As I already wrote here I am moving my long term portfolio to a Dividend-focused portfolio.
Payout ratio is 79% (a little bit high but bearable) and a Yeld on Cost of 24.53% (5 years)
The company has No debts and in this moment everything looks good.
Returns are positive, steady and growing:
ROE 121.53%, ROA 108.34% and ROC 174,31%
Since this company is on my watching list the price dropped 24%, and now I can see it is really undervalued.
The Peter Lynch Value gives a fair price of 322$ (+157%).
The Discounted Cash Flow gives a fair value of 366$ (+192%).
The drop of the price is explained by decrease over the last year in Revenue (-16%) that gave the company other negative sides; EPS (-23%), Free cash flow (-29%).
The Book Value is always growing (+29%).
The downward trend is not stopped, so I could wait again but as I wrote in before, I decided to stop with other shares and put part of that money on this dividend focused.
Now My portfolio is balanced this way :
Services : 46%
Technology : 18%
Basic Materials : 13%
and others to reach 100%