Smart-Core Holdings Limited, an investment holding company, engages in the trading of integrated circuits and other electronic components in the People’s Republic of China.
The last earnings update was 25 days ago.
Discounted Cash Flow Calculation for SEHK:2166 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:2166 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Smart-Core Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Smart-Core Holdings's earnings are expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Smart-Core Holdings 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.
Smart-Core Holdings'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
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Smart-Core Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Smart-Core Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Smart-Core Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Smart-Core Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 17.7x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
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.
Mr. Weidong Tian is Founder, Chairman and Chief Executive Officer at Smart-Core Holdings Limited and has been its Executive Director since October 22, 2015. Mr. Tian has been leading Smart-Core for over 10 years and is responsible for overseeing the overall business strategy, development of projects, management and operations. Mr. Tian has extensive experience in the semiconductor industry and its related distribution. He was the sales director of Shenzhen Dadong Electronics Co., Ltd. from October 1993 to June 1997 where he was in charge of the management of the sales team, formulation of sales and marketing strategies and maintenance of business partnerships with clients and suppliers. He was the sales manager of Trident Multimedia Technologies (Shanghai) Co., Ltd. from December 1999 to March 2002 where he was in charge of sales and marketing. Mr. Tian obtained a degree of Bachelor of Electronic Engineering from Xiamen University in July 1989 and a degree of Master of Business Administration from the National University of Singapore in March 2000.
Weidong's compensation has been consistent with company performance over the past year, both up more than 20%.
Weidong's remuneration is about average for companies of similar size in Hong Kong.
Tsz Leung Wong
CFO & 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 Smart-Core Holdings board of directors is about average.
Did You Miss Smart-Core Holdings's (HKG:2166) 14% Share Price Gain?
For example, the Smart-Core Holdings Limited (HKG:2166) share price is up 14% in the last year, clearly besting than the market return of around -15% (not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the last year Smart-Core Holdings grew its earnings per share (EPS) by 4.0%.
Smart-Core Holdings Limited (HKG:2166) Earns Among The Best Returns In Its Industry
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Want To Invest In Smart-Core Holdings Limited (HKG:2166)? Here's How It Performed Lately
Today I will examine Smart-Core Holdings Limited's (HKG:2166) latest earnings update (31 December 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of 2166's industry performed. … 2166's trailing twelve-month earnings (from 31 December 2018) of HK$80m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 21%, indicating the rate at which 2166 is growing has slowed down
Read This Before You Buy Smart-Core Holdings Limited (HKG:2166) Because Of Its P/E Ratio
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Smart-Core Holdings has a price to earnings ratio of 10.85, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
What Does Smart-Core Holdings Limited's (HKG:2166) Balance Sheet Tell Us About It?
While small-cap stocks, such as Smart-Core Holdings Limited (HKG:2166) with its market cap of HK$907m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … The following basic checks can help you get a picture of the company's balance sheet strength.
What Percentage Of Smart-Core Holdings Limited (HKG:2166) Shares Do Insiders Own?
The big shareholder groups in Smart-Core Holdings Limited (HKG:2166) have power over the company. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … Smart-Core Holdings is not a large company by global standards.
Should You Buy Smart-Core Holdings Limited (HKG:2166) For Its Dividend?
Recently, Smart-Core Holdings Limited (HKG:2166) has started paying dividends to shareholders. … Does Smart-Core Holdings tick all the boxes of a great dividend stock? … View our latest analysis for Smart-Core Holdings
Should We Be Delighted With Smart-Core Holdings Limited's (HKG:2166) ROE Of 14%?
Our data shows Smart-Core Holdings has a return on equity of 14% for the last year. … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
How Many Insiders Sold Smart-Core Holdings Limited (HKG:2166) Shares?
So we'll take a look at whether insiders have been buying or selling shares in Smart-Core Holdings Limited (HKG:2166). … The Last 12 Months Of Insider Transactions At Smart-Core Holdings. … Over the last year, we can see that the biggest insider sale was by CFO & Executive Director Tsz Leung Wong for HK$35m worth of shares, at about HK$1.55 per share.
Why We Like Smart-Core Holdings Limited’s (HKG:2166) 20% Return On Capital Employed
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Smart-Core Holdings Limited, an investment holding company, engages in the trading of integrated circuits and other electronic components in the People’s Republic of China. It also provides technical value-added services. The company’s products are used in various applications, such as smart media display, intelligent broadcasting terminal, mobile terminal, smart automotive electronics, and memory products. Its principal customers include consumer electronic product manufacturing companies, original design manufacturers, and original equipment manufacturers in the electronic product industry. The company was formerly known as Smart-Core Cloud Group Limited and changed its name to Smart-Core Holdings Limited in August 2016. The company was founded in 2005 and is based in Kwai Chung, Hong Kong. Smart-Core Holdings Limited is a subsidiary of Smart IC Limited.
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