- Historical performance, which looks at the company’s historical financials over the past 10 years, where discounts are given for poor performance and inconsistency;
- Profitability, which looks at profitability ratios such as return on equity, return on assets and margins;
- Yields and valuation, which compares the company’s fundamental yields against the risk-free rate and its relative valuation to peers;
- Financial safety, which examines the company’s balance sheet, comprising of liquidity and solvency ratios, the quality of its shareholder equity, and any external credit rating on the company;
- Sentiment, which looks at analyst ratings and forward price ratios on the company;
- Price-to-value aspect, which compares the price growth to the weighted value growth over multiple periods. This weighted value includes revenue, net income, and cash flows in ascending order.
For this week’s issue on sin-themed stocks, The Edge Singapore has filtered and scored globally and locally listed, investable companies. The Singapore-listed stocks include Ascent Bridge (SGX:AWG
) , Emperador, Genting Singapore (SGX:G13) , Geo Energy Resources (SGX:RE4) , Thai Beverage (SGX:Y92) , and Singapore Technologies Engineering (SGX:S63) .
As per previous issues, this scoring table is purely quantitative and considers six aspects of each company:
