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Michael Hamlett Jr
Michael Hamlett Jr
Articles (70)  | Author's Website |

Nam Tai Property

August 22, 2014 | About:

Nam Tai Property Inc. (NYSE:NTP) is a company based in China and is engaged in the business of real estate development and management. I stumbled upon this company using Guru Focus' All-in-One Sceener. I set the screener with these parameters: dividend yield of at least 1.1%, paying dividends for at least a year, price-to-free cash flow ratio under 10 and a price-to-book ratio under 1, with a current ratio of at least one, excluding over-the-counter stocks. Only 12 stocks met this criteria, which is good news considering how overvalued the market is. I wasn't expecting to find more than 5 businesses to meet the criteria of this screener.

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NTP is currently priced at book value and has a dividend yield of 2.9%. It has been paying dividends since 1991, but the dividends have not been very consistent and have fluctuated, which could be a red flag for some investors. On the brighter side, NTP doesn't have any debt and has a current ratio of 6.88, which means it has enough cash and other current assets to pay its liabilities within the next year almost 7 times over. NTP is also priced at 8 times its cash flow generating ability. The company currently has two properties that it has redeveloped and is collecting rent from its commercial leases.

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In a market environment where almost every asset is overpriced, and overvalued, NTP seems like a good asset. With a hefty amount of cash and priced at 8 times its cash generating ability, NTP is a solid company. Throw in a dividend yield of 2.9%, and NTP seems like it could be a good addition to an investor's portfolio.

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Rating: 2.3/5 (3 votes)

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Comments

swnyc2
Swnyc2 - 1 year ago

Anyone interested in knowing more about this company can read a very nice analysis and commentary here:

http://www.gurufocus.com/news/223291/nam-tai--value-idea-contest-submission

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