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Stock Picks for the week by First Metro Securities

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Puregold Price Club Inc. (PGOLD) Stock Analysis

Puregold Price Club, Inc. (PGOLD) was incorporated on September 8, 1998 as a company involved in the business of trading goods such as consumer products on a wholesale and retail basis. The Company opened its first store in Mandaluyong City in December 1998. PGOLD’s loyalty program, “Tindahan ni Aling Puring”, was launched in 2004.

The Company conducts its operations through several retail formats and store brands.

  • Hypermarkets, through “Puregold Price Club“, offer a broad variety of food and non-food products and generally cater to both retail customers and resellers such as members of the Company’s loyalty program.
  • Supermarkets, through “Puregold Junior“, operate as a neighborhood store which offers a higher proportion of food to non-food products vis-à-vis the Company’s hypermarkets.
  • Discounters, through “Puregold Extra“, operate in a small store format that offers a more limited number of goods.

PGOLD also owns the S & R Membership Shopping (S&R) brand, which has a warehouse club concept where most of the products offered are in club packs; and Estenso Equities, Inc., which is the holding company for five companies namely,

  • NE Daily Commodities and First Lane
  • PG Lawson, Inc.
  • Ayagold Retailers, Inc.
  • Gold Tempo Company
  • San Roque Supermarkets

PPCI Subic, Inc. is operating one Puregold branch in Subic Bay, Olongapo City.

As of December 31, 2015, PGOLD is operating 135 hypermarkets, 93 supermarkets, 28 extras, 10 S&R warehouse clubs and 16 S&Rs – Quick Service Restaurants for a total of 282 stores all over the country.

Sector Details:

  • Sector: Services
  • Subsector: Retail

source: PSE Edge

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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 (1-21-2017 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 (1-21-2017 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 (1-21-2017 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 (1-21-2017 3Q2016)

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

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  • January 23, 2017

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

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