Roxas Holdings, Inc.: Strong price momentum but will it sustain?

Roxas Holdings, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 41.

Our analysis is based on comparing Roxas Holdings, Inc. with the following peers – Bogo-Medellin Milling Co., Inc., Roxas & Co., Inc. and Khon Kaen Sugar Industry Public Co. Ltd. NVDR (BMM-PH, RCI-PH and KSL.R-TH).

Roxas Holdings, Inc. has shown underwhelming performance over the last one year while growing strongly over the last month. Roxas Holdings, Inc.’s price momentum over the last month, at 17.86% has been better than that over the last year, which was -27.47%. Also from a peer group perspective, Roxas Holdings, Inc. has performed better, since the peer group performance was 11.34% over the last month.

Company Snapshot

  • Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.
  • It trades at a lower Price/Book multiple (0.49) than its peer median (0.98).
  • The market expects faster earnings growth from ROX-PH than from its peers and also a turnaround in its current ROE.
  • ROX-PH has relatively low profit margins and median asset efficiency.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • ROX-PH‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • The company’s relatively low gross and pre-tax margins suggest a non-differentiated product portfolio and not much control on operating costs relative to peers.
  • Compared with the peers chosen, ROX-PH has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
  • ROX-PH seems too levered to raise additional debt.
  • Our analysis rates Roxas Holdings, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.

ROX-PH‘s share price performance of -27.47% over the last 12 months is below its peer median but its 30-day trend in share price performance of 17.86% is better than the peer median. This recent rising stock price may herald a change in relative share price performance.

Share Price Performance

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Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Roxas Holdings, Inc.’s price of PHP 3.30 is lower than CapitalCube’s implied price of PHP 4.99. CapitalCube believes that at these levels, Roxas Holdings, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between PHP 2.50 and PHP 4.80.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Roxas Holdings, Inc. produces sugar and ethanol in the Philippines. It operates through the following segments: Central Azucarera Don Pedro, Inc., RHI, Central Azucarera de la Carlota, Inc., Roxol Bioenergy Corp., San Carlos Bioenergy, Inc. and Others. The RHI segment is a diversified holding and investment corporation with specific focus on sugar milling and refining business. The Central Azucarera Don Pedro, Inc. segment is engaged in the business of producing, marketing and selling raw and refined sugar, molasses and other related products or by-products and offers tolling services to traders and planters. The Central Azucarera de la Carlota, Inc. segment produces raw sugar and molasses and trades the same on wholesale & retail basis. The Roxol Bioenergy Corp. segment engage in the business of producing, marketing and selling of bioethanol fuel, both hydrous and anhydrous products from sugarcane and related raw materials. The San Carlos Bioenergy, Inc. segment was acquired to expand the business of producing, marketing and selling bio-ethanol fuel, both hydrous and anhydrous, products from sugar cane and related raw materials, and renewable and alternative energy sources. Others segment pertain mainly to consultancy business, dealer and trader of agricultural products and subsidiaries with no operations yet. The company was founded in 1927 and is headquartered in Makati, Philippines.

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