AUSTRALIAN COMPANY NEWS BITES
STOCK REPORT
AGL Energy Limited (ASX:AGK), Australia's largest utilities company by market capitalisation, strengthened 4.0c (or 0.2%) to close at $16.15. The volume was 3 times average trading of 1.7 million shares. Compared with the All Ordinaries Index, which rose 59.7 points (or 1.2%) on the day, this was a relative price change of -0.9%.
RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS
Bullish Signals:
Valuation
- Price/Sales of 1.2 versus sector average of 1.8 and market average of 1.4. We estimate the shares are trading at a current year Price/Sales of 1.1 and a forward year Price/Sales of 1.1.
- The Price to Book of 2.2 is lower than the average of 2.8 for the Utilities sector and 2.6 for the Total Australian Market. We estimate the shares are trading at a current year Price to Book of 1.8 and a forward year Price to Book of 1.5.
- The company is cash rich with Cash to Market Capitalisation at 20.4%
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.6. Compared with the rest of the market the stock is undervalued.
Bearish Signals:
Valuation
- Price/Earnings of 77.3 versus sector average of 42.1 and market average of 20.6. We estimate the shares are trading at a current year P/E of 81.9 and a forward year P/E of 86.8.
- Dividend Yield of 1.8% (based on trailing 12 months dividends of 29.0c) versus sector average of 6.8% and market average of 4.8%.
Performance
- Return on Equity of 1.6% versus sector average of 3.7% and market average of 9.0%.
- Total Liabilities/ EBITDA of 20.3 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.
- Return on Assets of 0.8% versus sector average of 1.3% and market average of 1.8%.
Description | Value | Rank In Market |
EBITDA Margin % | 5 | In Bottom Quartile |
P/E * P/NTA | 173.22 | In Bottom Quartile |
Earnings Yield % | 1.3 | In Bottom 7% |
Return on Equity [ROE] % | 1.6 | In Bottom 6% |
Return on Assets [ROA] % | 0.8 | In Bottom 5% |
Net Profit Margin % | 1.5 | In Bottom 5% |
Return on Capital Employed [ROCE] % | 1.7 | In Bottom 4% |
Price Earnings | 77.3 | In Bottom 1% |
RELATIVE VALUATION INDICATORS [RVI] TECHNICALS
- Compared with the All Ordinaries Index which rose 1.2% for the week, this represented a relative price increase of 5.0% for the week.
- In the Australian market of 1,214 stocks and 53 units traded today, the stock has a 6-month relative price strength of 52 (it has outperformed 52% of the market).
Beta: The Beta of this stock is 0.05. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
% Discount to high: it is at a discount of 0.6% to the 12-month high of $16.24 (traded on 04 Mar, 2013).
% Premium to low: it is at a premium of 23.3% to the 12-month low of $13.10 (traded on 07 Mar, 2012).
- The present value of $1,000 (PV$1000) invested one year ago is $1,230 [vs $1,209 for the All Ordinaries Index], including a capital gain of $206 and dividend reinvested of $24. The total return to shareholders for 1 year is 23.0%.
PV$1000 | 1-week | 1-month | 1-year |
AGK.ASX | $1,062 | $1,037 | $1,230 |
Overbought/Bearish/Resistance Signals
