Vicom Ltd. – Value Analysis (SINGAPORE:V01) : December 28, 2017

Capitalcube gives Vicom Ltd. a score of 66.

Our analysis is based on comparing Vicom Ltd. with the following peers – Chasen Holdings Limited, Tritech Group Limited, Comfortdelgro Corporation Limited and SP Corp. Ltd. (5NV-SG, 5G9-SG, C52-SG and AWE-SG).

Investment Outlook

Vicom Ltd. has a fundamental score of 66 and has a relative valuation of OVERVALUED.

Fundamental Score

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Company Overview

  • From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
  • It currently trades at a Price/Book ratio of (3.62).
  • V01-SG‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • V01-SG‘s relatively high profit margins are burdened by relative asset inefficiency.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • V01-SG‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • While V01-SG‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • The company’s level of capital investment suggests it might be under-investing in a business with above median returns.
  • V01-SG currently does not have any debt.

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Leverage & Liquidity

V01-SG currently does not have any debt.

  • We consider the company to have a Quick & Able profile as it currently does not have any debt. In comparison, the median level of debt as percent of enterprise value for its peer group is currently 7.59%.
  • Of the 4 chosen peers for the company, only 3 of the stocks have an outstanding debt balance. Companies with no debt include AWE-SG.

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Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Chasen Holdings Limited 57.09 1.4 6.12 39.21
Tritech Group Limited 40.44 1.13 -0.6 -16.95
Comfortdelgro Corporation Limited 7.59 1.16 36.78 205.13
SP Corp. Ltd. 0 5.26 No interest exp 999
Vicom Ltd 0 4.18 No interest exp 999
Peer Median 7.59 1.4 36.78 205.13
Best In Class 7.59 5.26 No interest exp 999

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Company Profile

Vicom Ltd. Is an investment holding company which engages in the provision of motor evaluation and other related services. It specializes in the testing services which covers motor vehicle inspection, non-vehicle testing, inspection, consultancy solutions, emission test laboratory, motor insurance, road tax renewal, and other. The company was founded in 1981 and is headquartered in Singapore.

Disclaimer

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