Wednesday, April 22, 2015

Retail Sector

In terms of total assets under the retail sector, CAL is the smallest. It has 1.6 B total assets as of Sept 2014. RRHI is the leader with 57.4 B; followed by PGOLD, 53.6 B; SSI, 15.1 B, and SEVN, 7.8 B. 



In terms of earnings per share (EPS), on the basis of September 2014 quarterly report, CAL is the highest considering its small total assets compared to its competitors. ITS EPS was 0.22. Others have the following EPS:

RRHI - 2.60

PGOLD - 1.63

SSI - 0.29

SEVN - 1.91


Concerning debt to equity ratio [D/E (x)], RRHI is the most conservative followed by PGOLD. Their balance sheet is very strong. SSI is the weakest.


RRHI - 0.39

PGOLD - 0.56

SSI - 2.96

SEVN - 1.39

CAL - 0.96


How about price to book value ratio [P/BV (x)]? I think CAL is the most fairly valued with 1.52. SEVN is overpriced with 15.59. RRHI's P/BV is 2.92, PGOLD's is 3.18, and SSI's is 8.58.


Again, when it comes to price to earnings ratio [P/E (x)], CAL is the cheapest stock with 15.86. SEVN is the most expensive, 58.63. RRHI has a 32.15 P/E ratio, PGOLD has 24.20, and SSI has 34.13.


When it comes to return on equity (ROE), SEVN is the highest with 26.90% followed by SSI with 17.62%. PGOLD has the 3rd highest ROE with 13.20%. CAL is the 4th with 9.65%. RRHI has 9.53% ROE.

Finally, concerning dividend yield, PGOLD is the first with 0.50% followed by RRHI with 0.49% and SEVN with 0.26%. Both CAL and SSI have no dividend yield. CAL stopped paying dividend last 2014. And SSI was just publicly listed last November 7, 2014. 

On the basis of these numbers, CAL will be the best choice for investment. However, since its financial report for 2014 is still not available, its better to wait first to know the firm's financial standing as of 2014. Once the report is released and shows an unfavorable outcome, the next investment option in retail sector would either be RRHI or PGOLD. As for me, I will go for RRHI provided that both its P/BV and P/E ratios will go down a little bit.      


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