San Miguel Food and Beverage Inc. was formerly known as San Miguel Purefoods Inc. It was incorporated in 1956 and was primarily engaged in the business of manufacturing and marketing of processed meat products.
Later on, the company diversified into livestock and poultry operations, flour and feeds milling, dairy and coffee services, franchising, and young animal ration manufacturing and distribution.
This year, FB amended its primary purpose of reflecting its expansion in the alcoholic and non-alcoholic beverages. It also adopted its current name.
Market Cap: PHP 76.43 billion
Sector: Industrial
Subsector: Food, Beverage & Tobacco
Earnings Highlights:
- Revenues in 2017 reached PHP 117.45 billion, higher by 5.25 percent versus the recorded PHP 111.59 billion in the same period in 2016.
- The company booked a net income attributable to parent of PHP 6.57 billion last 2017.
Cash Dividends to Preferred and Common Stockholders
On August 8, 2018, FB declared cash dividends both to its preferred and common stockholders. The company reported a total of PHP 14.14225 per share to preferred stockholders with a record date of August 23, 2018, and a payment date of September 12, 2018.
Additionally, the company declared PHP 0.40 per share as dividends to common stockholders with a record date of August 23, 2018, and a payment date of September 6, 2018.
Apparently, preferred stockholders received more payment than common stockholders. Common stockholders, though, should not dismay because of the following:
- Preferred stockholders are given preferential attention when it comes to dividends.
- They have a fixed interest rate annually.
However, the downside is that preferred stockholders do not participate in the company’s excess income should the latter have extraordinary income.
Moreover, preferred stockholders do not have absolute rights like the right to vote and the right to attend the stockholder’s meeting.
Meanwhile, common stockholders have the following advantages:
- Attend meetings
- Vote for the board of directors
- Dividends
- Right to receive proceeds after liquidation
However, common stockholders do not know the amount of the dividends. They only receive dividends and liquidation proceeds after preferred shareholders are given their share.
FB Figures Aren’t Bad After All
With a dividend of PHP 0.40 per share and a current price for the common stock of PHP 80.00, the dividend yield is only at 0.50 percent.
If one does not look at the dividend and would consider the price movement in the past few days, the stock looks positive since it went up from PHP 70 on August 7, 2018, to PHP 80 today.
That is a return of roughly 15 percent. This figure is not bad considering that only five trading days passed.
For the first quarter of the year, the company grew revenues to 11.90 percent at PHP 29.80 billion. This figure was mainly attributable to the excellent performance of the Agro-Industrial and Brand-Added Business.
Furthermore, sales volume increased significantly. Favorable pork and chicken prices helped in growing revenues.
Nonetheless, FB recorded a decline of 6 percent in net income attributable to the parent company at PHP 1.34 billion due to a spike in expenses. Gross expenses reached PHP 27.66 billion, higher by 12.50 percent versus the same period last year.
FB registered a doji today after a sharp run-up the previous five trading days. The moving averages are bullishly aligned.
Volume profile supports a bullish outlook. MACD is bullish. RSI is also bullish but is at overbought levels.
PHP 75.30 is the estimated Support, followed by PHP 70.95. Resistance is expected at PHP 80.00 followed by PHP 83.20.
Volume
As of August 13, 2018, at 03:30 PM, the volume of FB is 100.05% of the previous trading day.
Risk Level
FB has a LOW-RISK level due to its risk percentage of 39.08%.
Remember the correlation between price and volume.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
Foreign Fund Flow
FB registered a Net Foreign Selling worth P9,663,528.00 as of August 13, 2018.
On a 30-day trading period, FB is on a Net Foreign Selling worth PHP63,224,381.00.
Top 10 Players’ Sentiment
Trading participants of FB with a 100% Buying and Selling Activity as of Aug-13-2018 at 03:30 PM:
10 out of 31 participants or 32.26% of all participants registered a 100% BUYING activity
7 out of 31 participants or 22.58% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 80.3075
Top 10 Players’ Selling Average: 80.4815
The psychological average price of the top 10 players as of Aug-13-2018 is from 80.3075 to 80.4815.
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