CDW Holding Ltd is engaged in production and supply of niche precision components for mobile communication equipment, gamebox entertainment equipment, consumer and information technology equipment, office equipment and electrical appliances. It has a single economic moat which is cost advantage due to it is having own production house that can easily control the price.
This stock is consider good bacause it has consistent Earnings Per Share (EPS), has positive Operating Cash Flow for 9 years out of 10 years in the past and has Debt/Equity of 0.06 (< 0.5) in the last year. Although the Return of Equity (ROE) is less than 15% most of the years, but it is still acceptable because it is quite close to 15%.
Besides, the Price/Earning (PE) is 4.2 (<12), Price/Book (PB) is 0.7 (has 30% discount) and Dividend Yield % is 11.9%.
This stock would suffer only from science and tech risk due constant
R&D is needed to innovate new products to remain competitive in the ever changing electronics market.
The current price for this stock is SGD0.14. From stock valuation, the
biz confidence level is 7.5 out 10, can buy it now as growth stock
because its PEG<1, the current price is lower than entry price (SGD0.46) and has
margin of safety (MOS) of 69.59%.
Can buy it now as dividends stock also
because the current price (SGD0.14) is lower than entry price (SGD0.20) and has positive margin
of safety (MOS) of 30%.
Can buy it now as asset play stock also
because the current price (SGD0.14) is lower than entry price (SGD0.15) and has positive margin
of safety (MOS) of 7.89%.
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