EURO-MED Outlook

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Euro-Med Laboratories Phils. (EURO)

EURO is engaged in the manufacture of pharmaceutical products such as large and small volume parenterals and other solutions. The Company also manufactures sterile water for injection, and other solutions such as ophthalmic, inhalation, irrigation and dialysis.

Sector

Industrial, Chemical

Stock Classification

Defensive

Macroeconomic Analysis

EURO is considered a defensive stock which has very little movement against a fluctuating economy. However, a defensive can perform better than a flat or down market.

Net Income rose 8.91% from previous year

58% of Outstanding Shares is owned by U.S. Automotive Co., Inc.

20% of Outstanding Shares is owned by U.S. AUTOCO

Euro-Med’s customers are hospitals, clinics, drugstores, medical distributors and traders as well as industrial/commercial accounts. The company’s customer base is composed of more than 8000 institutions nationwide.

Performance Highlights

3Q2014 3Q2015 %Year On Year
Revenue 269,209,397 273,981,136 1.741630489
Net Income After Tax 34,977,484 41,734,070 16.18961678

Cash

as of Sept. 30, 2015 2014 % Year On Year
Cash on Hand and Revolving Funds 26,491,206.00 43,366,486.00
Cash in Banks 832,698,826.00 798,839,439.00
859,190,032.00 842,205,925.00 1.976757919

Currently the company holds the trademarks and rights to the following: Lidex, Lidemol, Synelar and Dobutrex.

Investment Rationale

The company’s market capitalization is PHP7,031,760,323.40 and pay regular cash dividends. We see EURO as an ideal long term investment with an outlook of about 12 to 18 months with an estimated 60%++ gains.

Price Movement Analysis

Benchmark Price (Market Cap / Outstanding Shares) 1.71
Closing Price as of this writing 1.71
52 wk High 2.89
52 wk Low 1.06
SMA(20) CrossUnder EMA(13) HOLD
Parabolic SAR Bullish

Recommendation

Accumulate
Entry Price: 1.68
Target Price 2.8
Holding Period 12 months or shorter

Chart:

EURO-11222015

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