Blue Chips With Zero Net Debt

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Collated using Shareinvestor

Sembcorp and Sembmarine were excluded from the table because their latest quarter were net debt positive. What I did here was to collate all the blue chips with zero net debt and align them in an ascending rolling PE order(as shown above). The top three are the bank counters(OCBC, DBS, UOB) which have moved up recently. The counter with PE<20x and price closest to its 52 Wks Low is ST Engineering. Is it trading at a hefty discount now?

The market is valuing ST Engineering at 5.31x books. EPS CAGR for 3 years is at +4.93%. If it is able to maintained its DPS at 15cts, its yield will be around 4.48%. Lets take a look at its financials:

Collated using Shareinvestor

The above table shows five quarters of results back to back for comparison. Its profit before tax has been dwindling(slightly) since 1st quarter 2014 onwards. Which also translate to lower earnings, mainly contributed by the aerospace sector for this quarter. This could be the reason for its long drawn out bearishness.

Weekly chart wise, RSI is currently oversold at 27.91. Price action broke its trend line during mid October and is currently being supported by 38.2% fibo at 3.32. If it fails to hold, subsequent supports are shown accordingly. Starting to look really interesting.