Philippine Stock Picker - Choose the Best Stocks
Looking for the best stocks to buy? Top 10 dividend growth stocks? Best performing stocks for the past 5yrs? Use this up-to-date fundamental analysis tool for the Philippine Stock Market.
- A "buy" rating means that the consensus recommends you to purchase the stock because the stock is currently undervalued or there is a good projection of the company's performance.
- A "sell" rating means that the consensus believes the price of the stock will go much lower in the near future so it's better to sell it now.
52 Week Range
- Where the price now is relative to its lowest and highest traded prices during the past one-year period from the current date. Many investors use this as a good indicator to see whether the stock is trading on its higher or lower range. Some also use this to predict the price movement of the stock in the near future.
- The price the stock was recently traded.
- It is the 'fair value' or an estimate of a company's worth. There are several ways to calculate the intrinsic value of the company which usually takes into account future projection of growth, profits, expansions, risks, etc. For some investors, the fair value is also considered as their 'target value', the price which they will eventually sell their stocks for in the future.
Average Dividend Yield (5 years)Dividend Yield = (Annual Dividend / Current Stock Price) x 100%.
A part of the company's profit is usually paid back to stockholders in the form of a dividend (either through cash or shares). Since the dividend yield varies every year, the 5-year average is a good way to estimate how big or small the company pays out dividends in the previous years.
In 2010: Dividend = ₱0.3, Price/Share = ₱11.00, Dividend Yield = 2.5%
In 2011: Dividend = ₱0.5, Price/Share = ₱12.00, Dividend Yield = 3.125%
In 2012: Dividend = ₱0.8, Price/Share = ₱18.00, Dividend Yield = 5%
In 2013: Dividend = ₱0.4, Price/Share = ₱7.00, Dividend Yield = 2.5%
In 2014: Dividend = ₱0.6, Price/Share = ₱16.00, Dividend Yield = 3%
Therefore, for the years 2010-2014, the average dividend yield is (2.5% + 3.125% + 5% + 2.5% + 3%) / 5 years = 3.225%.
Dividend Growth 5 Years
- The annualized percentage rate of growth of a particular stock's dividend over a period of 5 years. A positive value means that the dividend yield that a company paid to its stockholders has increased for the past 5 years.
- If you want to receive the dividend, make sure that you own some stocks of that company before the ex-date. For example, the ex-date is Dec. 15, and you bought stocks on Dec. 14, then you are entitled for the dividend. If you buy shares on Dec. 15 or after, then you are not included.
Earning Per Share (EPS)
- A good way to evaluate how profitable a company is. You can easily compute the EPS by simply dividing the profit by the total number of outstanding shares. For example, if the company's profit last year was ₱6 million and there were 3 million common shares, then the EPS is ₱2.
- A good stock is the one which has an increasing profitability. This simply means that the profit or earnings should have been growing compared to the previous year.
The EPS of a company was ₱6 in 2014 and ₱7 in 2015. Therefore it has an EPS growth rate of (₱7.00-₱6.00)/₱6.00 = 16.67% during fiscal year 2015.
Revenue Growth (5yr average)
- Revenue growth shows the increase in sales compared to the previous year. Since the revenue growth varies from year to year, the annualized average growth is a good indicator on how the company is growing for the past 5 years.
Net Income Growth (5yr average)- Net income = (Revenue - Expenses).
It is a good indicator whether the annualized average profits the company have been making for the past 5-years are growing or not. It is desirable for an investor to choose stocks which have at lease double digit net income growth each year.
Current P/E Ratio
- The "Price to Earnings ratio" or P/E = (current price / earnings per share).
It is one of the most common financial ratios investors take into consideration when choosing stocks. Higher P/E ratio means that the market (investors) have high expectations on the company's stock because they are willing to acquire shares at a higher cost. On the other hand, a low P/E can imply that the stock is not attractive to investors, however, it may also mean that a company is undervalued. Value investors choose undervalued (cheap) stocks with good fundamentals.
The share price of the company is ₱ 50. Over the past year the earnings were ₱2.5 per share. The P/E ratio for the stock is then computed as 50/2.5 = 20.
Return on Equity (ROE)ROE = (Net Income/Shareholder's Equity).
It measures how efficient the company is by determining how much profit is generated for every peso investment the shareholder has made. It is a good concept because it helps investors see if they're getting a good return on the money they've put in to a company. A company with at least 15% ROE is considered a good investment, but of course it's more meaningful if you compare it with other companies of the same industry.
The company has a net income of ₱6M. Its equity are ₱15M and ₱25M in the beginning and end of the year, respectively. The ROE is then [(₱6M)/((₱15M + ₱25M)/2)] = 30%.
Return on Invested Capital (ROIC)ROIC = (Net Income-Dividends) / Total Capital.
It can also be derived as the 'net income after taxes' divided by all the company funding sources. It is a more accurate measure of how well the company's management is using ALL its capital to generate more income or to grow the business. A company with higher ROIC is deemed to be a good investment.
Price-To-Book RatioP/B Ratio = Stock Price / (Total Assets - Intangible Assets and Liabilities).
It is a good way to decide whether the stock is cheap or overpriced by comparing its current price against the book value of the company (Book value = Assets - Liabilities). As a rule of thumb for some investors, if the P/B ratio is greater than 1, it means that you're paying a lot for the shares because its current price is higher than what apparently the company's assets is actually worth. In contrast, if the P/B ratio is less than 1, it suggests that you're getting a bit of a bargain when buying the shares. This fundamental ratio is useful for evaluating asset-intensive companies, especially if you're comparing firms of the same industry.
Price-To-Sale RatioP/S Ratio = Stock Price / Sales per share.
It can also be calculated as P/S Ratio = Market Capitalization / Total Sales. This is regarded as a strong fundamental indicator because it is based on Sales which cannot easily be manipulated in the financial reports. This can be used as a substitute for the P/E ratio to compare between companies of the same industry especially when some firms have no or less earnings (which can happen from time to time due to market volatility). A company with low P/S ratio is considered undervalued while those with higher P/S ratio are considered overpriced. It is a very useful, simple, easy to calculate and easy to interpret ratio but it is important to note that this ratio is dangerous if used in isolation. Hence, it should be used alongside other valuation ratios for a better assessment of companies value.