A Closer Look At Thai Beverage’s Growth, Dividend, And Valuation

There are mainly three groups of investors in stock market. They are value, growth and income investors.

Given their different perspectives, these investors will use different metrics to look for investment ideas.

In this article, we will look at three different numbers at Thai Beverage Public Company Limited’s (SGX: Y92) that maybe of interest to these three separate groups of investors.


Growth investors are interested in companies that possess a good historical track record of high growth rates and a potential to continue that growth into the future.

Usually, this group of investors will use historical revenue and profit growth trends, as the start of their search process.

So how did Thai Beverage perform in the last five years in terms of revenue and operating profit?


Both revenue and operating profit are up by 31% and 35%, respectively, during the last five years. In simple terms, revenue has grown by 7% compounded, whilst operating has compounded by 8%.


Dividend or income investors are look for companies with high dividend yields and sustainable dividend payments.

At S$0.995, Thai Beverage is trading at a trailing dividend yield of 2.6%, which is lower than the 3.17% yield for the SPDR Straits Times Index ETF (ES3).

To assess the sustainability of dividend payment, we could look at two numbers, namely the debt/equity ratio and profit payout ratio. As a rule of thumb, the lower these two ratios, the more sustainable the dividend payments.

Here, Thai Beverage latest debt/equity ratio is about 36% and profit pay-out ratio is 68%.


Value investors love searching for bargains. They are constantly trying to pay less than $1 for each dollar of investment.

There are many methods that value investors use to identify the attractiveness of an investment.

Here, we will compare Thai Beverage to the SPDR Straits Times Index ETF using two simple valuation metrics, namely, the price-to-book (PB) ratio and the price-to-earnings (PE) ratio.


Here, we can see that both ratios are much higher than that the STI Index.


Overall, we can see that Thai Beverage may be of interest to growth investors, due to its steady growth. Nevertheless, the high price tag – one that value investors detest – will be a concern even to growth investors.

Our observations are based on historical numbers. It is important that investors make up their own minds about to the future prospects of this company.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.