Australia Stock Alert

AUSTR

CLOSING UPDATE: CIMIC Group increases 0.8%, led Capital goods sector higher April 20, 2018 16:00:00 AEST

NEWS BITES - AUSTRALIA

This is an end of day Alert, produced after today's Australian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

CIMIC Group, Australia's largest capital goods company by market capitalisation, has increased 0.8% to trade at $A44.25 vs. the Capital goods sector which strengthened 12.0 points (or 0.3%) to 3,672.4. Representing a weighting of about 35.5% of the sector, the stock accounted for 90.3% of today's gain. Trading volume was 80% of average at the end of the day. Compared with the All Ordinaries Index which fell 11.9 points (or 0.2%) in the day, this represented a relative price increase of 1.0%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings of 20.4 [47.7]

+ Price/Sales of 1.1 [1.2]

+ Dividend yield of 2.8% [2.1%]

+ Return on Equity 20.8% [6.2%]

+ Return on Assets 7.2% [2.8%]

+ Return on Capital Employed 23.8% [9.0%]

Bullish Signals:

+ Interest cover is less leveraged at 8.7 times.

+ Tobin's Q Ratio is 1.5. Compared with the rest of the market the stock is undervalued.

+ As per the Du Pont analysis, Return on Equity is high at 20.8%. Also, this has improved from 17.6% last year.

Note

CIMIC Group today is at a discount of 16.0% to the 12-month high of $A52.70 on 19 Dec, 2017. It is at a premium of 28.1% to the 12-month low of $A34.55 on 21 Apr, 2017.

Bearish Signals:

The negative 0.53 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price sank 4.9% in the last month.

Net profit margin has averaged 4.7% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price to Book of 6.3 [4.0]

TODAY'S ALERT

Morning Alert: CIMIC Group increases 0.5%

April 20, 2018 11:00:00 AEST

CIMIC Group Limited (ASX:CIM) has increased 20.0c (or 0.5%) to trade at $A44.08.

RECENT ALERTS

Morning Alert: CIMIC Group decreases 0.9%

April 18, 2018 11:00:00 AEST

CIMIC Group Limited (ASX:CIM) has decreased 40.0c (or 0.9%) to trade at $A43.56.

CLOSING UPDATE: CIMIC Group decreases further 0.1%, led Capital goods sector lower

April 16, 2018 16:00:00 AEST

CIMIC Group, Australia's largest capital goods company by market capitalisation, has decreased 1.0% to trade at $A43.76 vs. the Capital goods sector which weakened 10.7 points (or 0.3%) to 3,622.0. Representing a weighting of about 35.6% of the sector, the stock accounted for the loss. Trading volume was 28% of average at the end of the day. Compared with the All Ordinaries Index which rose 8.3 points (or 0.1%) in the day, this represented a relative price change of -1.1%.

CIMIC Group Limited (AU:CIM; ASX:CIM; AX:CIM)

ISIN: AU000000CIM7

PermID: 4295857469

Source: www.BuySellSignals.com