Posted by kcchongnz > Jun 1, 2013 06:29 PM

Is Eforce a good company? 

Posted by Joshua Lee > May 31, 2013 10:46 AM | Report Abuse 
Anyone has any views on EFORCE? With Bursa 'heating up' now, the prospect for EFORCE looks good. And it gives good div too! 

It does appear that Eforce is a reasonably good company with steady revenue and net profit for the past 2 years. ROE and ROIC though meet my minimum requirement, I would expect this type of technology, asset light company should have ROE and ROIC of more than 20% as they generally have high margins. It needs to have more jobs to increase its asset turnover in order to increase its ROE. 

Well you if know this company well and it is good in your opinion, it is good to invest as its valuation is ok lah as shown in my assessment below: 

Eforce a Good company? 0.330
Good governance ?
Durable business ?
Growth Neutral
ROE Yes 13% >12% 
ROTC Yes 15% >WACC 
Balance sheet Yes D/E 0.03 
Cash flow Yes

Screens for investing
ROTC Yes 15% >WACC 
P/B Yes 1.7 <2.0 
PE ratio Yes 13.0 <20