TimelessWealth.net: Fundamental Analysis on American Lorain Corporation (ALN).

The term ‘value’ in regards to ‘value investors ’, or rather ‘value investments ’, was coined to suggest earnings. In the end, a corporation is truly only valued based on what it earns. Earnings are what translate to shareholder value and thereafter (hopefully) a high ROI (return on investment). This is where the P/E (price-to-earnings) ratio plays a fundamental role. This ratio conveys how much the market is willing to pay per share for every $1.00 a company earns, where traditionally a small P/E ratio suggests a given company, undervalued. Our fundamental analysis has led us to conclude the following statements regarding American Lorain Corporation’s (ALN) financial performance:  American Lorain Corporation’s revenue realized over the past twelve months (ttm) was $138,570,000. American Lorain Corporation’s revenue for the period ended June 30th, 2009 (mrq) grew 11.30% compared to the same period in 2008. American Lorain Corporation’s EPS (earnings per share) over the past twelve months (ttm) amounted to $0.572 per common share. American Lorain Corporation’s recent market price suggests the company is trading with a P/E (price-to-earnings) ratio of 4.7, far from the industry’s average of 16.1. American Lorain Corporation’s suggested market price based on earnings collected over the past twelve months (ttm) is $9.18 per share. American Lorain Corporation’s forward P/E ratio is 3.83, forecasting strong corporate growth and expansion. American Lorain Corporation’s suggested market price based on projected earnings over the next twelve months is $11.26 per share. Forward P/E is a measurement of the Company’s current price divisible by projected earnings over the next twelve month period. Since an investment concerns the future value of American Lorain Corporation (ALN), value investors place a great deal of importance upon not only the company’s earnings over the past twelve months (trailing P/E) but also relate to what the company expects to make over the following twelve months (forward P/E). The following will examine American Lorain Corporation’s projected earnings. P/E = Market Price / EPS. American Lorain Corporation’s forward P/E is 3.83. American Lorain Corporation’s market price is $2.68 per share.   Therefore: American Lorain Corporation is projecting EPS of $0.70, or income growth of 22% when compared to the current period ($0.572).   Fact: On September 22nd, 2009 , American Lorain Corporation (ALN) signed contracts with Two Popular Chain Restaurants in China worth an aggregate value of $10,900,000. Fact: This Thursday, October 1st, 2009 , American Lorain Corporation (ALN) will present their story before hundreds of retail brokers, institutional brokers, fund managers, portfolio managers, accredited investors, and research analysts seeking undervalued companies as value investments. American Lorain Corporation (ALN) trades with one of the smallest trailing and forward P/E ratios in the entire Consumer Goods Sector. While our report is designed to cover key technical and fundamental concepts, TimelessWealth.net strongly encourages investors review our fundamental analysis on American Lorain Corporation (ALN) with further research. About TimelessWealth.net: Timeless Wealth empowers investors with the confidence and tools that they need to succeed in any given market environment. Timely approaching an investment opportunity may be the difference between building wealth and struggling with finances. Our goal is to transform each and every member into a high net-worth individual through intelligent investments. Resultantly, we are building a stronger, more sophisticated equity market.

Was this helpful? 0 0 Comments

You're reading TimelessWealth.net: Fundamental Analysis on American Lorain Corporation (ALN)..