Jan. 17- MARC 3Q with the application of Graham's Multiple

*Below presentation is patterned after the format from Immovable as a mountain blog

Marcventures Q3 2012

assets: 2.731 billion pesos
liabilities: 506.67 million pesos
equity attributable to parent company: 2.224 billion pesos
paid-up capital: 1.735 billion pesos
cash and cash equivalent: 22.59 million pesos
retained earnings: 379.39 million pesos

Total current asset: 146,757,424

revenue 9 months 2012: 254.8  million pesos
revenue 9 months 2011: 177.2 million pesos
% change: 43.7 %

Advantage point: Nickel price to recover. Consider that 2011 numbers taken only from August (1Q operation)

net income 9 months 2012: 184.8million pesos
net income 9 months 2011: 124.0 million pesos
% change: 49%

last closing price (17-01-2013): 1.88 pesos
earnings per share (annualized): 0.142 centavos
trailing price-earnings ratio: 13.2 x
book value per share: 1.28 pesos
price/book value: 1.47x
return on equity: 11%
return on assets: 9%
net income margin: 72.5 % 

A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.

*It gives an earning of 72.5 cents for 1 peso of sales

current ratio: 5.4 

an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point

debt-to-equity: 0.227 

A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

^{Applying Graham's Multiple:}

PE= 13.2

P/ B.V= 1.47x

PE X B/V= 19.40

Expensive Multiple as per Graham is 22.5

Now I would like to see a potential profit margin using this multiple

22.5 as expensive...

Hence, 19.4 still has a % upside to reach Graham's expensive level. 

Current price is 1.88 + 16% is 2.18 pesos target until proven otherwise by 4Q numbers. Should the numbers in 4Q improve, a lower PE and B/V will further increase a profit margin towards 22.5

See the chart for yourself for the imminent trend shift

Caveat