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CCGM (China CGame) Owner Earnings per Share (TTM) : 0.00 (As of Sep. 2011)


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What is China CGame Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

China CGame's Owner Earnings per Share (TTM) ended in Sep. 2011 was $0.00. It's Price-to-Owner-Earnings ratio for today is 0.


The historical rank and industry rank for China CGame's Owner Earnings per Share (TTM) or its related term are showing as below:



CCGM's Price-to-Owner-Earnings is not ranked *
in the Construction industry.
Industry Median: 12.83
* Ranked among companies with meaningful Price-to-Owner-Earnings only.

China CGame's Earnings per Share (Diluted) for the three months ended in Sep. 2011 was $-0.13. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2011 was $-0.76. It's PE Ratio (TTM) ratio for today is At Loss.

China CGame's EPS without NRI for the three months ended in Sep. 2011 was $-0.14. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2011 was $-1.28. It's PE Ratio without NRI ratio for today is At Loss.


China CGame Owner Earnings per Share (TTM) Historical Data

The historical data trend for China CGame's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

China CGame Owner Earnings per Share (TTM) Chart

China CGame Annual Data
Trend Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10
Owner Earnings per Share (TTM)
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China CGame Quarterly Data
Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11
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Competitive Comparison of China CGame's Owner Earnings per Share (TTM)

For the Engineering & Construction subindustry, China CGame's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


China CGame's Price-to-Owner-Earnings Distribution in the Construction Industry

For the Construction industry and Industrials sector, China CGame's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where China CGame's Price-to-Owner-Earnings falls into.



China CGame Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

China CGame's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income -16.74
Depreciation, Depletion and Amortization 5.95
Change In Deferred Tax 0.00
5Y Average of Maintenance Capital Expenditure 1.06
Change In Working Capital 9.93
Shares Outstanding (Diluted Average) 20.04

1. Start with "Net Income" from income statement. China CGame's Net Income for the trailing twelve months (TTM) ended in Sep. 2011 was $-16.74 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. China CGame's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2011 was $5.95 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. China CGame's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2011 was $0.00 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $1.06 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

China CGame's 5-Year Average Maintenance Capital Expenditure = $1.06 Mil

5. "Change In Working Capital" is from cashflow statement. China CGame's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2011 was $9.93 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. China CGame's Shares Outstanding (Diluted Average) for the months ended in Sep. 2011 was 20.040 Mil.

China CGame's Onwer Earnings Per Share for Sep. 2011 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( -16.74 +5.946+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-1.0628574797908+9.927)/20.040
=0.00

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=0.01/0.00
=0

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


China CGame Owner Earnings per Share (TTM) Related Terms

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China CGame Business Description

Industry
Traded in Other Exchanges
N/A
Address
105 Baishi Road, Jiuzhou West Avenue, Zhuhai, CHN, 519070
China CGame Inc through its subsidiaries, is engaged in the design, manufacturing, installation, and maintenance of structural glass and light structure building systems in China, Australia, southeast Asia, the Middle East, and the United States.
Executives
G Michael Bennett officer: Vice President of Finance 4/F, NO. 3 JINYUAN ROAD, DAXING DISTRICT INDUSTRIAL DEVELOPMENT A, BEIJING F4 102600

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