MODERN: A historical comparison
Another example analysis using our new Historical database has been performed below. MODERN has been analysed and compared for the periods of 1991-1993 to 2002-1H2004.
Modern has been a long time favorite of Thaistocks.com, and will likely continue to be into the future. The company has an attractive dividend yield of 8.5% and a realistic PE ratio of 10.3. Modern produces high quality office and residential furniture, the immediate sales outlook is positive according to a recent Kim Eng research report. Speculators tend to stay away from Modern due to its lower liquidity, this makes the company an ideal long term investment for value investors.
Modern’s Managing Director has stated to Thaistocks.com in the past that the company usually does best in the mid stages of a bullish economic cycle.
The analysis below was done using data from the Thaistocks.com historical database and using Modern’s most recent financial highlights located at its home page (www.modernform.com).
Modern first started producing substantial revenues in 1991, this is the beginning year for the analsis. Please make a note that the results for 2004 only include the first 6 months of the year. The results are in millions of baht (MB).
Going over the results and ratios, it is evident that Modern was in a very strong financial position in the early 90’s. Profit margins were much higher in the early 90’s than they are now. This is likely due to increased competition Modern is facing today.
Return on Assets, Return on Equity and Earnings per share were all much more attractive in the early 1990’s compared to now. As a result, investors have placed a much lower premium on Modern’s current earnings. The current PE ratio is 10.3 compared to 28 and 24 in 1993 and 1992.
Modern’s current dividend yield is approximately 3 times larger now than in the early 1990’s. The current dividend yield is a main attraction for value investors, especially in today’s low interest rate climate.
Over time, we will be analyzing more companies in our database. Thaistocks members can download the entire database by going to our DOWNLOADS section.
|
|
2004 (6mths) |
2003 |
2002 |
1993 |
1992 |
1991 |
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|
Total revenues |
MB. |
1,345 |
2,267 |
1,911 |
1,394 |
1,093 |
1,076 |
|||
|
Gross profit |
MB. |
398 |
690 |
543 |
548 |
376 |
394 |
|||
|
Net Profit |
MB. |
123 |
203 |
96 |
246 |
248 |
217 |
|||
|
Total assets |
MB. |
2,841 |
2,656 |
2,479 |
1,867 |
1,511 |
819 |
|||
|
Total liabilities |
MB. |
780 |
601 |
438 |
552 |
266 |
325 |
|||
|
Net worth |
MB. |
2,061 |
2,054 |
2,042 |
1,315 |
1,245 |
494 |
|||
|
Gross profit margin |
% |
31% |
31.9% |
30.3% |
39.3% |
34.4% |
36.6% |
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|
Net profit margin |
% |
9.6% |
9.4% |
5.4% |
17.6% |
22.7% |
20.2% |
|||
|
ROA |
% |
4.5% |
7.9% |
3.9% |
13.2% |
16.4% |
26.5% |
|||
|
Return on Equity |
% |
6% |
9.9% |
4.8% |
18.7% |
19.9% |
43.9% |
|||
|
EPS |
B/S |
1.5 |
2.5 |
1.2 |
7.67 |
8.27 |
8.51 |
|||
|
Debt / Equity |
T |
0.4 |
0.3 |
0.2 |
0.42 |
0.21 |
0.66 |
|||
|
Inventory Turnover |
D |
72 |
72 |
74 |
95 |
79 |
74 |
|||
|
A/R Turnover |
D |
68 |
65 |
66 |
36 |
51 |
46 |
|||
|
P/E Ratio |
T |
10.3 |
12.7 |
26.8 |
28.16 |
23.94 |
- |
|||
|
Dividend Yield |
% |
8.5 |
7 |
6.2 |
2.55 |
2.53 |
- |
|||
|
Book Value/Share |
B/S |
25.2 |
24.8 |
24.6 |
44.16 |
41.5 |
19.38 |
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Best Regards,
Thaistocks.com
