22,602) 4,216 22,012

 Funds from Operations 195,189 207,288 178,606 138,726 121,473

 Changes in Working Capital (22,017) 57,755 24,031 37,683 26,020

 Other Assets/Liabilities (33,906) (35,305) (42,422) 34,107 (8,299)

 Net Operating Cash Flow 173,173 265,042 202,637 176,409 147,493

 Net Operating Cash Flow Growth -34.66% 30.80% 14.87% 19.60% -

 Net Operating Cash Flow / Sales 16.73% 32.31% 35.43% 40.06% 50.02% 

 Capital Expenditures (64,684) (49,381) (50,922) (58,006) (35,157)

 Capital Expenditures Growth -30.99% 3.03% 12.21% -64.99% -

 Capital Expenditures / Sales -6.25% -6.02% -8.90% -13.17% -11.92% 

 Free Cash Flow 108,488 215,661 151,715 118,403 112,337

 Free Cash Flow Growth -49.70% 42.15% 28.13% 5.40% -

 Free Cash Flow Yield 4.44% - - - -

BALANCE SHEET

 Cash & Short Term Investments 605,406 613,026 410,225 237,511 262,524 

ST Debt & Current Portion LT Debt 17,081 20,763 8,654 26,243 7,519

 Long-Term Debt 200,951 194,430 152,292 130,635 149,096

 Total Current Assets 783,523 759,129 503,668 313,385 318,353

 Total Current Liabilities 473,832 447,559 264,303 242,581 169,410

 Current Ratio 1.65 1.70 1.91 1.29 1.88

 Quick Ratio 1.58 1.62 1.84 1.25 1.85

 Cash Ratio 1.28 1.37 1.55 0.98 1.55 

 Net Property, Plant & Equipment 312,919 263,484 154,677 116,429 90,340 

Total Assets 2,093,442 2,004,711 1,434,804 1,127,375 894,748

 Assets - Total - Growth 4.43% 39.72% 27.27% 26.00% -

Asset Turnover 0.51 - - - -

 Return On Average Assets 3.67% - - - -

 Common Equity (Total) 1,171,080 1,111,927 825,511 575,069 456,532 

Common Equity / Total Assets 55.94% 55.47% 57.53% 51.01% 51.02%

 Total Shareholders' Equity 1,171,080 1,111,927 825,511 575,069 456,532

 Total Shareholders' Equity / Total Assets 55.94% 55.47% 57.53% 51.01% 51.02%

 Accumulated Minority Interest 165,088 173,355 135,773 143,847 91,830

 Total Equity 1,336,168 1,285,282 961,284 718,916 548,362

 Liabilities & Shareholders' Equity 2,093,442 2,004,711 1,434,804 1,127,375 894,748

Average Growth Rates 

Alibaba Group Holding Ltd. 

Past Five Years Ending 03/31/2022 (Fiscal Year) 

Revenue +50.18%

 Net Income -0.06%

 Earnings Per Share -0.90% 

Capital Spending +16.80%

 Gross Margin +50.88%

 Cash Flow -0.69% 

 KEY STOCK DATA 

P/E Ratio (TTM) 239.54(12/16/22) 

EPS (TTM) HK$0.36 

Market Cap HK$1.83 T 

Shares Outstanding 21.18 B 

Public Float 14.69 B 

Yield 9988 is not currently paying a regular dividend. 

Latest Dividend N/A 

Ex-Dividend Date N/A ? 

SHORT INTEREST 

()

Public Bank Berhad

 

Fiscal year is January-December. All values MYR Millions.

2021 2020 2019 2018 2017 5-year trend 

INCOME STATEMENT

Interest Income 15,092 15,500 17,565 17,330 16,282 

Interest Income Growth -2.63% -11.76% 1.36% 6.44% - 

Total Interest Expense 5,160 7,004 8,857 8,698 7,861 

Total Interest Expense Growth -26.34% -20.92% 1.83% 10.65% - 

Net Interest Income 9,932 8,495 8,708 8,632 8,420 

Net Interest Income Growth 16.92% -2.45% 0.88% 2.52% - 

Loan Loss Provision 1,201 1,106 154 169 203 

Loan Loss Provision Growth 8.58% 616.21% -8.75% -16.74% - 

Net Interest Income after Provision 8,731 7,389 8,554 8,463 8,217 

Net Interest Inc After Loan Loss Prov Growth 18.17% -13.62% 1.08% 2.99% -

 Net Interest Margin 2.20%

 Non-Interest Income 3,601 3,588 3,113 3,011 3,143 

Non-Interest Expense 4,966 4,672 4,587 4,424 4,246 

Operating Income 7,367 6,305 7,080 7,050 7,114 

Operating Income Growth 16.83% -10.94% 0.43% -0.91% - 

Pretax Income 7,367 6,285 7,134 7,096 7,121 

Pretax Income Growth 17.21% -11.90% 0.54% -0.35% -

 Pretax Margin 39.41%

 Net Income 5,657 4,872 5,512 5,591 5,470 

Net Income 5,657 4,872 5,512 5,591 5,470

 Net Income Growth 16.11% -11.61% -1.41% 2.20% -

 Net Margin 30.26% F

CASH FLOW STATEMENT

Funds from Operations 6,985 6,496 6,329 5,989 6,204 

Funds from Operations Growth 7.52% 2.64% 5.69% -3.48% -

 Net Operating Cash Flow 7,889 4,744 6,564 5,679 6,700 

Net Operating Cash Flow / Interest Income 52.27% 30.60% 37.37% 32.77% 41.15% 

Capital Expenditures (143) (373) (205) (218) (312) 

Free Cash Flow 7,746 4,370 6,358 5,461 6,389

 Free Cash Flow Growth 77.24% -31.27% 16.43% -14.52% -

 Free Cash Flow Yield 4.66% 

 Cash Dividends Paid - Total (3,979) (1,553) (2,717) (2,555) (2,278)

 Cash Dividend Growth -   156.25% 42.86% -6.35% -12.15% - 

BALANCE SHEET

ASSETS

 Total Cash & Due from Banks 6,691 5,689 15,213 14,298 13,421

 Investments - Total 80,572 78,225 72,162 72,246 61,157 

Investments Growth 3.00% 8.40% -0.12% 18.13% - 

Net Loans 366,114 357,947 337,383 325,981 313,156 

Real Estate Other Than Bank Premises 807 904 931 845 796

 Loans - 1 Yr Growth Rate 2.28% 6.10% 3.50% 4.10% - 

Net Property, Plant & Equipment 2,577 2,697 2,570 1,567 1,564

 Other Assets (Including Intangibles) 5,316 5,612 4,370 4,604 5,076 

Total Assets 462,739 451,257 432,831 419,693 395,276

 Assets - Total Growth 2.54% 4.26% 3.13% 6.18% -

 Return On Average Assets 1.24% - - - - 

LIABILITIES & EQUITY

 Total Deposits 380,394 365,871 353,340 339,160 319,259 

Total Debt 26,506 29,501 28,370 32,561 31,081 

Other Liabilities 6,197 6,533 6,193 5,671 6,325

 Total Liabilities 413,314 402,830 388,084 377,597 356,831

 Common Equity (Total) 48,163 47,248 43,594 40,973 37,365 

Accumulated Minority Interest 1,263 1,178 1,152 1,123 1,081

 Total Equity 49,425 48,427 44,746 42,096 38,446

 Liabilities & Shareholders' Equity 462,739 451,257 432,831 419,693 395,276

Average Growth Rates 

Public Bank Bhd 

Past Five Years Ending 12/31/2021 (Fiscal Year) 

Revenue -0.75%

 Net Income +0.68%

 Earnings Per Share -15.89% 

Capital Spending -10.82%

 Gross Margin -

 Cash Flow +4.25% 

 KEY STOCK DATA 

P/E Ratio (TTM) 14.69(12/16/22) 

EPS (TTM) RM0.30 

Market Cap RM85.02 B 

Shares Outstanding 19.41 B 

Public Float 11.82 B 

Yield 4.50%(12/16/22) 

Latest Dividend RM0.0399999991(12/23/22) 

Ex-Dividend Date 12/14/22 ? 

SHORT INTEREST () 

N/A