Asked on 19 Apr 2019
Discuss anything about 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!
Isetan is a household name and many of us might have shopped there before. I wiill try something out here and analyse Isetan through the lens of their cashflow statements.
The first thing that strikes me here is that profit is actually negative for them. Just from looking at their cashflows, I believe that this is also due to the impairment on property, plant and equipment of $12m.
Thankfully, the company has managed their working capital for this year in such a way that it actually generated more cash for them. Working Capital refers to assets such as inventory, receivables (money owed from others) and payables (money that you owe to others).
What strikes me here is the high amount that i spent on purchases of financial assets and payments for investments property. These 2 outflows have contributed significantly to the negative cashflows for investing activities.
Cashflow from financing activities was negative as well, due mainly to dividends being paid out. This would bring us to a dividend payout ratio (dividends/net profit) which is negative, since net profit was negative.
Free Cash Flow
A quick and dirty estimate of Free Cash Flow brings us to 6.2m. If the company does not hold much debt, then such the free cashflow flows to shareholders of the company.