fbpx

Stock Picks for the week by First Metro Securities

Check out the Stock Picks for the week by First Metro Securities in this special report which you can find only here in PinoyInvestor. (Needs premium access.)


READ REPORT

Energy Development Corporation (EDC) Stock Analysis

Energy Development Corporation (EDC) was incorporated and registered with the Securities and Exchange Commission on March 5, 1976 to primarily engage in the business of exploring, developing and operating geothermal energy and other indigenous renewable energy projects in the Philippines, and utilizing geothermal energy and other indigenous renewable energy sources for electricity generation.

EDC became a subsidiary of Red Vulcan Holdings Corporation on November 29, 2007.

EDC’s geothermal power projects engage in two principal activities:

  • The production of geothermal steam for use at EDC and its subsidiaries’ geothermal power plants;
  • The generation and sale of electricity through those geothermal power plants pursuant to take-or-pay power offtake arrangements.

EDC operates commercial operations in four of its 14 geothermal service contract areas namely, Tongonan geothermal project; Southern Negros geothermal project; Bacon-Manito geothermal project; and Mt. Apo geothermal project.

EDC also operates a hydroelectric power plant through its 60%-owned subsidiary, First Gen Hydro Power Corporation. The Company likewise holds 11 wind energy service contracts covering areas in Ilocos Norte, Sorsogon, Iloilo, and Negros Occidental; and five solar energy service contracts covering areas in Ilocos Norte, Negros Occidental, North Cotabato, and Cebu.

In separate occasions in 2015, EDC received the feed-in-tariff certificate of compliance for the 150 MW Burgos wind energy project and 4 MW Burgos solar power project in Ilocos Norte.

The Company’s subsidiaries include:

  • EDC Drillco Corporation
  • EDC Geothermal Corp.
  • EDC Chile Limitada
  • EDC Holdings International Limited
  • EDC Wind Energy Holdings, Inc.
  • EDC Bright Solar Energy Holdings, Inc.

Sector Details:

  • Sector: Industrial
  • Subsector: Electricity, Energy, Power & Water

source: PSE Edge


Value Screen Scorecard

Stocks are scored based on Profitability & Growth, Financial Health, Quality, Dividends and Valuation. Each criterion in the list is scored based on financial data for a total of 100 points. Stocks are ranked from 1 to 5, 1 being the highest.

Read this post to get more information on how the value scorecard works.

Scoring Criteria:

  • Rank # 1: Extremely good company
  • Rank # 2: Good company
  • Rank # 3: Average company
  • Rank # 4: Needs further study and research to identify the company's weaknesses
  • Rank # 5: Risky company

Value Scorecard (1-25-2017 3Q2016)

Piotroski F-Score

The Piotroski F-Score is a financial metric model that's helpful in spotting turnaround businesses. For more information, you may read about it here.

Scoring Criteria:

  • 7 to 9 points: Wonderful business
  • 5 to 6 points: Average business
  • 1 to 4 points: Weak business

Piotroski F-Score (1-25-2017 3Q2016)

Altman Z-Score

The Altman Z-Score is a bankruptcy prediction model that's helpful in spotting low quality companies. More information about it can be found in this post here.

Scoring Criteria:

  • Z > 2.99; “SAFE” Zone (Healthy business)
  • Z < 1.81; “DISTRESS” Zone (Troubled business)
  • 1.81 > Z > 2.99; “GREY” Zone (Warrants more investigation)

Altman Z-Score (1-25-2017 3Q2016)

Estimated Growth Rates

Estimated growth rates are calculated using exponential chart trend line formula.

Estimated Growth Rates (3Q2016)

Intrinsic Value Calculations

The figures and all other variables used in order to get the intrinsic value are listed in detail below for reference purposes so that cross-checking can be made to verify the values obtained.

Intrinsic Value Calculations (1-25-2017 3Q2016)

We love to hear your thoughts! Share them on the comments section below. Happy investing!

  • January 26, 2017

Model Portfolios: Unloved, Value Play, Yield Seeker, Riding the Momentum

Looking for model portfolios to guide your stock picking decisions? Don't worry, we got you covered! Check out this special stock picks and model portfolio report today! (Needs premium access.)


READ REPORT
>