First of all a recap all my watchlist companies from previous posts. So far two have been reviewed. They are Cerillion and OTIS Worldwide. The ISA rules allow me to invest £20,000 a year. I have decided to make two transactions each of £10,000 each.
The next addition is Alpha Group. A SimplyWallstreet outline of the companies follow.
Alpha Group International plc provides foreign exchange risk management and alternative banking solutions in the United Kingdom, Europe, Canada, and internationally. The company offers forward currency contracts, option contracts, foreign exchange spot transactions, and payments collections services; and intermediary advisory services to institutional clients. It serves corporates and institutions.
The company was formerly known as Alpha FX Group PLC and changed its name to Alpha Group International plc in December 2022. Alpha Group International plc was founded in 2009 and is based in London, the United Kingdom.
The table below is based on the on the ratio’s revealed in Phil Oakley’s book How to Pick Quality Shares. The information is provided by TradingView.
The numbers I look at are the turnover figures. Are they increasing steadily over any five year period. Alpa Group passes this test.
Ebit. I like Edit numbers in the range of 15% and this test is passed.
Return on Capital Employed. The higher the better. This is the in-effect the companies interest rate.
CROCI. This is the free cash flow as a percentage of the capital employed. Phil Oakley suggests a return of 10%. Alpha passes this test.
From this point I look at other websites for confirmation of the above ratio’s. The debt to equity of which Alpha has none, Debt coverage, in this case Alpha has no need. Interest Coverage. Again there is no need as Alpha hasn’t any debt.
I do look at the companies accounts looking for statements made by the board, trying to gauge their near future prospects.
For income seekers Alpha only has 0.7% yield and may not be suitable for their needs but as quality investers are normally total return investers I am happy to add Alpha Group to my watchlist for investment consideration next year which will be based on price to intrinsic value.
I wish you successful investing.