Ayala (PSE:AC) - Share price, News & Analysis

AC fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	3/6
Financial Health	1/6
Dividends	3/6

AC Stock Overview

Ayala Corporation engages in the real estate and hotel businesses in the Philippines and internationally.

Rewards

Earnings are forecast to grow 22.71% per year

Earnings grew by 372.3% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Ayala Competitors

SM Investments

PSE:SM

₱1.0t

Lawson

TSE:2651

JP¥452.8b

Metro Pacific Investments

PSE:MPI

₱112.8b

Waterfront Philippines

PSE:WPI

₱1.1b

Price History & Performance

Summary of all time highs, changes and price drops for Ayala
Historical stock prices
Current Share Price	₱680.00
52 Week High	₱915.00
52 Week Low	₱651.00
Beta	0.82
1 Month Change	-10.05%
3 Month Change	-20.93%
1 Year Change	-5.42%
3 Year Change	-23.81%
5 Year Change	-21.75%
Change since IPO	208.90%

Shareholder Returns

	AC	PH Industrials	PH Market
7D	0.7%	3.0%	2.5%
1Y	-5.4%	-0.6%	7.9%

Return vs Industry: AC underperformed the PH Industrials industry which returned -0.6% over the past year.

Return vs Market: AC underperformed the PH Market which returned 7.9% over the past year.

Price Volatility

Is AC's price volatile compared to industry and market?
AC volatility
AC Average Weekly Movement	5.1%
Industrials Industry Average Movement	4.9%
Market Average Movement	5.6%
10% most volatile stocks in PH Market	10.1%
10% least volatile stocks in PH Market	3.1%

Stable Share Price: AC is not significantly more volatile than the rest of PH stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1834	n/a	Fernando Miranda de Ayala	https://www.ayala.com.ph

Ayala Corporation engages in the real estate and hotel businesses in the Philippines and internationally. Its Real Estate and Hotels segment develops, constructs, leases, and sells residential and commercial communities; manages land bank; operates hotels, cinema, and theaters; and provides construction and property management services. The company’s Financial Services and Insurance segment provides corporate, consumer, mortgage, leasing, and agri loans; deposit and cash management, asset management, online stock trading, foreign exchange and capital markets investments dealing, corporate finance and consulting, investment banking, internet banking, foreign exchange, and safety deposit services; and life, non-life, pre-need, and reinsurance services.

Ayala Fundamentals Summary

How do Ayala's earnings and revenue compare to its market cap?
AC fundamental statistics
Market Cap	₱421.41b
Earnings (TTM)	₱30.88b
Revenue (TTM)	₱261.65b

13.6x

P/E Ratio

1.6x

P/S Ratio

Is AC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AC income statement (TTM)
Revenue	₱261.65b
Cost of Revenue	₱182.56b
Gross Profit	₱79.09b
Other Expenses	₱48.21b
Earnings	₱30.88b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	49.82
Gross Margin	30.23%
Net Profit Margin	11.80%
Debt/Equity Ratio	85.1%

How did AC perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

14%

Payout Ratio

Valuation

Is Ayala undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

13.65x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: AC (₱680) is trading above our estimate of fair value (₱289.71)

Significantly Below Fair Value: AC is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: AC is poor value based on its Price-To-Earnings Ratio (13.6x) compared to the PH Industrials industry average (11.3x).

PE vs Market: AC is poor value based on its Price-To-Earnings Ratio (13.6x) compared to the PH market (11.9x).

Price to Earnings Growth Ratio

PEG Ratio: AC is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: AC's Price-To-Book Ratio (1.2x) is in line with the PH Industrials industry average.

Future Growth

How is Ayala forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AC's forecast earnings growth (22.7% per year) is above the savings rate (4.9%).

Earnings vs Market: AC's earnings (22.7% per year) are forecast to grow faster than the PH market (20.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AC's revenue (10.4% per year) is forecast to grow faster than the PH market (10.3% per year).

High Growth Revenue: AC's revenue (10.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AC's Return on Equity is forecast to be low in 3 years time (11%).

Past Performance

How has Ayala performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-3.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AC has a large one-off gain of ₱8.9B impacting its March 31 2022 financial results.

Growing Profit Margin: AC's current net profit margins (11.8%) are higher than last year (3%).

Past Earnings Growth Analysis

Earnings Trend: AC's earnings have declined by 3.9% per year over the past 5 years.

Accelerating Growth: AC's earnings growth over the past year (372.3%) exceeds its 5-year average (-3.9% per year).

Earnings vs Industry: AC earnings growth over the past year (372.3%) exceeded the Industrials industry 57.4%.

Return on Equity

High ROE: AC's Return on Equity (7%) is considered low.

Financial Health

How is Ayala's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AC's short term assets (₱494.4B) exceed its short term liabilities (₱278.5B).

Long Term Liabilities: AC's short term assets (₱494.4B) do not cover its long term liabilities (₱520.8B).

Debt to Equity History and Analysis

Debt Level: AC's net debt to equity ratio (68.1%) is considered high.

Reducing Debt: AC's debt to equity ratio has increased from 82.2% to 85.1% over the past 5 years.

Debt Coverage: AC's debt is not well covered by operating cash flow (1.7%).

Interest Coverage: AC's interest payments on its debt are not well covered by EBIT (3x coverage).

Balance Sheet

Dividend

What is Ayala current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.02%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AC's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the PH market (1.41%).

High Dividend: AC's dividend (1.02%) is low compared to the top 25% of dividend payers in the PH market (4.65%).

Stability and Growth of Payments

Stable Dividend: AC's dividends per share have been stable in the past 10 years.

Growing Dividend: AC's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.9%), AC's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: AC is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

13.3yrs

Average management tenure

CEO

Fernando Miranda de Ayala (61 yo)

16.08yrs

Tenure

Mr. Fernando Miranda Zobel de Ayala serves as Non-Executive Director at Manila Water Company, Inc., since May 15, 1997 and served as Chairman. He has been Chief Executive Officer of Ayala Corporation since...

Leadership Team

Experienced Management: AC's management team is seasoned and experienced (13.3 years average tenure).

Board Members

Experienced Board: AC's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: AC insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31