Kuala Lumpur Kepong | ||||||
Year | DPS | EPS | Retained EPS | |||
2002 | 7.2 | 24.5 | 17.3 | |||
2003 | 9.6 | 33.7 | 24.1 | |||
2004 | 13.1 | 39.7 | 26.6 | |||
2005 | 15.5 | 36.1 | 20.6 | |||
2006 | 21.1 | 33.7 | 12.6 | |||
2007 | 26.8 | 57.7 | 30.9 | |||
2008 | 40.7 | 103 | 62.3 | |||
2009 | 53.8 | 60.6 | 6.8 | |||
2010 | 45 | 85.8 | 40.8 | |||
2011 | 60 | 127 | 67 | |||
Total | 292.8 | 601.8 | 309 | |||
2002-2011 | ||||||
EPS increase (sen) | 102.5 | |||||
DPO | 49% | |||||
Return on retained earnings | 33% | |||||
(Figures are in sens) |
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Thursday 30 August 2012
KLK - Return on Retained Earnings
Boustead - Return on Retained Earnings
Boustead | ||||||
Year | DPS | EPS | Retained EPS | |||
2002 | 3.2 | 11.1 | 7.9 | |||
2003 | 3.7 | 16.7 | 13 | |||
2004 | 8 | 22 | 14 | |||
2005 | 9.3 | 14.4 | 5.1 | |||
2006 | 9.3 | 7.8 | -1.5 | |||
2007 | 10.9 | 49.1 | 38.2 | |||
2008 | 18 | 59.7 | 41.7 | |||
2009 | 18.2 | 26.7 | 8.5 | |||
2010 | 20.8 | 38.3 | 17.5 | |||
2011 | 35.9 | 34.2 | -1.7 | |||
Total | 137.3 | 280 | 142.7 | |||
2002-2011 | ||||||
EPS increase (sen) | 23.1 | |||||
DPO | 49% | |||||
Return on retained earnings | 16% | |||||
(Figures are in sens) |
Petronas Gas
Petronas Gas | ||||||
Year | DPS | EPS | Retained EPS | |||
2003 | 30 | 33.2 | 3.2 | |||
2004 | 18.6 | 32.4 | 13.8 | |||
2005 | 30.8 | 41.6 | 10.8 | |||
2006 | 35.8 | 49.1 | 13.3 | |||
2007 | 38.3 | 63 | 24.7 | |||
2008 | 42.5 | 55.2 | 12.7 | |||
2009 | 48.7 | 48.7 | 0 | |||
2010 | 50 | 47 | -3 | |||
2011 | 50 | 72 | 22 | |||
Total | 344.7 | 442.2 | 97.5 | |||
2003-2011 | ||||||
EPS increase (sen) | 38.8 | |||||
DPO | 78% | |||||
Return on retained earnings | 40% | |||||
(Figures are in sens) |
Poh Kong - Return on Retained Earnings
Poh Kong | ||||||
Year | DPS | EPS | Retained EPS | |||
2004 | 1 | 8.5 | 7.5 | |||
2005 | 1.2 | 2.9 | 1.7 | |||
2006 | 1.2 | 5.3 | 4.1 | |||
2007 | 1.3 | 4.5 | 3.2 | |||
2008 | 1.4 | 7 | 5.6 | |||
2009 | 1.4 | 6.9 | 5.5 | |||
2010 | 1.4 | 8 | 6.6 | |||
2011 | 1.4 | 10 | 8.6 | |||
Total | 10.3 | 53.1 | 42.8 | |||
2003-2011 | ||||||
EPS increase (sen) | 1.5 | |||||
DPO | 19% | |||||
Return on retained earnings | 4% | |||||
(Figures are in sens) |
Tongher - Return on Retained Earnings
Tong Herr | ||||||
Year | DPS | EPS | Retained EPS | |||
2002 | 5.3 | 9.8 | 4.5 | |||
2003 | 5.3 | 16.2 | 10.9 | |||
2004 | 14 | 35.4 | 21.4 | |||
2005 | 12.1 | 23.4 | 11.3 | |||
2006 | 13 | 43.7 | 30.7 | |||
2007 | 10.2 | 51 | 40.8 | |||
2008 | 13.9 | 14.4 | 0.5 | |||
2009 | 5 | 6.6 | 1.6 | |||
2010 | 5 | 14.4 | 9.4 | |||
2011 | 6 | 29 | 23 | |||
Total | 89.8 | 243.9 | 154.1 | |||
2002-2011 | ||||||
EPS increase (sen) | 19.2 | |||||
DPO | 37% | |||||
Return on retained earnings | 12% | |||||
(All figures are in sens) |
TSM Global - Return on Retained Earnings
TSM Global (formerly Juan Kuang)
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2002 | 0 | -1.3 | -1.3 | |||
2003 | 0 | -12.9 | -12.9 | |||
2004 | 0 | -4.7 | -4.7 | |||
2005 | 0 | 14.6 | 14.6 | |||
2006 | 0 | 11.5 | 11.5 | |||
2007 | 0 | 10.9 | 10.9 | |||
2008 | 2.5 | 18.6 | 16.1 | |||
2009 | 2.5 | 20 | 17.5 | |||
2010 | 2.5 | 22.3 | 19.8 | |||
2011 | 5 | 24.9 | 19.9 | |||
Total | 12.5 | 103.9 | 91.4 | |||
2002-2011 | ||||||
DPO | 12% | |||||
EPS increase (sen) | 26.2 | |||||
Return on retained earnings | 29% |
Top Glove - Return on Retained Earnings
Top Glove
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2002 | 0.6 | 3.5 | 2.9 | |||
2003 | 1.8 | 4.9 | 3.1 | |||
2004 | 2.4 | 7.6 | 5.2 | |||
2005 | 2.7 | 11 | 8.3 | |||
2006 | 3 | 14.6 | 11.6 | |||
2007 | 4.6 | 17.3 | 12.7 | |||
2008 | 5.5 | 18.7 | 13.2 | |||
2009 | 11 | 28.5 | 17.5 | |||
2010 | 16 | 42.4 | 26.4 | |||
2011 | 11 | 19.4 | 8.4 | |||
Total | 58.6 | 167.9 | 109.3 | |||
2002-2011 | ||||||
DPO | 35% | |||||
EPS increase (sen) | 15.9 | |||||
Return on retained earnings | 15% |
Maybank - Return on Retained Earnings
Maybank
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2003 | 31.4 | 39.4 | 8 | |||
2004 | 30.6 | 47.7 | 17.1 | |||
2005 | 53.7 | 47.6 | -6.1 | |||
2006 | 43.3 | 52.2 | 8.9 | |||
2007 | 41.3 | 57.8 | 16.5 | |||
2008 | 32.1 | 58.3 | 26.2 | |||
2009 | 6 | 33.5 | 27.5 | |||
2010 | 41.3 | 53.9 | 12.6 | |||
2011 | 45 | 59.5 | 14.5 | |||
Total | 324.7 | 449.9 | 125.2 | |||
2003-2011 | ||||||
DPO | 72% | |||||
EPS increase (sen) | 20.1 | |||||
Return on retained earnings | 16% |
LPI - Return on Retained Earnings
LPI
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2002 | 9 | 14.4 | 5.4 | |||
2003 | 9 | 17.6 | 8.6 | |||
2004 | 10.8 | 25.8 | 15 | |||
2005 | 34.6 | 32.3 | -2.3 | |||
2006 | 32.4 | 33.8 | 1.4 | |||
2007 | 48.2 | 38 | -10.2 | |||
2008 | 48.8 | 45.1 | -3.7 | |||
2009 | 40.5 | 54.5 | 14 | |||
2010 | 26.5 | 62.3 | 35.8 | |||
2011 | 70 | 70.13 | 0.13 | |||
Total | 329.8 | 393.93 | 64.13 | |||
2002-2011 | ||||||
DPO | 84% | |||||
EPS increase (sen) | 55.7 | |||||
Return on retained earnings | 87% |
Public Bank - Return on Retained Earnings
Public Bank
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2002 | 9.5 | 25.5 | 16 | |||
2003 | 9.9 | 30 | 20.1 | |||
2004 | 42.8 | 36.2 | -6.6 | |||
2005 | 48.3 | 40.7 | -7.6 | |||
2006 | 37.9 | 47.8 | 9.9 | |||
2007 | 45.5 | 60.7 | 15.2 | |||
2008 | 56.7 | 69.5 | 12.8 | |||
2009 | 40.1 | 71.9 | 31.8 | |||
2010 | 37.2 | 87 | 49.8 | |||
2011 | 46.8 | 99.5 | 52.7 | |||
Total | 374.7 | 568.8 | 194.1 | |||
2002-2011 | ||||||
DPO | 66% | |||||
EPS increase (sen) | 74.0 | |||||
Return on retained earnings | 38% |
Padini - Return on Retained Earnings
Padini
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2002 | 0.2 | 1 | 0.8 | |||
2003 | 0.5 | 1.6 | 1.1 | |||
2004 | 0.6 | 1 | 0.4 | |||
2005 | 1.1 | 2.6 | 1.5 | |||
2006 | 1.4 | 4.4 | 3 | |||
2007 | 2.2 | 4.8 | 2.6 | |||
2008 | 2.7 | 6.3 | 3.6 | |||
2009 | 2.7 | 7.5 | 4.8 | |||
2010 | 3 | 9.3 | 6.3 | |||
2011 | 4 | 11.5 | 7.5 | |||
Total | 18.4 | 50 | 31.6 | |||
2002-2011 | ||||||
DPO | 37% | |||||
EPS increase | 10.50 | |||||
Return on retained earnings | 33% |
Wednesday 29 August 2012
Nestle - Return on Retained Earnings
Nestle
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2002 | 98.5 | 63.2 | -35.3 | |||
2003 | 70.2 | 81.5 | 11.3 | |||
2004 | 75.2 | 94 | 18.8 | |||
2005 | 80.2 | 114 | 33.8 | |||
2006 | 95 | 113 | 18 | |||
2007 | 100 | 124.5 | 24.5 | |||
2008 | 190 | 145.4 | -44.6 | |||
2009 | 130 | 150 | 20 | |||
2010 | 150 | 166.9 | 16.9 | |||
2011 | 170 | 194.6 | 24.6 | |||
Total | 1159.1 | 1247.1 | 88 | |||
2002-2011 | ||||||
DPO | 0.93 | |||||
EPS increase | 131.40 | |||||
Return on retained earnings | 149% | |||||
Guinness - Return on Retained Earnings
Guinness
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2002 | 27.4 | 24 | -3.4 | |||
2003 | 28.1 | 25.8 | -2.3 | |||
2004 | 30.4 | 32.6 | 2.2 | |||
2005 | 30.1 | 35.7 | 5.6 | |||
2006 | 30.2 | 42.4 | 12.2 | |||
2007 | 32.9 | 37.3 | 4.4 | |||
2008 | 36.4 | 41.7 | 5.3 | |||
2009 | 41 | 47 | 6 | |||
2010 | 45 | 50.5 | 5.5 | |||
2011 | 54 | 60 | 6 | |||
Total | 355.5 | 397 | 41.5 | |||
2002-2011 | ||||||
DPO | 0.90 | |||||
EPS increase | 36.00 | |||||
Return on retained earnings | 87% |
Genting Malaysia - Return on Retained Earnings
Genting Malaysia (GENM)
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | |||
2002 | 2.3 | 11 | 8.7 | |||
2003 | 2.5 | 9.2 | 6.7 | |||
2004 | 2.6 | 13.6 | 11 | |||
2005 | 3 | 15.4 | 12.4 | |||
2006 | 3.7 | 17 | 13.3 | |||
2007 | 4.2 | 19.2 | 15 | |||
2008 | 4.8 | 24 | 19.2 | |||
2009 | 5.3 | 23.4 | 18.1 | |||
2010 | 5.9 | 23.8 | 17.9 | |||
2011 | 6.2 | 25.22 | 19.02 | |||
Total | 40.5 | 181.82 | 141.32 | |||
2002-2011 | ||||||
DPO | 0.22 | |||||
EPS increase | 14.22 | |||||
Return on retained earnings | 10% | |||||
Petronas Dagangan - Return on Retained Earnings
Petronas Dagangan
(Figures are in sens)
(Figures are in sens)
Year | DPS | EPS | Retained EPS | ||||
2003 | 10.8 | 15 | 4.2 | ||||
2004 | 7.2 | 19.2 | 12 | ||||
2005 | 10.8 | 21.2 | 10.4 | ||||
2006 | 14.4 | 50.9 | 36.5 | ||||
2007 | 21.9 | 64.5 | 42.6 | ||||
2008 | 33.5 | 66.6 | 33.1 | ||||
2009 | 36 | 58.3 | 22.3 | ||||
2010 | 63.8 | 75.8 | 12 | ||||
2011 | 75 | 87.6 | 12.6 | ||||
Total | 273.4 | 459.1 | 185.7 | ||||
From 2003-2011 | |||||||
DPO | 0.60 | ||||||
EPS increase | 72.60 | ||||||
Return on retained earnings | 39% |
The Magic of Dutch Lady: Measuring management's ability to profitably allocate earnings.
Depicted below are the 12 years financial statistics of Dutch Lady.
Dutch Lady
Dutch Lady
Date DPS EPS Retained EPS
1999 0 15.9 15.9
2000 4.5 21.7 17.2
2001 5.8 18.7 12.9
2002 5.8 23.7 17.9
2003 12.8 24.2 11.4
2004 56 26.6 -29.4
2005 63.2 42.4 -20.8
2006 63.2 67.3 4.1
2007 42.1 73.8 31.7
2008 65.6 66.6 1
2009 72.5 94.4 21.9
2010 72.5 119 46.5
Total 464 594.3 130.3
1999-2010 | |||||
DPO | 0.78 | ||||
EPS increase | 103.1 | ||||
Return on retained earnings | 79.1% |
We can observe that for the last 12 years (year 1999 to year 2010), the management of Dutch Lady:
1. has earned a total of 594.3 sen per share
2. has distributed a total of 464 sen per share, giving a DPO ratio of 78.1%.
3. has retained a total of 130.3 sen per share as retained earnings.
4. has increased its EPS by 103.1 sen per share ( 119 - 15.9 = 103.1) from 1999 of 15.9 sen per share to 119 sen per share in 2010.
How do we as investors measure a company and its management's ability to profitably allocate (unrestricted) earnings?
We can do this by taking the per share earnings retained by a business for a certain period of time, then compare it to any increase in per share earnings that occurred during this same period.
Thus, the management of Dutch Lady has used the retained EPS of 130.3 sen per share to grow its earnings by 103.1 sen per share from 1999 to 2010..
Therefore, the management of Dutch Lady has earned a 79.1%( = 103.1 / 130.3) return in 2010, on the 130.3 sen a share that Dutch Lady retained from the year 1999 to 2010.
Even if we have no idea of the business of Dutch Lady, we can still safely conclude that Dutch Lady has done a great job of profitably allocating its retained earnings.
This test is not perfect. One must be careful that the per share earnings figures used are not aberrations. One has to make sure that the per share figures used are indicative of any real increase or decrease in earning power.
The advantage to this test is that is gives you, the investor, a really fast method of determining whether or not a company and its management have the ability to allocate retained earnings in a fashion that increases the wealth of the company's shareholders.
Sunday 26 August 2012
Investing for the Long Run - An approach
Investment objectives.
1. I am looking at a 10 year time horizon in this investment.
2. My objective is to grow my initial capital 400% in 10 years, that is, doubling at the 5th year and quadrupling at the 10th year.
3. The sum invested will be a big sum of meaningful amount (a fat pitch).
What stock to buy?
1. Good quality growth stock, with durable competitive advantage and economic moat.
2. Revenue and earnings growing at >15% per year, that are predictable and sustainable.
3. ROE > 15% per year.
4. FCF +++
5. Good management with integrity
When to buy?
1. When the stock price is compelling, that is, undervalued.
2. A low buying price translates into higher returns on the invested amount.
Thursday 16 August 2012
Getting Rich with Dividends: 3 Tips to Improve Returns With Dividend Stocks
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