Glow Energy PCL (GLOW TB)
Glow Energy PCL, a Thailand-based company with a market capitalization of US$4,180m, specializes in generating and distributing electricity, steam, and water for industrial uses. They serve major clients like the Electricity Generating Authority of Thailand and also supply demineralized water. Learn how Andrew Stotz, PhD, CFA, faced challenges in guiding his team towards financial success and developed innovative tools to simplify finance concepts.
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Glow Energy PCL (GLOW TB)
Glow Energy PCL (GLOW TB) Market cap: US$4,180m Thailand-based, generates and distributes electricity, steam and water for industrial uses Andrew Stotz, PhD, CFA Major client is main government utility, the Electricity Generating Authority of Thailand Also supplies clarified and demineralized water as secondary products to customers Production facilities in Thailand and Laos BecomeaBetterInvestor.net 7 April 2019 2
Before we start, here s the story of World Class Benchmarking Andrew Stotz, PhD, CFA BecomeaBetterInvestor.net 7 April 2019 3 3
The story As a sell-side analyst, I built a successful career analyzing the performance of companies Andrew Stotz, PhD, CFA 1995 co-founded CoffeeWORKS, a B2B coffee roaster in Bangkok, with my best friend, Dale Since I worked full-time at an investment bank, my role then was ONLY to advise the management team about how to make CoffeeWORKS financially World Class Dale Me BecomeaBetterInvestor.net 7 April 2019 Source: CoffeeWORKS archives 4
But, helping the team turned out to be harder than I thought I started with the traditional analysis that I did at work profit margin, ROE, and growth But, the managers didn t understand these concepts Andrew Stotz, PhD, CFA Next, since I was not only a practitioner but also a teacher of finance, I tried to teach them Bad news, the team had little interest in learning finance I needed to develop a tool for managers with no knowledge or interest in finance BecomeaBetterInvestor.net 7 April 2019 5
This challenged me to use the resources I had to find a better way to guide the team I had a database of the financial performance of every company in the world Andrew Stotz, PhD, CFA I knew which financial ratios matter most to increase the value of a business And, I had experience simplifying finance concepts, built through years of teaching finance BecomeaBetterInvestor.net 7 April 2019 6
From these resources, I created the World Class Benchmarking scorecard to guide the team The scorecard FOCUSES the management team on only ONE financial measure The scorecard is EASY to understand since it contains NO financial ratios Andrew Stotz, PhD, CFA Importantly, it s NOT OVERWHELMING; the one-page format arrives monthly Like a sports scorecard, it DOESN T CHANGE, so the team knows when they are winning Finally, it CHALLENGES the team to become financially world class by beating global peers Source: https://www.golf-monthly.co.uk/features/golf-scorecard-rules-simple-but- important-67737 BecomeaBetterInvestor.net 7 April 2019 7
So lets put the World Class Benchmarking scorecard into action! First, the single measure is Profitable Growth, a combined score of profitability and growth Andrew Stotz, PhD, CFA Second, we rank a company s performance against its global peers 1 is best, 10 is worst Profitable Growth '14 '15 '16 '17 PTM 7 8 6 Third, the scorecard presents five years, including the most recent 12 months 5 4 Profitability Growth '14 '15 '16 '17 PTM '14 '15 '16 '17 PTM 6 8 6 5 4 7 8 2 3 3 Asset utilization Profit margin Sales growth Margin change '14 '15 '16 '17 PTM '14 '15 '16 '17 PTM '14 '15 '16 '17 PTM '14 '15 '16 '17 PTM So let s use it now! 5 6 4 5 6 6 7 7 5 4 8 8 1 5 10 6 8 4 3 2 Benchmarked against 790 large Materials companies worldwide. BecomeaBetterInvestor.net 7 April 2019 8
Glow Energy PCL (GLOW TB) Profitable Growth '14 '15 '16 '17 PTM 2 2 1 Andrew Stotz, PhD, CFA 2 1 Profitable Growth rank of 1 was up compared to the prior period s 2nd rank This was World Class performance compared to 280 large Utilities companies worldwide Profitability Growth '14 '15 '16 '17 PTM 1 1 1 '14 '15 '16 '17 PTM 4 6 7 1 1 7 6 Asset utilization Profit margin Sales growth Margin change '14 '15 '16 '17 PTM 3 4 4 '14 '15 '16 '17 PTM 3 3 2 '14 '15 '16 '17 PTM 6 9 10 '14 '15 '16 '17 PTM 4 3 3 4 3 2 2 10 6 6 6 Benchmarked against 280 large Utilities companies worldwide. Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year s data is based on the past 12 months (PTM) of published data BecomeaBetterInvestor.net 7 April 2019 9
Glow Energy PCL (GLOW TB) Profitable Growth '14 '15 '16 '17 PTM 2 2 1 Andrew Stotz, PhD, CFA 2 1 The recent Profitability rank of 1 was better than its Growth rank of 6 Profitability rank of 1 was the same compared to the prior period s 1st rank This was World Class performance compared to its peers Profitability Growth '14 '15 '16 '17 PTM 1 1 1 '14 '15 '16 '17 PTM 4 6 7 1 1 7 6 Asset utilization Profit margin Sales growth Margin change '14 '15 '16 '17 PTM 3 4 4 '14 '15 '16 '17 PTM 3 3 2 '14 '15 '16 '17 PTM 6 9 10 '14 '15 '16 '17 PTM 4 3 3 4 3 2 2 10 6 6 6 Benchmarked against 280 large Utilities companies worldwide. Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year s data is based on the past 12 months (PTM) of published data BecomeaBetterInvestor.net 7 April 2019 10
Glow Energy PCL (GLOW TB) Profitable Growth '14 '15 '16 '17 PTM 2 2 1 Andrew Stotz, PhD, CFA 2 1 Growth rank of 6 was up compared to the prior period s 7th rank This was below-average performance compared to its peers Profitability Growth '14 '15 '16 '17 PTM 1 1 1 '14 '15 '16 '17 PTM 4 6 7 1 1 7 6 Asset utilization Profit margin Sales growth Margin change '14 '15 '16 '17 PTM 3 4 4 '14 '15 '16 '17 PTM 3 3 2 '14 '15 '16 '17 PTM 6 9 10 '14 '15 '16 '17 PTM 4 3 3 4 3 2 2 10 6 6 6 Benchmarked against 280 large Utilities companies worldwide. Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year s data is based on the past 12 months (PTM) of published data BecomeaBetterInvestor.net 7 April 2019 11
Glow Energy PCL (GLOW TB) Profitable Growth '14 '15 '16 '17 PTM 2 2 1 Andrew Stotz, PhD, CFA 2 1 Profitability Growth '14 '15 '16 '17 PTM 1 1 1 '14 '15 '16 '17 PTM 4 6 7 1 1 7 6 Asset utilization Profit margin Sales growth Margin change '14 '15 '16 '17 PTM 3 4 4 '14 '15 '16 '17 PTM 3 3 2 '14 '15 '16 '17 PTM 6 9 10 '14 '15 '16 '17 PTM 4 3 3 4 3 2 2 10 6 6 6 Benchmarked against 280 large Utilities companies worldwide. Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year s data is based on the past 12 months (PTM) of published data BecomeaBetterInvestor.net 7 April 2019 12
Want to be world class? If you re a CEO Email me to see how the World Class Benchmarking scorecard can make YOUR company financially World Class If you re an investor Leave a company name in the comments below to see how it ranks I challenge YOU to become World Class! Email: me@andrewstotz.com
