Market loves this Philippine real estate power house
Ayala Land (ALI), a 605 billion real estate conglomerate, recently reported a healthy 13% increase in revenue and 21% rise in profits for its 2017 operations compared to 2016.
Ayala’s main business generator is its residential development (Ayala Land Premier, Alveo, Avida, Amaia) followed by its shopping center businesses among others.
The property specialist also reported 174.4 billion in debt, 25.7 billion in cash, and 167 billion in book value as of 2017.
In the past three years, ALI raised 55.5 billion in financing activities while having provided 20 billion in dividends to shareholders.
COL Financial has a buy rating on ALI with a 53.07/share fair value. This blog’s estimates indicate a per share figure of 34.3 compared to 41.10/share at the time of writing (4/22/2018).
ALI has averaged health high teens business growth in the past decade, and there are no signs of this slowing down.
However, high multiples (currently at 24x p/e trailing, 4x book) makes ALI a pass.
Disclosure: No shares in ALI.