Businessweek

AUSTRALIAN COMPANY NEWS BITES

STOCK REPORT

Swick Mining Services Ltd (ASX:SWK), Australia's 38th largest capital goods company by market capitalisation, increased 0.50c (or 1.3%) to close at 38.0c. The volume was 1.7 times the average trading of 395,298 shares. Compared with the All Ordinaries Index, which fell 24.3 points (or 0.5%) on the day, this was a relative price change of 1.8%.

Bullish Signals

- In the last three months the stock has hit a new 52-week high four times, pointing to an uptrend.

- The present value of $1,000 (PV$1000) invested one year ago is $1,208, including a capital gain of $169 and dividend reinvested of $39.

Fundamental measures by comparison with the sector average [in brackets] indicate Undervaluation:

- Price/Earnings of 9.2 [18.5].

- Price to Book of 0.9 [2.5]. We estimate the shares are trading at a current year Price to Book of 0.9 and a forward year Price to Book of 0.8.

- Return on Assets 6.4% [3.8%].

Other Bullish Signals:

- Total Liabilities/EBITDA of 1.6 is comfortably below 5, this compares favourably with the Joseph Piotroski benchmark of 5.

- The P/E of 9.2 multiplied by the P/NTA of 0.9 is 8.1. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

- The company is cash rich with Cash to Market Capitalisation at 17.8%.

- Interest cover defined by EBIT/I is 9.9 times. This indicates it is less leveraged.

- 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.

Note

Volume: there were 672,448 shares worth $255,528 traded.

Beta: the Beta of this stock is 1.1. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

- It is at a discount of 9.5% to the 12-month high of 42.0c on 14 Feb, 2013. It is also at a premium of 61.7% to the 12-month low of 23.50c on 08 Aug, 2012.

Fundamental measures by comparison with the sector average [in brackets] indicate Overvaluation:

- Price/Sales of 0.6 [0.6]. We estimate the shares are trading at a current year Price/Sales of 0.5 and a forward year Price/Sales of 0.4.

- Dividend yield of 2.6% [5.8%].

Fundamental measures by comparison with the sector average [in brackets] indicate Parity:

- Return on Equity 9.2% [9.1%].

- Return on Capital Employed 11.5% [10.8%].

COMPANY ANNOUNCEMENTS

The last 7 company announcements are:

March 01: Swick Mining Services: H1 2013 Presentation