Showing posts with label consumer products.. Show all posts
Showing posts with label consumer products.. Show all posts

Sunday 7 July 2013

Consumer Stocks on my radar screen

Carlsberg
Guinness
Nestle
Dutch Lady
Hup Seng Industries
Padini
Zhulian


Carlsberg

ROE 64.08%
EPS CAGR 5 Yrs 19.5%
DY High 5.2% - Low 3.6%
D/E 0.02
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 1584.78 m
LFY Earnings 191.63 m
Gross Margin 36.26%
Market Cap RM  4353.85 m
Shares (m) 305.75
Per Share price RM  14.24
P/E 22.7
DCA Strong


Guinness

ROE 54.62%
EPS CAGR 5 Yrs 13%
DY High 7.1% - Low 4.1%
D/E 0.53
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  1623.69 m
LFY Earnings 207.40 m
Gross Margin 33.70%
Market Cap  RM 5437.76 m
Shares (m) 302.10
Per Share price RM 18.00
P/E  26.2
DCA Strong


Nestle

ROE 67.27%
EPS CAGR 5 Yrs 11.6%
DY High 4.0% - Low 3.1%
D/E 0.13
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 4556.42  m
LFY Earnings  505.35 m
Gross Margin 34.09%
Market Cap  RM 14,252.91 m
Shares (m)  234.50
Per Share price RM  60.78
P/E 28.2
DCA Strong


Dutch Lady

ROE 57.08%
EPS CAGR 5 Yrs 21.2%
DY High 6.3% - Low 3.6%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  882.18 m
LFY Earnings 123.38  m
Gross Margin 58.18%
Market Cap  RM 3101.44 m
Shares (m)  64
Per Share price RM  48.46
P/E 25.1
DCA Strong


Hup Seng Industries

ROE 21.24%
EPS CAGR 5 Yrs 46.9%
DY High 11.0% - Low 7.3%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 247.82  m
LFY Earnings 32.54  m
Gross Margin 35.47%
Market Cap RM  414.00 m
Shares (m)  120.00
Per Share price RM  3.45
P/E  12.7


Padini

ROE 28.23%
EPS CAGR 5 Yrs 25%
DY High 4.9% - Low 2.9%
D/E 0.15
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  723.41 m
LFY Earnings  96.00 m
Gross Margin 48.19%
Market Cap RM 1236.87 m
Shares (m) 657.91
Per Share price RM 1.88
P/E 12.9


Zhulian

ROE 25.91%
EPS CAGR 5 Yrs 14.7%
DY High 8.7% - Low 5.4%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  450.43 m
LFY Earnings 117.09  m
Gross Margin 72.51%
Market Cap RM 1334.00 m
Shares (m) 460.00
Per Share price RM  2.90
P/E 11.4


DCA = durable competitive advantage

Friday 22 June 2012

Investor's Checklist: Consumer Goods


Find companies that enjoy the cost advantages of manufacturing on a larger scale than most other competitors.  One related issue is whether the firm holds dominant market share in its categories.

Look for the firms that consistently launch successful new products - all the better if the firm is first to market with these innovations.

Check to see if the company is supporting its brand with consistent advertising.  If the firm constantly promotes its products with sale prices, it's depleting brand equity and just milking the brand for shorter-term gain.

Examine how well the firm is handling operating costs.  Occasional restructuring can help squeeze out efficiency gains and lower costs, but if the firm is regularly incurring restructuring costs and relying solely on this cost-cutting tactic to boost its business, tread carefully.

Because these mature firms generate so much free cash flow, it's important to make sure management is using it wisely.  How much of the cash is turned over to shareholders in the form of dividends or share repurchase agreements?

Keep in mind that investors may bid up a consumer goods stock during economic downturns, making the shares pricey relative to its fair value.  Look for buying opportunities when shares trade with a 20 percent to 30 percent margin of safety.  


Ref:  The Five Rules for Successful Stock Investing by Pat Dorsey



Read also:
Investor's Checklist: A Guided Tour of the Market...

Friday 19 March 2010

Searching for good quality stocks in the Consumer Sector

Let us have a look at some consumer stocks.  I have selected these stocks based on their doubling in their earnings over the 10 year period of 1999 to 2009.

Here are these stocks:

Ajinomoto
BAT
Bonia
DLady
F&N
Mamee
Nestle
Padini
PPB
QL
UMW

Subjecting the above to a further screening criteria (that is, no decline of >5% in earnings in 2 out of these 10 years), the following stocks are discarded from this list:

Ajinomoto
Mamee
UMW

Also, BAT is also discarded as the earnings growth the last 5 years had been negligible or anaemic at best.

This leaves the following stocks, with history of durable competitive advantage, in this list for further analysis.

Ajinomoto
BAT
Bonia
DLady
F&N
Mamee
Nestle
Padini
PPB
QL
UMW
Which 1 or 2 of the above stocks would you wish to own for the long term?

Time for QVM analysis when time permits..




Wednesday 27 January 2010

The Economic Climate (8): Cold Climates and Recession

Reviewing the recessions in US since World War II to 1995:  all last an average of 11 months, and cause an average of 1.62 million people to lose their jobs.

In a recession, business goes from bad to terrible. 

Companies that sell soft drinks, hamburgers, medicines - things that people either cannot do without or can easily afford - can sail through a recession unscathed. 

Companies that sell big-ticket items such as cars, refrigerators, and houses have serious problems in recessions.  They can lose millions, or even billions, of dollars, and unless they have enough money in the bank to tide them over, they face the prospect of going bankrupt.

Many investors have learned to "recession-proof" their portfolios. 
  • They buy stocks only in McDonald's, Coca-Cola, or Johnson & Johnson, and other such "consumer growth" companies that tend to do well in cold climates. 
  • They ignore the likes of General Motors, Reynolds Metals, or U.S. Home Corp.  These are examples of "cyclical" companies that suffer in cold climates. 
Cyclical companies either
  • sell expensive products,
  • make parts for expensive products, or
  • produce the raw materials used in expensive products. 
In recessions, consumers stop buying expensive products.