What's there not to like about this company? Every car needs to have its periodic car inspection. It's regulated. That's a guaranteed business.
Are people going to move away from car ownership? Naw. Not even if the MRT lines work well and taxi drivers decide to drive under all weather, all hours.
Is VICOM well run? A visit to VICOM would show just how few workers they need to transact each car through its inspection process. The process is well oiled and highly automated. Keeps churning away.
|Market Capitalization (SGD 'mil)||523.76|
|Common Shares Outstanding ('mil)||88.6140|
|52 Week High (SGD) (14/05/2014)||5.940|
|52 Week Low (SGD) (21/06/2013)||4.550|
|52 Week Return (%)||22.680|
|Average Volume ('mil)||0.0064|
|Long Term Debt to Equity (%)||-|
|Total Debt to Equity (%)||-|
|Interest Coverage Ratio (TTM)||-|
|Free Cash Flow to Firm (TTM) (SGD 'mln)||21.94|
|Gross Margin (TTM) (%)||42.52|
|Operating Profit Margin (TTM) (%)||32.59|
|Net Profit Margin (TTM) (%)||27.84|
|Annual Dividend per share (SGD)||0.1610|
|Dividend Yield (TTM) (%)||2.72|
|Dividend Yield (Annual) (%)||2.72|
|Payout Ratio (TTM) (%)||68.66|
|3-Year Growth Rate (%)||7.67|
|Historical P/E Ratio||18.38|
|P/E Ratio (TTM)||18.04|
|P/BV (latest interim)||3.81|
|BVPS (latest interim) (SGD)||1.5502|
|EPS TTM (SGD)||0.3276|
Given the above, we can see that it has very good margins, and absolutely no debts!
Its dividend payout has been great - currently at 2.72% and deceivingly lower, but would usually be much higher by the end of each FY. Its dividends has been consistently climbing up from 0.118 (FY09) to 0.161 (FY13). DPS has also maintained below EPS throughout the past 5 years. Hard to find such companies on the SGX. Tell me if you know of others with such a characteristic. I consider this to be one of the high yield and dividend paying stock.
There's probably not much room for significant growth though, so don't expect heart-stopping growth. But it should remain steady. Does anybody actually check how much they pay for each car inspection? I'm guessing probably not. Just pay! And in fact, with more than just a sense of gratitude to get a pass so that you can continue to use the car without needing further work. I could hear the expletives from the truck driver in the next lane whose car didn't.
P/E ratio perhaps a bit high right now. But what's there not to like about this stock? Really.
[Disclaimer: This is a not a call to buy or sell. Merely a record of why I invested in this stock.]