我的股票分析-PowerRoot.

MAA and Melewar doesn't seems to be a good speculation stock anymore. Ignore with forever.
Today I am going to analyst here my all time favorite consumer stocks-Power Root.

PowerRoot I start my analysis starting from year 2008.

PowerRoot 2008-2011
Financial Year/Feb	2008	2009	2010	2011
ROIC
Sales(m)	178.48	138.15	153.11	182.44
EPS	0.14	0.03	0.03	0.04
Gross Profit Margin	26.69%	5.62%	8.48%	8.12%
Net Profit Margin	22.00%	7.06%	6.65%	6.69%
Free Cashflow (,000)	(18.26)	2.41	20.61	-4.17
BVPS	0.66	0.65	0.64	0.60
Longterm Debts (,000)	16.87	3.07	3.25	3.64
Debts Ratio	(0.92)	1.27	0.16	(0.87)
TL/E	0.22	0.17	0.17	0.23
Piotroski Test
ROA

What I look for normally when analyzing a company is the management style, it's accounting book health and finally it's dividend.
Management style wise, all the year it has been quietly building its business in local market, and recently it expand very fast. With many advertisement starting 2009, Alicafe is one of the most well known brand in Malaysia, especially with the local Malay ethnic market. And in Chinese market, it has the famous Hongkong TVB star 'Lum Fung' as its brand ambassador. A very tactical move after another competitor Super has JJ Lim from Singapore as their brand ambassador.

Product wise, it has multiple types of product to suit different person's needs especially the coffee which it stakes especially for Men-Tongkat Ali, and another for women.


Well, product aside, let's have a look at company's financial health.
From the report I gather, Net profit 2010 is RM10.18million, 2011 will be RM12.213million,
Longterm liabilities is 3.64m in 2011, total liabilities 44.83m.
Cash available as seen in balance sheet is 47.95m.
So to say, it is very healthy as longterm liabilities low, and Total liabilities/NetProfit=3.6, meaning it can pay back all liabilities in 3.6 years time using all its net profit coming years, even without using its available cash in bank.


Another important thing I look at is the dividend payout pass few years-5 years to be good.
The reason for this is simple, I think companies that are making money with ample cash left over should pay some good dividend to their shareholders provided they have no plan to expand more in coming near term. If a company make lots of money and refuses to payout good dividend and yet have a very low liabilities concern, I think shareholders should be very careful about this type of management.


Anyway, below is dividend payout by PowerRoot pass few years.

2010	0.08	14.55%
2009	0.04	7.27%
2008	0.04	7.27%

It payout quite generously last year because its sales hit beautifully. Hopefully more dividend to come in future and also 2011. But we assume lesser just to be conservative. Looking at 2008 and 2009, it still payout RM0.04 to shareholders. With current price at RM0.55, I think it is a good buy to keep for future. To look at sustainability of dividend payment of a company, look especially year 2007,2008. The reason is because recession come during that few years, if company is in healthy position, dividend normally will remain stable. Thus looking at this point, I believe the company can still support their dividends years to come. A 7% above dividend I consider very good in Malaysia stock market.