General Information
Vista Land and Lifescapes, Inc. was incorporated in the Republic of the Philippines and registered with SEC, on February 8, 2007. VLL is the holding company of the Vista Group which comprises:
1. Camella Homes and subsidiaries - caters to mid to low end of the market
2. Brittany Corporation-caters to high end segment of the market
3. Crown Asia Properties, Inc-caters to upper middle income market
4. Communities Philippines, Inc.- caters to markets outside Metro Manila and offers residential units.
5. Vista Residences, Inc.-caters to development and selling of vertical projects across the Philippines.
VLL is engaged mainly in the development of residential subdivisions and construction of housing units and condominium. It offers a wide range of product from socialized or affordable housing to middle income and high end house and lots, and condo projects.
Return on Assets (ROA) 1.4%
ROA is computed by dividing the net income against the Total assets. It measures the Company's earnings against the resources it has at it's disposal.
Return on Equity (ROE)2.2%
ROE is computed by dividing the net income against the total equity. It measures the Company's earnings against it's owners money.
Current Ratio 2.89:1
Current ratio is obtained by dividing the current assets against current liabilities. It is used to test the Company's liquidity. The current ratio of VLL is good. It has the ability to pay it's short term liabilities without any sweat because it has almost 3 times ability to pay the current liabilities.
Debt to Equity Ratio .57:1
Debt to equity ratio is obtained by dividing the total liabilities against total equity. It determines the company's borrowing capacity. It also magnifies the ratio on how the company is financing the business in terms of loans and ownership. VLL has a favorable debt to equity ratio because the company is using more money from the owners than from the bank. As we know, bank loans are a little bit higher to finance because of interest expense.
Senator Manny Villar
VLL is owned by Manny Villar and his family according to Wikipedia and Inquirer. As we all know, Sen. Manny became one of Philippines wealthiest person because of real estate. VLL is the largest homebuilder in the Philippines.
P:E ratio 7.5:1
The price earnings ratio is obtained by dividing market share price against earnings per share. According to Investopedia, A stock with a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to the overall market, as investors are paying more for today's earnings in anticipation of future earnings growth. Hence, as a generalization, stocks with this characteristic are considered to be growth stocks. Conversely, a stock with a low P/E ratio suggests that investors have more modest expectations for its future growth compared to the market as a whole.
The P/E ratio of VLL is one of the lowest among the listed real estate companies. The advantage of this is that once the company's earnings soar in future years, you could earn handsomely because it's stock price will rise. On the other hand, the drawback on a low P/E ratio is that the investors are seeing a modest growth in the company's earnings potential. Based on a limited study, ,VLL's revenues and net income increased as compared to last year. It can have the momentum of growing further and benefit from the strong property market. I think the current share price of VLL is cheap.
Buyback program
Yesterday, VLL announced that it will buy back 1.5 billion of shares because they believed that the share price is undervalued. VLL said that the recent stellar performance of the
company and it's bright future prospects, the management considered it appropriate to buy back it's shares because it is undervalued. Given the company's confidence in meeting it's own internal targets and that 2011 will be a record year, I believe it will be worthwhile to take a look in this company as part of your stock portfolio.
BUY Recommendation
Various stockbrokers including Credit Lyonnaise, Duetsche Bank, Citiseconline, Philippine Equity Partners, Credit Suisse, UBS have analyzed VLL financial condition and operation and have issued a BUY recommendation.
Conclusion
After checking the Price Earnings of other real estate listed in the stock market, VLL is on the bottom part but I believe that sooner the correct fair value of the company will reflect in the market. The recent buy back of the Company and the management's confidence in their own internal processes and financial condition, reflects the company's belief that it's share price is grossly undervalued. The current ratio is very strong, and the longterm debt are manageable. 2011 could be a record year and given the hot property market still soaring, VLL can capitalize on this. It is a cash rich company and it's subdivisions are well known throughout the country.
The ratios and key performance indicators I mentioned above were based from 1st quarter 2011 reports. It's latest financial reports strongly suggests that VLL is undervalued and is currently selling at a bargain.
The prospects are good and I'm seeing a midnight sale in PSE and I'm going to grab as much items as I can. Hopefully when my salary will come this month, the midnight sale will still be
there!
Vista Land and Lifescapes, Inc. was incorporated in the Republic of the Philippines and registered with SEC, on February 8, 2007. VLL is the holding company of the Vista Group which comprises:1. Camella Homes and subsidiaries - caters to mid to low end of the market
2. Brittany Corporation-caters to high end segment of the market
3. Crown Asia Properties, Inc-caters to upper middle income market
4. Communities Philippines, Inc.- caters to markets outside Metro Manila and offers residential units.
5. Vista Residences, Inc.-caters to development and selling of vertical projects across the Philippines.
VLL is engaged mainly in the development of residential subdivisions and construction of housing units and condominium. It offers a wide range of product from socialized or affordable housing to middle income and high end house and lots, and condo projects.
Return on Assets (ROA) 1.4%
ROA is computed by dividing the net income against the Total assets. It measures the Company's earnings against the resources it has at it's disposal.
Return on Equity (ROE)2.2%ROE is computed by dividing the net income against the total equity. It measures the Company's earnings against it's owners money.
Current Ratio 2.89:1
Current ratio is obtained by dividing the current assets against current liabilities. It is used to test the Company's liquidity. The current ratio of VLL is good. It has the ability to pay it's short term liabilities without any sweat because it has almost 3 times ability to pay the current liabilities.
Debt to Equity Ratio .57:1
Debt to equity ratio is obtained by dividing the total liabilities against total equity. It determines the company's borrowing capacity. It also magnifies the ratio on how the company is financing the business in terms of loans and ownership. VLL has a favorable debt to equity ratio because the company is using more money from the owners than from the bank. As we know, bank loans are a little bit higher to finance because of interest expense.
Senator Manny Villar
VLL is owned by Manny Villar and his family according to Wikipedia and Inquirer. As we all know, Sen. Manny became one of Philippines wealthiest person because of real estate. VLL is the largest homebuilder in the Philippines.
P:E ratio 7.5:1
The price earnings ratio is obtained by dividing market share price against earnings per share. According to Investopedia, A stock with a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to the overall market, as investors are paying more for today's earnings in anticipation of future earnings growth. Hence, as a generalization, stocks with this characteristic are considered to be growth stocks. Conversely, a stock with a low P/E ratio suggests that investors have more modest expectations for its future growth compared to the market as a whole.The P/E ratio of VLL is one of the lowest among the listed real estate companies. The advantage of this is that once the company's earnings soar in future years, you could earn handsomely because it's stock price will rise. On the other hand, the drawback on a low P/E ratio is that the investors are seeing a modest growth in the company's earnings potential. Based on a limited study, ,VLL's revenues and net income increased as compared to last year. It can have the momentum of growing further and benefit from the strong property market. I think the current share price of VLL is cheap.
Buyback program
Yesterday, VLL announced that it will buy back 1.5 billion of shares because they believed that the share price is undervalued. VLL said that the recent stellar performance of the company and it's bright future prospects, the management considered it appropriate to buy back it's shares because it is undervalued. Given the company's confidence in meeting it's own internal targets and that 2011 will be a record year, I believe it will be worthwhile to take a look in this company as part of your stock portfolio.
BUY RecommendationVarious stockbrokers including Credit Lyonnaise, Duetsche Bank, Citiseconline, Philippine Equity Partners, Credit Suisse, UBS have analyzed VLL financial condition and operation and have issued a BUY recommendation.
Conclusion
After checking the Price Earnings of other real estate listed in the stock market, VLL is on the bottom part but I believe that sooner the correct fair value of the company will reflect in the market. The recent buy back of the Company and the management's confidence in their own internal processes and financial condition, reflects the company's belief that it's share price is grossly undervalued. The current ratio is very strong, and the longterm debt are manageable. 2011 could be a record year and given the hot property market still soaring, VLL can capitalize on this. It is a cash rich company and it's subdivisions are well known throughout the country.
The ratios and key performance indicators I mentioned above were based from 1st quarter 2011 reports. It's latest financial reports strongly suggests that VLL is undervalued and is currently selling at a bargain.
The prospects are good and I'm seeing a midnight sale in PSE and I'm going to grab as much items as I can. Hopefully when my salary will come this month, the midnight sale will still be
there!
This is TSO from PMT.
ReplyDeleteDon't you think 1.4% ROA is a bit too low? Even SHNG earns higher than this, and I'm operating on memory here! An ROA like this indicates low profitability, low efficiency, or both.
Also, your ratios are too basic. If you're going to refer to the current ratio as a test of liquidity, I suggest looking into the current assets that go into it. VLL is a Real Estate company and being an RE company, there's bound to be lots of money tied up in real estate inventory and property that just cannot be sold easily. The quick ratio is a better litmus test in this case.
Also, you need to take company expectations with a grain of salt. Just because VLL believes it would meet its own targets doesn't necessarily mean it will meet them when time elapses. Neither does it imply a bias-free anticipation. People geared towards optimism and managers tend to have a rosy view of the future. (Sources: a TIME magazine published within 2011 for the first, and J. Montier's book on Value Investing for the second. I'd give you the technical details, but I don't recall the exact month for TIME and my J. Montier book is currently at home)
Buyback programs are a good sign, but that's just it. A good sign. If you really want to look into its prospects for growth, look into its historical sales and key performance indicators related to operations (NOT the accounting numbers!).
Furthermore, if you're going to throw in names of companies, substantiate the name-drops by including some details of their research.
Lastly, try to provide sources (*cough*hyperlinks*cough*) when it comes to making material opinions such as "the hot property market is still soaring" or "VLL has bright future prospects". It will give you more credibility.
Wikipedia has always been considered an unreliable source in school -- because anyone can edit it. The proper way to use Wikipedia for formal reports is to look at the sources from where the information populating the page is lifted.
Just so you know, I don't intend on flaming you. I'm just trying to push you towards improvement. :)
Hi TSO, thank you for dropping by and for your comments. Dont worry i'll take your comments positively. Every person of course has its own opinion and I respect that.
ReplyDeleteI am proud to be part of the Camella homes family here in Pagadian City
ReplyDeletefreya camella