Raffles Medical is currently testing the long term up trend support and also the neckline support of the Double Tops chart pattern. This support level is at about $2.20. Breaking down from the Double Tops may send Raffles Medical to price target of $2.05. Currently Raffles Medical PE ratio is 26.3 (base on $2.25) which is higher compare to Medical and BioTechnology sector average PE of 16.2.
- PE (Rolling) = 25.5
- PE (FY2010) = 26.3
- PE (FY2009) = 31.4
- PE (FY2008) = 37.7
- PE (FY2007) = 33.1
Fundamental Analysis (base on FY2010):
- EPS = $0.08571
- Net Operating Cash Flow = S$49.2 Million (Positive and Stable Net Operating Cash Flow for past 4 years)
- Net Profit Margin: 18.9%
- ROA = 12.2%
- ROE = 15.8%
- Current Ratio = 2.1
- Debt to Equity Ratio = Debt Free
Fundamentally strong stock with stable earning and positive operating cash flow year over year. However, current stock price is not cheap for long term investment. Wait for the correction to accumulate.