AUSTRALIAN COMPANY NEWS BITES
STOCK REPORT
Cape Lambert Resources Limited (ASX:CFE), Australia's 88th largest materials company by market capitalisation, dropped 1.0c (or 5.1%) over the past two trading days, after falling 2.6% on Monday and 2.6% on Tuesday to close at 18.50c. Compared with the All Ordinaries Index, which fell 21.5 points (or 0.4%) on the day, this was a relative price change of -2.2%.
Bearish Signals
Significant Downtrend
- The stock dropped 2.6% on high volatility today.
- The stock's relative price strength percentile is slipping at 13 for 6 months, 13 for 3 months and 7 for 1 month.
- Falls to Rises: in the past month the number of falls outnumbered rises 11:2 or 5.5:1.
- The price plummeted 26.0% in the last month.
- Compared with the All Ordinaries Index which fell 1.7% for the month, this represented a relative price decrease of 24.3% for the month.
- In the last three months the stock has hit a new 52-week low thrice.
- The present value of $1,000 (PV$1000) invested one year ago is $343, for a capital loss of $657.
PV$1000 | 1-week | 1-month | 1-year |
CFE.ASX | 1,156 | 740 | 343 |
All Ordinaries Index | 976 | 985 | 1,201 |
Fundamental measures by comparison with the sector average [in brackets] indicate Overvaluation:
- Price/Sales of 1.8 [1.3].
- Return on Equity 6.1% [10.6%].
- Return on Capital Employed 7.3% [12.6%].
Description | Value | Rank In Market |
Price Change % | -2.6 | In Bottom Quartile |
Price/MAP200 | 0.64 | In Bottom Quartile |
Relative Strength (6M) | 13 | In Bottom Quartile |
Bullish Signals
Fundamental measures by comparison with the sector average [in brackets] indicate Undervaluation:
- Price/Earnings of 5.6 [18.1].
- Price to Book of 0.3 [2.3]. We estimate the shares are trading at a current year Price to Book of 0.3 and a forward year Price to Book of 0.3.
Other Bullish Signals:
- Total Liabilities/EBITDA of 0.8 is comfortably below 5, this compares favourably with the Joseph Piotroski benchmark of 5.
- The P/E of 5.6 multiplied by the P/NTA of 0.3 is 1.9. 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 68.8%.
- Interest cover defined by EBIT/I is 251 times. This indicates it is less leveraged.
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.3. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.
Description | Value | Rank In Market |
P/E * P/NTA | 1.9 | In Top 5% |
Interest Cover | 251 | In Top 7% |
Price to Book Value | 0.3 | In Top 9% |
Price Earnings | 5.6 | In Top Quartile |
EBITDA Margin % | 40.6 | In Top Quartile |
Net Profit Margin % | 32.7 | In Top Quartile |
Note
Volume: there were 715,385 shares worth $134,327 traded. The volume was 0.8 times the average trading of 852,426 shares.
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.
