(Stocks Discussion) SGX: Eurosports Global Ltd (SGX: 5G1)? - Seedly
Seedly logo
Seedly logo
 

Investments

Stocks Discussion

Anonymous

Asked on 14 May 2019

(Stocks Discussion) SGX: Eurosports Global Ltd (SGX: 5G1)?

Discuss anything about Eurosports Global Ltd SGX: 5G1.SI share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell this stock on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment in Eurosports Global Ltd SGX: 5G1.SI

0 comments

1 answer

Answer Now

Answers (1)

Sort By

Isaac Chan
Isaac Chan, Business at NUS
Level 8. Wizard
Answered on 14 May 2019

TL;DR The irony is that a firm who served wealthier clients doesn't look financially strong. Their cars look good but the financials dont. It may not be that worthwhile trying to find out more about their business model.

Source: Car and Driver

Business Profile

The company was established in 1998, and specialise in the business of distribution of ultra-luxury and luxury automobiles and provision of after-sales services. The Automobile Sales business retails new ultra-luxury and luxury automobile brands and pre-owned automobile brands comprising mainly Lamborghini, Pagani, Alfa Romeo and Touring Superlegerra.

Source: OneShift.com

Income Statement


The company's income statement looks pretty bad. Where the company's EBITDA is already negative. This is a clear sign that the company is losing cash flow. The income statement had improved over time, although it is still in the red.

Balance Sheet

The firm's short-term liquidity doesn't look good either, with a current ratio that is close to 1, and a quick and cash ratio which are pretty low. On the contrary, the firm does not hold much debt, which is evidenced by the Debt/Assets and Debt/Current Assets ratio. However, despite this, the firm does have negative earnings which means paying off the debts would become a challenge. Furthermore, the Altman Z score does point towards a dangerous level indicating some good chance of bankruptcy.

Cashflows

The firm seems like they have a moderate amount of free cash flow for the level of sales that the firm is producing. However, the firm's cash flows have also decreased over time and worsened. This suggests that the firm's earning power is slowly decreasing. With such poor cashflows, it is probably right that the firm is not paying out dividends so that the business can sustain itself.

Efficiency Metrics

Because of the weak earnings, the firm looks quite inefficient. There are some slight improvements from 2017 onwards but the figures are all still in the red.

Valuation

Some metrics might point towards the firm being undervalued, but I would suppose that this is due to the weak earnings potential of the firm. Some valuation metrics like P/E, PEG and EV/EBITDA can't be used since earnings are negative. The sales metrics show some positive signs, but this is distorted by the high costs which lead to the firm's weak earnings. ​​​

0 comments

👍 5