AUSTRALIAN COMPANY NEWS BITES
STOCK REPORT
Cochlear Limited (ASX:COH), Australia's 3rd largest health care company by market capitalisation, dipped $1.01 (or 1.4%) to close at $69.43, ending a two-day streak of rises. Compared with the All Ordinaries Index, which fell 44.6 points (or 0.9%) on the day, this was a relative price change of -0.6%. The volume was 1.1 times the average trading of 221,059 shares.
RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS
Bullish Signals:
Valuation
- Dividend Yield of 1.7% (based on trailing 12 months dividends of $1.20) versus sector average of 1.3% and market average of 2.8%.
Performance
- Return on Equity of 14.8% versus sector average of 8.2% and market average of 8.9%.
- Return on Assets of 8.1% versus sector average of 4.3% and market average of 1.8%.
- Return on Capital Employed of 17.4% versus sector average of 11.3% and market average of 9.7%.
- Interest cover defined by EBIT/I is 17.8 times. This indicates it is less leveraged.
Bearish Signals:
Valuation
- Price/Earnings of 69.7 versus sector average of 31.5 and market average of 21.0. We estimate the shares are trading at a current year P/E of 80.2 and a forward year P/E of 92.3.
- Price/Sales of 5.1 versus sector average of 1.5 and market average of 1.4. We estimate the shares are trading at a current year Price/Sales of 4.9 and a forward year Price/Sales of 4.8.
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 5.6. Compared with the rest of the market the stock is overvalued and ranks in the bottom 6% of stocks by value of Q Ratio.
Description | Value | Rank In Market |
Earnings Yield % | 1.4 | In Bottom 7% |
Price Earnings | 69.7 | In Bottom 2% |
Price to Book Value | 22.2 | In Bottom 1% |
RELATIVE VALUATION INDICATORS [RVI] TECHNICALS
- Compared with the All Ordinaries Index which fell 1.2% for the week, this represented a relative price decrease of 0.9% for the week.
- In the Australian market of 1,230 stocks and 60 units traded today, the stock has a 6-month relative price strength of 49 (it has underperformed 51% of the market).
Beta: The Beta of this stock is 0.4. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
Volume: there were 249,870 shares worth $17.3 million traded.
% Discount to high: it is at a discount of 16.2% to the 12-month high of $82.87 (traded on 29 Jan, 2013).
% Premium to low: it is at a premium of 23.2% to the 12-month low of $56.37 (traded on 12 Mar, 2012).
- The present value of $1,000 (PV$1000) invested one year ago is $1,173 [vs $1,197 for the All Ordinaries Index], including a capital gain of $149 and dividend reinvested of $24. The total return to shareholders for 1 year is 17.3%.
PV$1000 | 1-week | 1-month | 1-year |
COH.ASX | $979 | $856 | $1,173 |
Oversold/Bullish/Support Signals
- The Stochastic indicator of 11.7 has pierced the oversold line of 20.
Description | Value | Rank In Market |
MCap | US$4.1 billion | In Top 5% |
Stochastic | 11.9 | Bullish |
Volatility % | 1.9 | In Top Quartile |
SIGNIFICANT DOWNTREND
- In the Australian Short Selling market of 418 stocks, short selling (on ASX and CHI-X) as a % of issued shares ranked 50th and within the top quartile of stocks. This means it was higher than market average of 0.06%, a bearish ind
