August 2024 Q&A Discussion
Added 2024-09-09 00:37:28 +0000 UTCAsk anything and I will try to answer! I may discuss the question in my YouTube if its too hard to explain in a text.
DONT ASK for STOCK RECOMMENDATIONS or BUY AND SELL TIPS
Comments
Malapit na Yan magsubmit financial report, inaantay ko lang
TheCheap Gamer
2024-10-04 19:55:21 +0000 UTCsir puede po request STI?
Pretty EpiLyn
2024-10-04 13:59:38 +0000 UTCSalamat Brod
Lee Toh
2024-09-28 02:37:21 +0000 UTCHello po ulit. Noticed that STI has reached its YoY FV and nearing quarterly FV per your latest one pager. Pwede pa po bang humingi ng updated analysis/one pager ulit? Thank you po.
Erly
2024-09-27 03:06:07 +0000 UTCokay
TheCheap Gamer
2024-09-23 02:37:34 +0000 UTCBrod, baka pede kang gumawa ng reaction video dun sa vlog ng dragonfi. https://www.youtube.com/watch?v=G8iSa4jynbU
Lee Toh
2024-09-22 11:15:50 +0000 UTCI don't like it. Too much debt and leverage. Maybe after 3-5 years when all of their infrastructures materialize.
TheCheap Gamer
2024-09-20 15:12:35 +0000 UTCAny thoughts on SMC?
andrea blas
2024-09-20 14:17:54 +0000 UTCOk
TheCheap Gamer
2024-09-19 02:00:43 +0000 UTCHello po! Updated analysis/one pager for CEB please. Thank you po.
Erly
2024-09-19 01:59:33 +0000 UTCWhat is the fiscal schedule for schools?
Louie
2024-09-18 03:00:22 +0000 UTCFair enough. Thank you!
peacemaker25
2024-09-11 19:59:03 +0000 UTCNandoon na
TheCheap Gamer
2024-09-11 19:21:03 +0000 UTCThank you master. Also, requesting whether MAC can be added in your extra ginyus tool po.
stephen.bayhon
2024-09-11 14:28:10 +0000 UTCUndervalued but I don't consider it as a priority buy for now.
TheCheap Gamer
2024-09-11 14:08:21 +0000 UTCIdol, I noticed that in your current portfolio, MVC is listed as Trimming, with the comment will buy again once it falls under fair value. Recently I checked your Extra Ginyus Tool, and TTM DC is 378.22%, while average DC is 108.76% However, quarterly discount is at -0.33%. I just wanted to pick your brain and understand your thought process. Is it because since the quarterly results are in the negative, the inference is possibly na overvalued sha currently, and the numbers are skewed by the better numbers ng annual and TTM? The growth trajectory and margin trajectory are also expanding/ growing, are those computed over the past TTM as well? Thank you.
stephen.bayhon
2024-09-11 13:43:38 +0000 UTCParang recently lang naging maganda profitability niya pero yung consistency is still questionable. And lagi din humihingi ng extension to file their financial reports lol.
TheCheap Gamer
2024-09-11 07:53:35 +0000 UTCI dont like the company. Para siyang insurance business so under siya ng financials sector and yet hindi namimigay ng dividends for the longest time. Dividend payments in financial stocks is a sign of consistent profitability and good cash liquidity. Dapat nga diyan magaling ang mga financial stocks pero in the case of NRCP, hindi niya ginagawa.
TheCheap Gamer
2024-09-11 07:50:49 +0000 UTCHindi ko na gagawan video. Nag generate ako 1 pager analysis, nasa 2Q2024 folder under Other Requested Stocks Folder.
TheCheap Gamer
2024-09-11 07:47:59 +0000 UTCokay.
TheCheap Gamer
2024-09-09 23:38:10 +0000 UTCPa request po NRCP review. Salamat!
peacemaker25
2024-09-09 04:21:53 +0000 UTCThe growth rate formula is used to calculate how much a company's key financial metrics (e.g., revenue, profit) have increased or decreased over a certain period. Here are the most common formulas for calculating growth rates: ### 1. **Revenue Growth Rate**: The **revenue growth rate** measures how much a company's revenue has grown over a specific period (usually annual or quarterly). \[ \text{Revenue Growth Rate} = \frac{\text{Current Period Revenue} - \text{Previous Period Revenue}}{\text{Previous Period Revenue}} \times 100 \] For example, if a company had $100 million in revenue last year and $120 million this year: \[ \text{Revenue Growth Rate} = \frac{120 - 100}{100} \times 100 = 20\% \] ### 2. **Profit Growth Rate**: Similar to revenue growth, the **profit growth rate** tracks the change in a company's net income or profit over a specific period. \[ \text{Profit Growth Rate} = \frac{\text{Current Period Profit} - \text{Previous Period Profit}}{\text{Previous Period Profit}} \times 100 \] If a company’s profit increased from $10 million to $15 million: \[ \text{Profit Growth Rate} = \frac{15 - 10}{10} \times 100 = 50\% \] ### 3. **Compound Annual Growth Rate (CAGR)**: CAGR is a useful way to calculate the average annual growth rate of a company’s revenue, profit, or other metrics over multiple periods (e.g., years). It smooths out year-to-year fluctuations. \[ \text{CAGR} = \left( \frac{\text{Ending Value}}{\text{Beginning Value}} \right)^{\frac{1}{n}} - 1 \] Where: - **Ending Value** is the value at the end of the period (e.g., revenue, profit, etc.). - **Beginning Value** is the value at the beginning of the period. - **n** is the number of years (or periods). For example, if a company's revenue grew from $50 million to $100 million over 3 years: \[ \text{CAGR} = \left( \frac{100}{50} \right)^{\frac{1}{3}} - 1 = (2)^{0.3333} - 1 = 0.26 \text{ or } 26\% \] ### 4. **Earnings per Share (EPS) Growth Rate**: The **EPS growth rate** measures how much the company's earnings per share have grown. \[ \text{EPS Growth Rate} = \frac{\text{Current EPS} - \text{Previous EPS}}{\text{Previous EPS}} \times 100 \] If EPS grew from $2.00 to $2.50: \[ \text{EPS Growth Rate} = \frac{2.50 - 2.00}{2.00} \times 100 = 25\% \] ### 5. **Free Cash Flow (FCF) Growth Rate**: The **free cash flow growth rate** calculates how much the company's free cash flow has increased. \[ \text{FCF Growth Rate} = \frac{\text{Current Period FCF} - \text{Previous Period FCF}}{\text{Previous Period FCF}} \times 100 \] ### In Summary: To calculate growth rates for various financial metrics, use this general formula: \[ \text{Growth Rate} = \frac{\text{Current Value} - \text{Previous Value}}{\text{Previous Value}} \times 100 \] For multi-period growth, use **CAGR** to smooth out fluctuations over time. These formulas help assess the pace of growth in different areas like revenue, profit, or cash flow.
TheCheap Gamer
2024-09-09 02:43:46 +0000 UTCTo determine if a company's dividend payout is sustainable or can be covered, you need to assess the company’s **dividend coverage ratio** and **payout ratio**. These financial ratios help evaluate whether the company generates enough profits to cover its dividend payments. ### 1. **Dividend Coverage Ratio**: The **dividend coverage ratio** indicates how many times a company's net income or cash flow can cover the dividend payment. A higher ratio suggests the dividend is more easily covered. \[ \text{Dividend Coverage Ratio} = \frac{\text{Net Income}}{\text{Dividends Paid}} \] - If the ratio is **greater than 1**, the company can comfortably cover its dividend payout. - If the ratio is **less than 1**, the company may struggle to sustain its dividend in the long run. ### 2. **Payout Ratio**: The **dividend payout ratio** shows the proportion of earnings a company is paying out as dividends. \[ \text{Dividend Payout Ratio} = \frac{\text{Dividends per Share}}{\text{Earnings per Share (EPS)}} \times 100 \] Or alternatively: \[ \text{Dividend Payout Ratio} = \frac{\text{Total Dividends Paid}}{\text{Net Income}} \times 100 \] - A **payout ratio below 50%** is generally considered safe, as the company is retaining a large portion of its earnings to reinvest or cover future dividends. - A **payout ratio above 75-80%** might indicate risk, as the company is distributing most of its earnings, leaving less room for reinvestment or to cover future downturns. - A **payout ratio over 100%** means the company is paying out more in dividends than it earns, which could be unsustainable, especially over long periods. ### 3. **Free Cash Flow (FCF) Analysis**: Another way to assess dividend sustainability is by looking at the company’s **free cash flow**, which is the cash available after operating expenses and capital expenditures. \[ \text{Free Cash Flow} = \text{Operating Cash Flow} - \text{Capital Expenditures} \] A company should have sufficient free cash flow to cover its dividend payments. If a company consistently has positive free cash flow and covers its dividends from this cash, the payout is more sustainable. ### 4. **Debt Levels**: High debt can also be a red flag. A company with significant debt obligations may struggle to maintain dividend payments, particularly if interest payments rise. ### In Summary: To determine if a company’s dividend payout can be covered: - Look for a **dividend coverage ratio** > 1. - Assess the **dividend payout ratio** (ideally below 50-60%). - Check that **free cash flow** is sufficient to cover dividends. - Consider the company’s overall financial health, including its **debt levels**. These metrics will help you evaluate if the company's dividend is sustainable over time.
TheCheap Gamer
2024-09-09 02:42:18 +0000 UTCIf you're averaging the dividend yield for **one stock** over multiple periods (e.g., months or years), you would simply calculate the **arithmetic mean** of the dividend yields for those periods. ### Formula: \[ \text{Average Dividend Yield} = \frac{\text{Dividend Yield}_1 + \text{Dividend Yield}_2 + \dots + \text{Dividend Yield}_n}{n} \] Where: - \(\text{Dividend Yield}_n\) represents the dividend yield for each period. - \(n\) is the number of periods. ### Example: If a stock has the following dividend yields over 3 years: - Year 1: 4% - Year 2: 3.5% - Year 3: 5% The average dividend yield is: \[ \frac{4\% + 3.5\% + 5\%}{3} = \frac{12.5\%}{3} = 4.17\% \] Thus, the **average dividend yield** over the three years is **4.17%**.
TheCheap Gamer
2024-09-09 02:40:51 +0000 UTCROIC (Return on Invested Capital) is a financial metric used to assess a company's efficiency at allocating capital to profitable investments. It measures the return generated on the capital invested in the business and is a key indicator of a company's ability to create value for shareholders. The formula for ROIC is: ROIC = Net Operating Profit After Taxes (NOPAT) Invested Capital ROIC= Invested Capital Net Operating Profit After Taxes (NOPAT) Where: NOPAT is the company's operating profit after subtracting taxes but before interest expenses. It reflects the core operational performance of the business. Invested Capital typically includes equity and debt financing used to run the company, such as shareholders' equity and interest-bearing debt (minus excess cash). A higher ROIC indicates that the company is efficiently using its capital to generate profits. It is often compared to the company's weighted average cost of capital (WACC) to determine if the company is generating returns above or below the cost of its capital. If ROIC > WACC, the company is creating value. If ROIC < WACC, the company is destroying value
TheCheap Gamer
2024-09-09 02:39:30 +0000 UTClet me google for you.
TheCheap Gamer
2024-09-09 02:39:26 +0000 UTCOn Fundamental Checklist, how to compute ROIC percentage? What does it mean? (The balance sheet of a stock or company is a healthy one.) How to get average dividend yield in percentage per year, and how to compute dividend cover (percentage%, then convert it to a number and see if it covers the payment for the dividend investor), and how does it affect the fundamentals (revenue, net income, free cash flow, etc.). How to get the average 5-year growth rate % (revenue, income, cash flow) Thanks. Please enlighten me on this subject.
Frozendelight
2024-09-09 02:18:37 +0000 UTCthanks for the insight.
burakdat
2024-09-09 01:37:50 +0000 UTCso i take it you dont have a filtering criteria for that
burakdat
2024-09-09 01:31:35 +0000 UTCI can't because there's too much macro economics involved on that topic. I hate macro economics stuffs. But in general, a strong peso is good for a lot of the companies here because Philippines is a net importer for the longest time. Companies who imports their raw materials would probably improve their margins. Meanwhile, companies who export their products would probably have their profits reduced. It's better to focus on individual companies because it's their management who will make the adjustments .
TheCheap Gamer
2024-09-09 01:30:57 +0000 UTCWarren Buffet invested in a lot of companies that have products and services that are not morally right to a lot of people. Does that made him a bad person? NO, it made him rich. Hahaha
TheCheap Gamer
2024-09-09 01:26:44 +0000 UTCThere's a lot of reasons why insiders change position from one company to another. Aboitiz is already an established company, it doesn't matter if 1 aboitiz steps down, the next aboitiz will step up. And if someone step down to get involved on a solar company, then obviously it's to improve the image of the company.
TheCheap Gamer
2024-09-09 01:23:44 +0000 UTCYour goal is to make profit in the stock market. Let the proper authorities handle those moral stuffs.
TheCheap Gamer
2024-09-09 01:19:30 +0000 UTCYour moral compass in investing is always subjective. Infact, if you factor in moral compass of what's ethically right or wrong, more than 90% of stocks are uninvestable. A lot of these companies are doing things that will not satisfy your moral compass. Your just unaware of it. Let's say I use SPNEC as an example. It's a clean energy blah blah blah, do you mean deforestation is okay? Where do you think the materials of solar batteries come from? Mostly is being mined from poor countries where cheap labor is being exploited.
TheCheap Gamer
2024-09-09 01:18:09 +0000 UTCCan you create a video if it is ok with you, what stocks or industries will do good when the dollar weakens over peso. ty
p3k
2024-09-09 01:03:08 +0000 UTCWhen you buy a certain stock, do you also have filtering criteria tulad ng personal beliefs and principles? Kasi po ako ako example nlng gusto ko sana bumili ng mining corporations tulad ng semirara for their dividends pero against po ako sa core ng business nila which is mining. Also po, can you do a stock check on SPNEC? From what I know, ang president ng Aboitiz Power stepped down and lumipat sa SPNEC. Bakit kaya?
burakdat
2024-09-09 00:58:36 +0000 UTC
