Vicom Ltd Intrinsic Value Calculation – Public Companies Dominate VICOM Ltd’s Ownership Structure with 67% Share
May 23, 2023
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VICOM ($SGX:WJP) Ltd is a public company listed on the Singapore Exchange (SGX). It is involved in the automotive and testing services sector, providing inspection and testing services for motor vehicles. Its ownership structure consists of public companies holding 67% of the shares and individual investors possessing the remaining 27%. This indicates that public companies have a significant say in the management and decisions of VICOM Ltd.
The company has several shareholders, with the most prominent ones being the Singapore Government Investment Corporation (GIC) and DBS Group Holdings Limited. Given its ownership structure, it is clear that decisions taken by VICOM Ltd are heavily influenced by public companies. This means that decisions made by VICOM are likely to be well-informed and based on the expertise of their major shareholders.
Analysis – Vicom Ltd Intrinsic Value Calculation
We at GoodWhale conducted an analysis of VICOM LTD‘s financials and identified that the fair value of VICOM LTD share is around SG$2.2, calculated by our proprietary Valuation Line. Currently, VICOM LTD stock is traded at SG$1.8, which is a fair price undervalued by 18.5%. This presents investors with an opportunity to buy into VICOM LTD at a discounted price and potentially reap greater returns in the near future. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vicom Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 106.04 | 26.18 | 24.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vicom Ltd. More…
| Operations | Investing | Financing |
| 25.39 | -8.34 | -31.86 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vicom Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 186.97 | 63.14 | 0.35 |
Key Ratios Snapshot
Some of the financial key ratios for Vicom Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.7% | -0.9% | 31.5% |
| FCF Margin | ROE | ROA |
| 15.5% | 17.1% | 11.2% |
Peers
It faces competition from Speedemissions Inc, Guan Chao Holdings Ltd, and Centenary United Holdings Ltd, all of whom are also key players in the automotive industry in the region.
– Speedemissions Inc ($OTCPK:SPMI)
Speedemissions Inc is a vehicle emissions testing company that operates in the United States. As of 2022, the company has a market capitalization of 213.06k. This market cap reflects the value of the company’s shares and the amount investors are willing to pay for them. In terms of return on equity, Speedemissions Inc has a negative number of -2.23%. This indicates that the company is not generating enough profit to cover its investors’ investments.
– Guan Chao Holdings Ltd ($SEHK:01872)
Guan Chao Holdings Ltd is an investment holding company that specializes in providing business solutions to its clients. The company operates in a wide range of industries, including real estate, retail, and hospitality. With a market cap of 116.1M, the company is well-positioned to continue expanding its business operations. Its Return on Equity (ROE) of 9.43% indicates that the company is generating a good return on its investments. The company’s strong financial performance is also reflected in its high dividend yield of 5.6%. This demonstrates the company’s commitment to rewarding its shareholders for their support.
– Centenary United Holdings Ltd ($SEHK:01959)
Centenary United Holdings Ltd is a Hong Kong-based conglomerate that engages in a variety of activities, including investments in real estate properties, securities, and futures. As of 2022, the company has a market cap of 156.61M, reflecting its size and presence in the market. Additionally, the company has a Return on Equity (ROE) of 5.62%, which indicates its ability to generate profits relative to its equity base. This is a sign of its financial health and successful management.
Summary
Investing in VICOM Ltd has proven to be an attractive option for public companies. They have a majority stake in the company, accounting for 67% of the ownership. This is followed by individual investors who own 27%. This indicates that public companies have a greater say in the management and business decisions of VICOM Ltd, making it an appealing option for investment.
