understanding Kenya Airways?
..comparing 2010 to 2009
Average Price March 2010 Kshs 58.50
Revenues 2010 Kshs 70,743,000,000
Revenue Growth -1.51%
Price-to-sales March 2010 0.38
Operating Income Growth -54.50
Operating Margin 2010 2.60
Operating Margin 2009 5.63
PBT Growth (paper loss in 09) -147.16%
PBT Margin 2010 3.78
PAT Growth 2010 -149.84
ROE (Return on Equity) 10.96
ROCE(Return on Capital Employed) 2.78
P/E @ price of 58.50 13.33
Price to Book 1.46
Div Yield 1.71

before i buy, i ensure;
1. Financial Statements;
*Revenues are growing over time
*Profits are increasing (operating, before tax, and after tax) and better than peers//and atleast 3 year improving averages
*Improving Profit margins over 3 years
*Profits as percentage of Assets, Shareholders’ equity better than that of peers..ROA and ROE and ROCE..higher than 15%..over three years


2. Investment Valuation
*Low price-to-sales ratio (PSR); preferably below 1..but compared to peers
*Low Price-to-Earnings (P/E) ratio
*Low price-to-book value especially if company is heavily reliant on physical assets e.g. manufacturing companies or companies operating within heavy capitalization industries.


3. Technical analysis
*Share is liquid enough to be easily available or easily sold but also scarce enough to prevent value dilution.
*Demand and supply volumes during trading periods.

Asante @the deal

@ the deal
I do read your blog, unfortunately, you don't allow comments from anonymous users.