Company Background – PWRoot
Power Root Berhad, through its subsidiaries, engages in the manufacture and distribution of beverage products primarily in Malaysia. It provides ready-to-drink (RTD) coffee, RTD tea, RTD chocolate malt drinks, RTD cereal, and energydrinks. The company markets its products primarily under the Alicafe, Perl Cafe, Oligo, Alitea, and Power Root brand names. It also distributes health and beauty products. Power Root Berhad also exports its products to 18 countries, including Singapore, the United States, the Republic of Taiwan, South Korea, Brunei, the United Arab Emirates, the Republic of China, Bahrain, Qatar, Oman, the Kingdom of Saudi Arabia, Indonesia, Syria, Kuwait, Yemen, Jordan, Egypt, and Lebanon, as well as re-exports its products through overseas distributors/traders to Sudan, Australia, the United Kingdom, and the Philippines. The company was formerly known as Natural Bio Resources Berhad and changed its name to Power Root Berhad in July 2010. Power Root Berhad was incorporated in 2006 and is headquartered in Masai, Malaysia.
Declining Price Trend?
It appears that PWRoot is “lacking power” as it is currently facing downward price pressure with support lines at RM1.78 and RM1.38. Nevertheless, PWRoot is a fundamentally strong consumer company with financial strength:
|
|
Trend | Trailing 12M Dec 2015 |
Full Year Mar 2015 |
Full Year Feb 2014 |
Full Year Feb 2013 |
|---|---|---|---|---|---|
| Per Share Data (Adjusted) | |||||
| [+] Earnings Per Share (EPS) – Adjusted [RM] (Earnings/Latest Number Of Shares) |
0.18668 | 0.14172 | 0.12751 | 0.11309 | |
| [+] Net Asset Value (NAV) Per Share – Adjusted [RM] ((Shareholders’ Equity – Other Share Capital)/Latest Number Of Shares) |
0.7824 | 0.7595 | 0.7259 | 0.6709 | |
| [+] Net Tangible Asset (NTA) Per Share – Adjusted [RM] ((Shareholders’ Equity – Other Share Capital – Intangible Assets)/Latest Number Of Shares) |
0.7663 | 0.7434 | 0.7084 | 0.6534 | |
| Valuation Ratios (Adjusted) | |||||
| [+] Price Earnings Ratio (PER) – Adjusted (Price/Adjusted EPS) |
11.30 | 14.89 | 16.55 | 18.66 | |
| [+] Price/NAV – Adjusted (Price/Adjusted NAV) |
2.6969 | 2.7780 | 2.9069 | 3.1449 | |
| [+] Price/NTA – Adjusted (Price/Adjusted NTA) |
2.7537 | 2.8384 | 2.9788 | 3.2295 | |
| [+] Price/Revenue – Adjusted (Price x Latest Number Of Shares/Revenue) |
1.692 | 1.674 | 2.091 | 2.296 | |
| [+] Price/Operating Cash Flow – Adjusted (Price x Latest Number Of Shares/Operating Cash Flow) |
10.027 | 9.510 | 16.894 | 27.916 | |
| [+] Price/Free Cash Flow – Adjusted (Price x Latest Number Of Shares/Free Cash Flow) |
10.876 | 11.335 | 19.983 | 52.741 | |
| [+] Dividend Yield – Adjusted [%] (Gross Dividend Per Share/Price) |
5.924 | 4.728 | 4.223 | 3.274 | |
| [+] Dividend Yield incl Special Dividend – Adjusted [%] (Total Dividend Per Share/Price) |
5.924 | 4.728 | 4.223 | 3.274 | |
Analysts’ Price Target
| Date | Open Price | Target Price | Upside / Downside | Price Call | Source |
|---|---|---|---|---|---|
| 23/12/2015 | 2.75 | 3.10 | +0.35 (12.73%) | TRADING BUY | KENANGA |
If PWRoot continues to maintain its strong business and financial fundamentals, it is not unreasonable to assume PWRoot’s share price will rebound in the long run.
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