Thursday, April 21, 2016

ISOTeam - My CNAV Analysis

Recently, one small cap company keep popping up in my private group chat with a few of the like-minded financial bloggers. Hence, decided to do a quick CNAV (Conservative Net Asset Value) Analysis.

The company in question is ISOTeam Ltd (5WF.SI). In fact, it happens to be one of the RHB's top 25 small cap picks for 2016 (whatever it means to you).  

ISOTeam Ltd. operates as a building maintenance and estate upgrading company in Singapore. It operates through Repair and Redecoration (R&R), Addition and Alteration (A&A), and Others segments. It primarily serves town councils, government bodies, and building owners. ISOTeam Ltd. was founded in 1998 and listed in SGX on 12 Jul 2013 (IPO Price : $0.11).

The Key Quantitative Indicators of CNAV Strategy (Basing on the 2015 Annual Report):

Net Asset Value (NAV) = $0.163
Conservative Net Asset Value (CNAV2) = $0.044
Current Price = $0.32
Discount For CNAV2 = -209%

Conclusion : From the price's perspective, it is traded above the CNAV2 as well as NAV. 

The P.O.F Scores of CNAV Strategy:

Profitability Score = 1 (With the PE ratio of 11.2)
Operational Efficiency = 1 (with three consecutive years of positive operating cashflow)
Financial Efficiency = 1 (Debt To Equity Ratio of 63%)

Conclusion : A perfect POF indicators.

Other information:
1. The company has a record year in 2015 with a strong Balance Sheet.
2. In Year 2015, the company declared 1.15 cents of dividend (Dividend Yield of 3.6% basing on the current price)
3. In Feb 2016, the company declared 1-For-1 Bonus.
4. Top 5 shareholders of the company are:

Click here for the pdf copy of ISOTeam's 2015 Annual Report!

ISOTeam is not a CNAV stock but still worth a second look for potential GROWTH play. 

Are you vested on this counter? What is your take?


Note : Do You Own Due Diligence!

I've learnt this not-difficult-to-do calculation from the Value Investing Mastery Course (Big Fat Purse) last year. Immediately after the one day course, I am on my own to calculate the CNAV myself. With the help of the idiot-proof spreadsheet (provided free after the course), it makes calculating the CNAV a breeze.

Oh, by the way, they are still conducting the one-full-day Value Investing Master Course at $98, which is unbelievable. From what I know, most of their classes, which usually happen on the weekend, are fully booked. So, if you are interested to learn more about Value Investing and how to calculate the CNAV, you should find out more from the horse's mouth!


  1. Isoteam had been quite aggressive on the acquisition front, buying over smaller companies with similar or related business in the industry value chain.. Due to the fragmented and competitive nature of the industry, growth thru acquisition may be necessary.. So need to look out for successful execution and integration of these business into their own ops, shown thru increasing sales, earnings and cash flow.

    Also.. Cnav may not be a suitable valuation method for this company still at nascent growth stage.. I feel a low pe at reasonable growth is more suitable..

    And need to monitor closely..

    1. CSCC : Thanks for the input, all are salient points.

  2. How high are the barriers to entry in this business?


Like What You See? Subscribe To Us Here...

* indicates required