C07 Stock Intrinsic Value – Is Jardine Cycle & Carriage Limited Riskier Than It Appears?

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Jardine Cycle & Carriage ($SGX:C07) Limited (JC&C) is a Singapore-listed investment holding company with interests in motor vehicles, automotive components, and related services. The company also has a stake in certain Malaysian and Indonesian businesses. While JC&C looks like a safe and reliable stock on the surface, the company may pose more risk than initially apparent. The company’s business is reliant on motor vehicle sales, which can be heavily impacted by changes in consumer sentiment or shifts in government regulations. The company’s investment in certain Malaysian and Indonesian businesses also carries additional risk due to unpredictable local economic conditions.

Additionally, JC&C is exposed to exchange rate fluctuations between the Singapore dollar and other currencies, which could pose an additional risk for investors. Overall, JC&C may pose more risk than initially apparent. Although the company looks like a safe investment on the surface, investors should consider the potential risks before investing in the stock. It is important to research the company thoroughly and understand all the potential risks before making an investment decision.

Price History

Jardine Cycle & Carriage Limited (JARDINE CYCLE & CARRIAGE) had a promising start on Thursday, with its stock opening at SG$29.0 before closing at SG$29.1, up 1.1% from the previous closing price of SG$28.8. This could indicate that JARDINE CYCLE & CARRIAGE could be less risky than initially perceived. Though the stock showed promising gains, investors should still be aware that JARDINE CYCLE & CARRIAGE is not without risk.

Its success can be dependent on a range of factors, such as the company’s performance, the global economy, and the sector it operates in. Therefore investors should do their own research and understand the risks before investing in the company. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for C07. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for C07. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for C07. More…

Key Ratios Snapshot

Some of the financial key ratios for C07 are shown below. More…

Analysis – C07 Stock Intrinsic Value

At GoodWhale, we recently performed an analysis of the wellbeing of JARDINE CYCLE & CARRIAGE. Through our proprietary Valuation Line, we calculated that the fair value of JARDINE CYCLE & CARRIAGE share is around SG$30.5. However, JARDINE CYCLE & CARRIAGE stock is currently traded at SG$29.1 – a price that is undervalued by 4.5%. This provides an opportunity for investors to purchase JARDINE CYCLE & CARRIAGE shares below its fair value. More…

Peers

It is a public-listed company in Singapore and is one of the largest listed companies in Southeast Asia. In terms of competition, Jardine Cycle & Carriage Ltd faces stiff competition from Bajaj Auto Ltd, DRB-Hicom Bhd, and Piaggio & C. SpA, all of which are significant players in the automotive industry.

– Bajaj Auto Ltd ($BSE:532977)

Bajaj Auto Ltd is a leading Indian manufacturer and exporter of motorcycles, scooters and three-wheelers. It has a market capitalization of 1.03T as of 2023, making it one of the most valuable companies in India. It has also delivered an impressive return on equity of 16.81%, indicating that the company has been able to generate significant profits from its investments. Bajaj Auto is committed to providing quality products and services to its customers while maintaining its competitive edge in the market. The company has consistently strived to improve its operational efficiency and increase its profitability to create long-term value for its shareholders.

– DRB-Hicom Bhd ($KLSE:1619)

DRB-Hicom Bhd is a diversified conglomerate in Malaysia. With a market cap of 3.15B as of 2023, DRB-Hicom is the largest automotive group in the country and is involved in many industries such as automotive, defence and commercial vehicle assembly, banking, insurance, leasing, property, and hospitality. The company’s Return on Equity (ROE) of 8.64% indicates that it is able to generate profits from its investments in various businesses. DRB-Hicom also has strong financial position and liquid assets that enable it to invest in new business opportunities and sustain its operations in turbulent economic times.

– Piaggio & C. SpA ($OTCPK:PIAGF)

Piaggio & C. SpA is an Italian global manufacturer of motorcycles and scooters, commercial vehicles and light transport vehicles, and aerospace technology. Founded in 1884, the company has grown to become one of the world’s largest producers of two-wheeled motor vehicles. As of 2023, Piaggio & C. SpA has a market cap of 1.12 billion, reflecting the company’s strong financial position and growth potential. The company’s Return on Equity of 21.91% is also indicative of its efficiency in managing shareholder funds and generating profits for investors.

Summary

Investing in Jardine Cycle & Carriage Limited could be a risky endeavor due to its volatile stock price in recent years. Despite its long-term success in the transportation industry, the company’s stock has seen a significant decline in the last five years. This could indicate that the stock may not be a safe long-term investment. Furthermore, the company has a high debt-to-equity ratio, meaning that it is taking on more debt than it is generating in equity.

Additionally, the company’s dividend yields are currently lower than its peers, making it less attractive to investors seeking high dividend returns. In conclusion, while Jardine Cycle & Carriage Limited has a long history of success in the transportation industry, investors should be aware of the risks before investing in the company.