Author: Mohamad Jeffrey Ismail | Publish date: Fri, 3 Jun 2016, 06:36 AM
About
| For over 40 years the Favelle Favco Group has been driving crane technology forward and pushing the envelopes of tailor made, high speed heavy lifting. Comprising of 2 international brands, Favelle Favco and Kroll, the group is home of the largest hammerhead crane in the world, the Kroll K10,000 and the largest luffing tower crane in the world, the Favelle Favco M2480. Our reputation for building the world's fastest cranes has cemented our position in the market for super high-rise buildings, having constructed 9 out of 10 of the worlds tallest buildings ever built. Our full range of cranes includes Offshore, Tower, Wharf and Crawler Cranes. We have 4 manufacturing facilities with a total workforce of approximately 700 teammates spanning the globe. This global structure allows us to build these heavy lift cranes as close to the delivery point as economically feasible. Ultimately, the underlying asset driving Favelle Favco Group is the wealth of experience in our dedicated people. These experiences allow us to create tailor made solutions for all your demanding requirements |
Fundamental Value Analysis
Comments : 5 Years performance shows strong revenue as well as net profit. Cash from operating activities are also higher than net income except FY2012.
Comments : 5 Years performance shows healthy balance sheet of the company. Current ratio of 1.47 (Warren Buffet prefer current ratio of 1.5) as well lowering debt to equity ratio reveal good debt management from the company.
Comments : 5 Years performance shows strong earnings generated by the company. Free Cash Flow to Equity (FCFE) ratio also increasing from 2012 indicate good return of earnings to shareholder's equity.
Curent Year Prospects 2016
DCF VALUATION
Price : RM2.50
Discount rates : 12%
| Growth Rates | Fair Value | Margin of Safety |
|---|---|---|
10%
|
RM5.41
|
53%
|
7%
|
RM4.40
|
43 %
|
5%
|
RM3.84
|
34%
|
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. Currently, I do not have position in this stock.
