SCREENER: List of Philippine Common Stocks with Low EV/EBITDA, Low P/E, and Low P/B

Presented below are all the common stocks listed on the Philippine Stock Exchange (“PSE”) meeting the following criteria for the month of December 2021:

  • For non-banks, Enterprise Value-to-EBITDA (“EV/EBITDA”) Ratio below 15.0 for the last twelve (12) months ended September 2021
  • For banks, Price-to-Earnings (“P/E”) Ratio below 15.0 for the last twelve (12) months ended September 2021
  • For all companies, Price-to-Book Value (“P/B”) Ratio below 1.5 for the most recent quarter ended September 2021

All ratio data was retrieved from FactSet Research and Investing.com on December 2, 2021 (GMT +8).

The above screening criteria are loosely based on the following excerpt from Chapter 14 (“Stock Selection for the Defensive Investor”) of The Intelligent Investor (Revised Edition) by Benjamin Graham:

“Current price should not be more than 1 1/2 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5.”

Benjamin Graham

However, the decision to use the EV/EBITDA Ratio in lieu of the P/E Ratio to screen non-bank companies was inspired by the following excerpt from a 2000 article written by Michael Burry for MSN Money:

“I will screen through large numbers of companies by looking at the enterprise value/EBITDA ratio, though the ratio I am willing to accept tends to vary with the industry and its position in the economic cycle. If a stock passes this loose screen, I’ll then look harder to determine a more specific price and value for the company. When I do this I take into account off-balance sheet items and true free cash flow. I tend to ignore price-earnings ratios. Return on equity is deceptive and dangerous. I prefer minimal debt, and am careful to adjust book value to a realistic number.”

Michael Burry

The list below will be further streamlined in a succeeding article to eliminate companies with less than ideal financial positions and any adverse findings which might negatively affect the company at a fundamental level.

Financials

NameTickerP/EP/B
Asia United Bank CorporationAUB9.690.58
BDO Unibank, Inc.BDO11.941.27
China Banking CorporationCHIB4.540.60
East West Banking CorporationEW3.700.35
Metropolitan Bank & Trust CompanyMBT11.770.70
Philippine Business BankPBB12.670.41
Philippine Bank of Communications, Inc.PBC10.570.62
Philippine National BankPNB1.340.20
Rizal Commercial Banking CorporationRCB6.200.41
Union Bank of the PhilippinesUBP10.781.35

Industrial

NameTickerEV/EBITDAP/B
Alsons Consolidated Resources, Inc.ACR5.810.61
Cemex Holdings Philippines, Inc.CHP4.550.36
Cirtek Holdings Philippines CorporationTECH8.901.31
Crown Asia Chemicals CorporationCROWN2.630.71
First Gen CorporationFGEN4.570.74
First Philippine Holdings CorporationFPH4.580.31
Holcim Philippines, Inc.HLCM5.561.18
Integrated Micro-Electronics, Inc.IMI9.600.90
Ionics, Inc.ION2.090.24
Mabuhay Vinyl CorporationMVC3.400.91
Macay Holdings, Inc.MACAY6.080.88
Manila Water Company, Inc.MWC9.311.01
PetroEnergy Resources CorporationPERC3.600.43
Phinma CorporationPHN4.530.64
Pryce CorporationPPC3.781.12
RFM CorporationRFM5.051.24
SFA Semicon Philippines CorporationSSP1.970.42
Victorias Milling Company, Inc.VMC3.760.72
Vitarich CorporationVITA5.991.22

Holding Firms

NameTickerEV/EBITDAP/B
Aboitiz Equity Ventures, Inc.AEV8.64 *1.33
Alliance Global Group, Inc.AGI9.710.53
Cosco Capital, Inc.COSCO2.240.45
DMCI Holdings, Inc.DMC5.151.20
Jolliville Holdings CorporationJOH9.130.66
Lopez Holdings CorporationLPZ5.360.21
San Miguel CorporationSMC7.410.69
Seafront Resources CorporationSPM5.01 **0.59
Top Frontier Investment Holdings, Inc.TFHI6.190.25
* Estimated for the twelve months ending December 2021
** For the twelve months ended June 2021

Property

NameTickerEV/EBITDAP/B
8990 Holdings, Inc.HOUSE12.071.23
Belle CorporationBEL10.880.46
Cebu Landmasters, Inc.CLI13.660.97
Century Properties Group, Inc.CPG12.53 *0.24
City & Land Developers, Inc.LAND6.290.54
Cityland Development CorporationCDC3.790.44
D.M. Wenceslao & Associates, Inc.DMW12.601.01
Filinvest Land, Inc.FLI11.590.32
Global-Estate Resorts, Inc.GERI8.420.32
Megaworld CorporationMEG10.830.52
Robinsons Land CorporationRLC8.170.74
Rockwell Land CorporationROCK7.820.39
Sta. Lucia Land, Inc.SLI11.211.18
Vistamalls, Inc.STR10.271.10
* For the twelve months ended June 2021

Services

NameTickerEV/EBITDAP/B
Asian Terminals, Inc.ATI4.441.42
Centro Escolar UniversityCEU10.39 *0.60
Grand Plaza Hotel CorporationGPH7.970.92
Harbor Star Shipping Services, Inc.TUGS12.450.80
iPeople, Inc.IPO7.910.73
Lorenzo Shipping CorporationLSC4.571.48
Metro Retail Stores Group, Inc.MRSGI4.750.58
Robinsons Retail Holdings, Inc.RRHI7.151.36
SSI Group, Inc.SSI5.020.37
STI Education Systems Holdings, Inc.STI7.550.43
Waterfront Philippines, Inc.WPI9.160.14
* For the twelve months ended May 2021

Mining & Oil

NameTickerEV/EBITDAP/B
Apex Mining Company, Inc.APX3.691.08
Atlas Consolidated Mining & Development CorporationAT4.200.56
Benguet CorporationBC1.910.56
Global Ferronickel Holdings, Inc.FNI1.671.08
Marcventures Holdings, Inc.MARC2.140.83
Oriental Peninsula Resources Group, Inc.ORE2.210.32
Philex Mining CorporationPX7.370.91

Featured Image: Katrina Tuliao

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