DCC: A historical comparison
Dynasty Ceramics is analyzed below by looking at the financial results and ratios of two comparable time periods. The first time period from 1991 to 1993 is right in the middle of the last bull market period (before the excess period of 1994 to 1996). The second time period is 2001 to 2004, the current bullish period.
Looking at the revenue figures, DCC today is a much more established company. As with the other financial comparisons so far, DCC has a much lower PE ratio these days when compared to the early '90's. DCC has many of the same attributes as other favourites here at Thaistocks.com. A low PE ratio, a nice dividend yield and strong earnings growth.
One interesting note that is apparent in the analysis below is a debt problem that DCC first started having signs of in the early '90's. The Net Debt/equity ratio grew in 1991 to 1993. We know from information posted in the forum today by Paul Renaud that DCC's debt situation worsened going into the financial crisis, and eventually they had to convert a large amount of debt to equity. It is those same ex-debt turned equity holders that are selling and depressing the stock price today. Please refer to our member forum for a timely and complete explanation from Paul. It is interesting how a problem that first could be identified in the early '90's is still affecting the company today.
A reassuring confirmation that the debt problem is now corrected is the Net Debt to Equity ratio performance from 2001 to 2004 where it improves each year.
Overall, DCC is a much stronger and efficient company today than it was in the early 1990's.
|
|
2004F |
2003 |
2002 |
2001 |
|
1993 |
1992 |
1991 |
|
|
Sales (Btmn) |
3,970 |
3,165 |
2,251 |
1,585 |
|
391 |
340 |
333 |
|
|
EBITDA (Btmn) |
1,420 |
969 |
652 |
365 |
|
137 |
118 |
150 |
|
|
Earnings (Btmn) |
787 |
502 |
364 |
175 |
|
15 |
45 |
43 |
|
|
Gross Margin (%) |
35.77% |
30.62% |
28.96% |
23.03% |
|
35.04% |
34.71% |
45.05% |
|
|
Net Margin (%) |
19.82% |
15.86% |
16.17% |
11.04% |
|
3.84% |
13.24% |
12.91% |
|
|
EPS (Bt) |
1.93 |
1.23 |
0.89 |
0.43 |
|
0.9 |
2.64 |
2.93 |
|
|
PER (x) |
8.4 |
13.2 |
18.2 |
37.8 |
|
35.83 |
14.2 |
- |
|
|
BVPS (Bt) |
5.2 |
3.9 |
3.3 |
3 |
|
19.51 |
19.62 |
19.48 |
|
|
P/BV (x) |
3.1 |
4.2 |
4.9 |
5.5 |
|
1.65 |
1.91 |
- |
|
|
Dividend yield (%) |
8.30% |
4.00% |
3.60% |
2.70% |
|
- |
5.33% |
- |
|
|
Net debt/equity (x) |
0.28 |
0.69 |
0.81 |
0.84 |
|
2.45 |
1.97 |
0.84 |
|
|
ROA (%) |
23.70% |
16.40% |
13.90% |
7.50% |
|
1.33% |
4.54% |
7.09% |
|
|
ROE (%) |
42.60% |
34.10% |
28.40% |
15.30% |
|
4.59% |
13.45% |
13.03% |
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