CAA Resources Limited, an investment holding company, explores for, mines for, crushes, and beneficiates iron ore in Malaysia, the People’s Republic of China, the Netherlands, and South Korea.
The last earnings update was 21 days ago.
Discounted Cash Flow Calculation for SEHK:2112 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:2112 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
CAA Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
CAA Resources's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
CAA Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
CAA Resources's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if CAA Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
CAA Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Yang Li has been the Chief Executive Officer of CAA Resources Limited since April 12, 2013 and has also been its Chairman since April 12, 2013. Mr. Li has been appointed as the director of Capture Advance since February 2010 and the director of Capture Advantage and director of Best Sparkle since June 2011. Mr. Li graduated from the College of Business of Eastern New Mexico University in the United States majoring in business administration in 2009.
Yang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Yang's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the CAA Resources management team is over 5 years, this suggests they are a seasoned and experienced team.
Chairman & CEO
Deputy GM & Executive Director
Production Supervisor & Executive Director
Company Secretary & Financial Controller
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the CAA Resources board of directors is about average.
Does Market Volatility Impact CAA Resources Limited's (HKG:2112) Share Price?
Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Do Directors Own CAA Resources Limited (HKG:2112) Shares?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Our analysis of the ownership of the company, below, shows that. … institutions don't own shares in the company.
Should We Be Cautious About CAA Resources Limited's (HKG:2112) ROE Of 2.7%?
This article is for those who would like to learn about Return On Equity (ROE). … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.027 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Does CAA Resources Limited's (HKG:2112) P/E Ratio Tell You?
CAA Resources has a price to earnings ratio of 93.72, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 93.72 = $0.20 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.0021
Does CAA Resources Limited's (HKG:2112) CEO Pay Reflect Performance?
In 2013 Yang Li was appointed CEO of CAA Resources Limited (HKG:2112). … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Yang Li's Compensation Compare With Similar Sized Companies?
Could The CAA Resources Limited (HKG:2112) Ownership Structure Tell Us Something Useful?
Generally speaking, as a company grows, institutions will increase their ownership. … CAA Resources is a smaller company with a market capitalization of HK$2.3b, so it may still be flying under the radar of many institutional investors. … Our analysis of the ownership of the company, below, shows that.
Can CAA Resources Limited (HKG:2112) Improve Its Returns?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.027. … Return on Equity = Net Profit ÷ Shareholders' Equity
Why CAA Resources Limited's (HKG:2112) High P/E Ratio Isn't Necessarily A Bad Thing
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at CAA Resources Limited's (HKG:2112) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Are CAA Resources Limited's (HKG:2112) Interest Costs Too High?
While small-cap stocks, such as CAA Resources Limited (HKG:2112) with its market cap of US$2.48b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.
Understanding Your Return On Investment In CAA Resources Limited (HKG:2112)
and want a simplistic look at the return on CAA Resources Limited (HKG:2112) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in CAA Resources, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
CAA Resources Limited, an investment holding company, explores for, mines for, crushes, and beneficiates iron ore in Malaysia, the People’s Republic of China, the Netherlands, and South Korea. It operates through three segments: Mine Operation, Commercial Trade, and Financing Operation. The company’s principal project is the Ibam project located in Daerah Rompin, Pahang, Malaysia. It purchases and sells iron ore concentrates, iron ore fines, and other commodities to steel manufacturers and/or their respective purchase agents, as well as to other commodity trading companies. The company also engages in financing related businesses, and provides loans to third parties. CAA Resources Limited was incorporated in 2012 and is headquartered in Kuantan, Malaysia. CAA Resources Limited is a subsidiary of Cosmo Field Holdings Limited.
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