VHM (Vinhomes) Potential financial stress
Industry: Construction and Real Estate/ Real Estate Development/ Real Estate Development.
Vinhomes has Price to Book ratio at below 1 (0.96 on Friday 17/11/23)
Debt to assets ratio at 0.10 (10%)
● Definitely undervalue stock (cheap)
● Current Financial situation: High risk (also high reward)
Springate Score: If the value of the Springate score is greater than 0.862, the analyzed company is in a stable state. If the value is less than 0.862, it means the company might be under financial stress 1.
Current VHM's Springate Score: 0.63 < 0.862 indicate Financial stress
However the score has improve +14.36% since Mar 23
The Springate Score is financial ratio used to evaluate a company's financial health. The formula is:
Springate Score=0.1A+0.6B+0.03C+0.33D
Where:
A = Working Capital / Total Assets
B = Retained Earnings / Total Assets
C = Earnings Before Interest and Taxes (EBIT) / Total Assets
D = Equity / Total Liabilities
High risk for long position (short term-medium term)
Trading Diary: Sat 18/11/23
Vinhomes has Price to Book ratio at below 1 (0.96 on Friday 17/11/23)
Debt to assets ratio at 0.10 (10%)
● Definitely undervalue stock (cheap)
● Current Financial situation: High risk (also high reward)
Springate Score: If the value of the Springate score is greater than 0.862, the analyzed company is in a stable state. If the value is less than 0.862, it means the company might be under financial stress 1.
Current VHM's Springate Score: 0.63 < 0.862 indicate Financial stress
However the score has improve +14.36% since Mar 23
The Springate Score is financial ratio used to evaluate a company's financial health. The formula is:
Springate Score=0.1A+0.6B+0.03C+0.33D
Where:
A = Working Capital / Total Assets
B = Retained Earnings / Total Assets
C = Earnings Before Interest and Taxes (EBIT) / Total Assets
D = Equity / Total Liabilities
High risk for long position (short term-medium term)
Trading Diary: Sat 18/11/23
Comment: