Debenhams : The GBp 80.7 support area is tested
 |
03/15/2013 | 04:31am
Opinion : Bullish above 80.7 GBp
Target price : 90.5 GBp
Stop loss: 78.1 GBp
|
LONDON STOCK EXCHANGE
Retail – Department Stores |
The GBp 80.7 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
From a fundamental viewpoint, Debenhams is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 0.54 times its revenues. The PER ratio is only 8.36 and 7.94 times the two next years earnings.
The security follows a downward trend in the short and mid term. However, the selling pressure could run out of steam soon. Indeed, while the stock shows an oversold condition on a couple of technical indicators, the bullish trend line and the 100-week moving average should provoke a reversal towards the GBp 90.5 short term resistance.
So as to make the most of a potential technical rebound of Debenhams, it seems opportune to take a long position at the current price. The first objective will be set at GBp 90.5. Once this resistance crossed the security could reach the GBp 96.2 resistance. Investors should not insist under GBp 80.7 and are better to place a stop loss order under this threshold.
 |
|
Copyright (c) 2013 4-Traders.com |
Disclaimer : 4-Traders.com is not registered as a securities broker-dealer or investment adviser with any jurisdiction and is not providing any personalized financial, investment or tax advice. 4-Traders cannot assess or guarantee the suitability of any particular investment to any personal situation. Accordingly, you bear complete responsibility for your own investment, financial, and tax research and decisions and should seek the advice of a qualified professional prior to making any decisions based on 4-Traders' website information. This article is provided solely for informational purposes, and does not constitute an offer or solicitation to buy or sell any securities. All opinions expressed and information and data provided therein are subject to change without notice.
|
|
|
|
|
Valuation |
2013e |
2014e |
|
PER (Price / EPS)
|
9,71x |
9,37x |
|
Capitalization / Revenue
|
0,46x |
0,44x |
|
EV / Revenue
|
0,60x |
0,58x |
|
EV / EBITDA
|
5,85x |
5,60x |
|
Yield (DPS / Price)
|
3,49% |
3,69% |
| Profitability |
2013e |
2014e |
|
Operating Margin (EBIT / Sales)
|
6,50% |
6,50% |
|
operating laverage (Delta EBIT / Delta Sales)
|
- |
1,00x |
|
Net Margin (Net Profit / Revenue)
|
4,68% |
4,56% |
|
ROA (Net Profit / Asset)
|
6,05% |
6,00% |
|
ROE (Net Profit / Equities)
|
17,4% |
17,2% |
|
Rate of Dividend
|
33,9% |
34,6% |
|
|
|
