Is Nestlé (Malaysia) Berhad (KLSE:NESTLE) Using Too Much Debt?
May 30
Malaysian (KLSE) Market Analysis & Valuation
UpdatedMay 31, 2023
DataAggregated Company Financials
Companies974
- 7D-0.7%
- 3M-2.4%
- 1Y-7.2%
- YTD-2.4%
Over the last 7 days, the market has remained flat, although notably the Healthcare sector declined by 4.1%. The past year hasn't been profitable, with the market dropping 7.2%. Earnings are forecast to grow by 11% annually.
Market Valuation and Performance
Has the Malaysian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 31 May 2023 | RM1.7t | RM1.3t | RM47.0b | 13.5x | 35.2x | 1.3x |
| Fri, 28 Apr 2023 | RM1.7t | RM1.2t | RM119.0b | 13.3x | 14.1x | 1.4x |
| Sun, 26 Mar 2023 | RM1.6t | RM1.2t | RM117.4b | 13.1x | 13.8x | 1.3x |
| Tue, 21 Feb 2023 | RM1.7t | RM1.2t | RM139.1b | 13.6x | 12.4x | 1.4x |
| Thu, 19 Jan 2023 | RM1.7t | RM1.2t | RM138.7b | 13.2x | 12.4x | 1.4x |
| Sat, 17 Dec 2022 | RM1.7t | RM1.2t | RM138.3b | 13.2x | 12.1x | 1.4x |
| Mon, 14 Nov 2022 | RM1.6t | RM1.1t | RM134.1b | 13.6x | 12.2x | 1.4x |
| Wed, 12 Oct 2022 | RM1.6t | RM1.1t | RM135.5b | 13.1x | 11.5x | 1.4x |
| Fri, 09 Sep 2022 | RM1.7t | RM1.1t | RM136.1b | 13.8x | 12.2x | 1.5x |
| Sun, 07 Aug 2022 | RM1.7t | RM1.1t | RM99.7b | 14.4x | 16.7x | 1.5x |
| Tue, 05 Jul 2022 | RM1.6t | RM1.1t | RM100.8b | 14x | 15.8x | 1.5x |
| Thu, 02 Jun 2022 | RM1.7t | RM1.1t | RM102.9b | 14.6x | 16.7x | 1.6x |
| Sat, 30 Apr 2022 | RM1.8t | RM1.0t | RM97.0b | 15.7x | 18.4x | 1.7x |
| Mon, 28 Mar 2022 | RM1.8t | RM1.0t | RM99.4b | 15.3x | 17.9x | 1.7x |
| Wed, 23 Feb 2022 | RM1.8t | RM1.0t | RM93.1b | 15.6x | 18.8x | 1.7x |
| Fri, 21 Jan 2022 | RM1.7t | RM992.9b | RM93.5b | 15.5x | 18.3x | 1.7x |
| Sun, 19 Dec 2021 | RM1.7t | RM995.0b | RM94.1b | 15.3x | 18x | 1.7x |
| Tue, 16 Nov 2021 | RM1.8t | RM984.6b | RM93.8b | 15.8x | 18.7x | 1.8x |
| Thu, 14 Oct 2021 | RM1.8t | RM984.9b | RM93.5b | 16.3x | 19.4x | 1.8x |
| Sat, 11 Sep 2021 | RM1.8t | RM980.5b | RM95.1b | 16.3x | 18.7x | 1.8x |
| Mon, 09 Aug 2021 | RM1.7t | RM982.3b | RM95.7b | 16.7x | 17.8x | 1.7x |
| Sun, 02 May 2021 | RM1.8t | RM918.2b | RM76.1b | 19.4x | 23.6x | 2x |
| Wed, 03 Feb 2021 | RM1.7t | RM891.4b | RM61.4b | 19.4x | 27.9x | 1.9x |
| Sat, 07 Nov 2020 | RM1.6t | RM897.6b | RM52.4b | 17.5x | 30.1x | 1.8x |
| Fri, 31 Jul 2020 | RM1.7t | RM903.8b | RM51.0b | 18.8x | 32.6x | 1.8x |
Price to Earnings Ratio
24.3x
Current Market PE
- Investors are optimistic on the Malaysian market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 35.2x which is higher than its 3-year average PE of 20.2x.
Past Earnings Growth
- The earnings for Malaysian listed companies have declined 9.5% per year over the last three years.
- Meanwhile revenues for these companies have grown 9.9% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Sector Trends
Which sectors have driven the changes within the Malaysian Market?
| MY Market | -0.74% | |
| Tech | 2.70% | |
| Utilities | 1.69% | |
| Telecom | 1.13% | |
| Real Estate | 0.014% | |
| Industrials | -0.42% | |
| Energy | -0.74% | |
| Financials | -0.90% | |
| Materials | -1.03% | |
| Consumer Discretionary | -1.62% | |
| Consumer Staples | -2.59% | |
| Healthcare | -4.12% | |
Sector PE
- Investors favour the Industrials sector the most for future growth, which is trading above its 3-year average PE ratio of 42.7x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 11.7%, which is higher than its past year's earnings growth of 3.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 36% over the next 5 years.
- This is better than its past earnings growth rate of 14% per year.
- In contrast, the Consumer Staples industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| CDB Celcomdigi Berhad | RM4.57 | 4.1% +RM2.1b | 29.5% | PE63.4x | Telecom | |
| YTL YTL Corporation Berhad | RM0.91 | 16.7% +RM1.4b | 42.2% | PE17.5x | Utilities | |
| INARI Inari Amertron Berhad | RM2.46 | 14.4% +RM1.2b | -12.5% | PE26.7x | Tech | |
| YTLPOWR YTL Power International Berhad | RM1.32 | 11.9% +RM1.1b | 71.4% | PE7x | Utilities | |
| MAXIS Maxis Berhad | RM4.27 | 2.6% +RM861.3m | 12.7% | PE27.8x | Telecom |
Market Insights
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