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PR Newswire
30-01-2024, 07:55 AM
I have a simple way to get an overall picture of the fundamentals of a company. I look at the top line, bottom line and return trends on one chart.
![[Image: United-Plantation.png]](https://i.postimg.cc/sDG4vTz8/United-Plantation.png)
A good example is illustrated in the chart for United Plantations, a Bursa Malaysia plantation company. To enable all 3 to be plotted on the same chart, I converted them into indices by dividing the value for each year by the base year (2014 in this example)
You can see that revenue, profits and returns all trend in the same direction. This is a good quick and dirty picture showing that all 3 metrics about doubled over the past decade. This is a sign of a company with good fundamentals
The next question is whether there is enough margin of safety at the current price. But this is a different story for another day.
A good example is illustrated in the chart for United Plantations, a Bursa Malaysia plantation company. To enable all 3 to be plotted on the same chart, I converted them into indices by dividing the value for each year by the base year (2014 in this example)
You can see that revenue, profits and returns all trend in the same direction. This is a good quick and dirty picture showing that all 3 metrics about doubled over the past decade. This is a sign of a company with good fundamentals
The next question is whether there is enough margin of safety at the current price. But this is a different story for another day.