About the company's liability ... i am not too concerned. The nature of the company has always been high debt relative to cash. Borrowing was to sustain business growth. Revenue has grown from US$584 mil in 2012 to US$988 mil in 2016 .. almost double. Current revenue is likely to cross the billion dollar mark.
The current liability at half time is - US$273 mil against assets of US$336 mil.
I have been vested w the company for many years and have enjoyed the regular
high dividend. And have seen the company growing in terms of revenue n profitability. I believe the company has entered into a new phase of growth n are likely to see higher revenue n profits.
As expected Excelpoint produce another set of good results:
1. revenue ...up 16% from US$988.2 mil to US$1,1 bil
2. profit ... up 14 % from US$7.1 mil to US$ 8.1 mil
3. dividend declared ... up from S'pore 4cts to 4.5 cts per share
1st time company revenue has crossed the billion dollar mark.
Its also the 1st time that company has declared a 4.5 cts dividend. Previous year, it was 4.0 cts. This give a dividend yield of 6.6% on current price of 67.5 cts.
My 1st post on this company was in 2013. My entry point was about 30 cts. Over the years i have collected about 24 cts of dividends. Together w the capital gain, this counter has been rewarding to me.
Today i am still optimistic about the company for the following reasons:
1. continuing growth in top n bottom line
2. high dividend yield of 6.5% on current price of 69.5 cts. Company had been consistent in its dividend. Except for 1 year when the dividend dropped to 2.5 cts, all other years the dividend was 4 cts. With improved results the dividend declared for current year is 4.5 cts.
3. expression of confidence by the CEO that the company's revenue may touch $2 billion in 5 years time. This is a hugh improvement compared to the $1 billion
plus the company is doing now.
4. the low valuation. On current price the p/e is only 7.6 X. With further growth, which is quite likely, the p/e will be much lower.
Above are just my thoughts n are for sharing only.
I am happily heavily vested and hope to see the day the revenue reach $2 billion
Last edit: 6 years 4 months ago by josephyeo. Reason: correct wrong figure