Singapore Strategy Snippet – Top 20 net cash to market cap companies March 16, 2020 551

  • With the market in a tailspin, we will periodically screen companies that enjoy some of the strongest balance sheets in comparison to their market cap.
  • Our screening criteria for the Top 20 net cash to market capitalisation companies are: i)company has to be above S$100mn in market capitalization ii)excludes financial companies (a large part of their cash holdings are customer deposits).
  • Some of the stocks generated in our screen are under our coverage – Penguin International and PropNex. We have a BUY recommendation on both companies.
  • The screen not only shows the healthy balance-sheet of the company, but it can also reflect how cheap the valuations of the company especially when we strip out the cash.

 

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About the author

Profile photo of Paul Chew

Paul Chew
Head of Research
Phillip Securities Research Pte Ltd

Paul has almost 20 years of experience as a fund manager and sell-side analyst. During his time as fund manager, he has managed multiple funds and mandates including capital guaranteed, dividend income, renewable energy, single country and regionally focused funds.

He graduated from Monash University and had completed both his Chartered Financial Analyst and Australian CPA programme.

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