09.27.09 TimelessWealth.net: Fundamental Analysis on American Lorain Corporation (ALN).
Dear Subscriber,
The term ‘value’ in regards to ‘value investors’, or
rather ‘value investments’, was coined to suggest
earnings. In the end, a corporation is truly only valued based
on what it earns. Earnings are what translate to shareholder
value and thereafter (hopefully) a high ROI (return on
investment). This is where the P/E (price-to-earnings) ratio
plays a fundamental role. This ratio conveys how much the market
is willing to pay per share for every $1.00 a company earns,
where traditionally a small P/E ratio suggests a given company,
undervalued.
Our fundamental analysis has led us to conclude the following
statements regarding American Lorain Corporation’s (ALN)
financial performance:
-
American Lorain Corporation’s revenue realized over the past
twelve months (ttm) was $138,570,000.
-
American Lorain Corporation’s revenue for the period ended June
30th, 2009 (mrq) grew 11.30% compared to the same period in
2008.
-
American Lorain Corporation’s EPS (earnings per share) over the
past twelve months (ttm) amounted to $0.572 per common share.
-
American Lorain Corporation’s recent market price suggests the
company is trading with a P/E (price-to-earnings) ratio of 4.7,
far from the industry’s average of 16.1.
-
American Lorain Corporation’s suggested market price based on
earnings collected over the past twelve months (ttm) is $9.18
per share.
-
American Lorain Corporation’s forward P/E ratio is 3.83,
forecasting strong corporate growth and expansion.
-
American Lorain Corporation’s suggested market price based on
projected earnings over the next twelve months is $11.26 per
share.
Forward P/E is a measurement of the Company’s current price
divisible by projected earnings over the next twelve month
period. Since an investment concerns the future value of
American Lorain Corporation (ALN), value investors place a great
deal of importance upon not only the company’s earnings over the
past twelve months (trailing P/E) but also relate to what the
company expects to make over the following twelve months
(forward P/E). The following will examine American Lorain
Corporation’s projected earnings.
P/E = Market Price / EPS.
American Lorain Corporation’s forward P/E is 3.83.
American Lorain Corporation’s market price is $2.68 per share.
Therefore: American Lorain Corporation is projecting EPS of
$0.70, or income growth of 22% when compared to the current
period ($0.572).
Fact: On September 22nd, 2009 , American Lorain
Corporation (ALN) signed contracts with Two Popular Chain
Restaurants in China worth an aggregate value of $10,900,000.
Fact: This Thursday, October 1st, 2009 , American Lorain
Corporation (ALN) will present their story before hundreds of
retail brokers, institutional brokers, fund managers, portfolio
managers, accredited investors, and research analysts seeking
undervalued companies as value investments.
American Lorain Corporation (ALN) trades with one of the
smallest trailing and forward P/E ratios in the entire
Consumer Goods Sector. While our report is designed to cover key
technical and fundamental concepts, TimelessWealth.net strongly
encourages investors review our fundamental analysis on American
Lorain Corporation (ALN) with further research. All the best.
Sincerely,
Edward Stevenson.
Timeless Wealth Staff.
 Join Us 
|
