I have been checking on this counter for several months and I must say Solution Engineering Holding (0093) have had quite a good record on its financial status. I may not be a pro in investing yet but looking at some indicators, the performance is quite promising.
- Debt and equity ratio (D/E) is 0.03. This indicates that Solution has RM0.03 debt for every RM1 of equity it owns.
- The current ratio (CR) is 4.03. It means the ability of Solution to repay its debt is 4 times of its current debt.
- It reported positive EPS of RM0.074 last quarter. In fact, its result for the past several quarters are good.
Based on what I have learned recently, I learned to look for stock which has higher earning compared to the previous quarter (or at least reasonable amount), D/E lower than 0.5, CR higher than 1.5 and acceptable price over earning ratio (P/E). Out of 4 indicators, Solution meets two of them. As for the EPS part, Solution's 2015Q3 EPS was not as good as 2015Q2 but it is acceptable. And, last for but least, it's P/E is acceptable, too. I have not compared its P/E with other company of similar industry yet, but I still think it has the potentials.
Let's keep an eye on this counter and see how it performed on last quarter of 2015 and upcoming 2016.
PS: Please do your homework before making any trading decision.
No comments:
Post a Comment