TRIPLE DOUBLE
โพสต์แล้ว: อาทิตย์ มิ.ย. 05, 2005 10:10 pm
Triple Double Stocks
Three financial indicators will be used to filter the stocks from SET, namely Return on Asset (ROA), Return on Equity (ROE) and Profit Margin (PM). Only companies having ROA, ROE and PM higher than 10% for the last 4 years and first quarter of 2005 will pass this filtering system and will be called Triple Double.
ROA and ROE are selected since they measure the management capability in efficiently utilizing the resources and capital in hand. As part of ROA and ROE in Dupont Ratio, profit margin is thus chosen as the last filter.
Dupont Ratio is determined as follows:
ROA = Profit Margin * Asset Turnover = (Profit/Sales) * (Sales/Asset)
ROE = ROA * Leverage Ratio = Profit Margin * Asset Turnover * Asset/Equity
All information published is extracted from www.set.or.th with recalculation of ROA.
There are 10 companies from nine industries exhibiting TRIPLE DOUBLE quality. They are
1. AHC
2. TPCORP
3. PTTEP
4. TAF
5. APRINT
6. SAUCE
7. TF
8. RHC
9. OGC
10. TCB
However, valuation represented by P/E and P/BV ratio on these companies is quite different reflecting different expectation. This has not come to a surprise since certain industries are considered as the sunset ones such as textile and agribusiness whereas some are still riding the crest of the wave such as oil & gas and automobile (TCB is benefited from the rise in the automobile industry though it is categorized in the petrochemical sector).
Note that this filtering system will screen out some sectors such as retail where its profit margin is razor thin, utility sector where its asset is huge.
In addition, this method is looking from the rear-view mirror, thus due diligence is required to determine the intrinsic value and margin of safety before pouring in your hard-earn money.
I would like to thank Khun Kanchit Paisarn for a valuable database. Without it, I would have to struggle a lot more than this.
Three financial indicators will be used to filter the stocks from SET, namely Return on Asset (ROA), Return on Equity (ROE) and Profit Margin (PM). Only companies having ROA, ROE and PM higher than 10% for the last 4 years and first quarter of 2005 will pass this filtering system and will be called Triple Double.
ROA and ROE are selected since they measure the management capability in efficiently utilizing the resources and capital in hand. As part of ROA and ROE in Dupont Ratio, profit margin is thus chosen as the last filter.
Dupont Ratio is determined as follows:
ROA = Profit Margin * Asset Turnover = (Profit/Sales) * (Sales/Asset)
ROE = ROA * Leverage Ratio = Profit Margin * Asset Turnover * Asset/Equity
All information published is extracted from www.set.or.th with recalculation of ROA.
There are 10 companies from nine industries exhibiting TRIPLE DOUBLE quality. They are
1. AHC
2. TPCORP
3. PTTEP
4. TAF
5. APRINT
6. SAUCE
7. TF
8. RHC
9. OGC
10. TCB
However, valuation represented by P/E and P/BV ratio on these companies is quite different reflecting different expectation. This has not come to a surprise since certain industries are considered as the sunset ones such as textile and agribusiness whereas some are still riding the crest of the wave such as oil & gas and automobile (TCB is benefited from the rise in the automobile industry though it is categorized in the petrochemical sector).
Note that this filtering system will screen out some sectors such as retail where its profit margin is razor thin, utility sector where its asset is huge.
In addition, this method is looking from the rear-view mirror, thus due diligence is required to determine the intrinsic value and margin of safety before pouring in your hard-earn money.
I would like to thank Khun Kanchit Paisarn for a valuable database. Without it, I would have to struggle a lot more than this.
