Is There An Opportunity With Bumi Armada Berhad's (KLSE:ARMADA) 36% Undervaluation?
Sep 18
Malaysian (KLSE) Energy Services Industry Analysis
UpdatedSep 22, 2023
DataAggregated Company Financials
Companies23
- 7D0.6%
- 3M8.8%
- 1Y17.6%
- YTD6.5%
The Energy Services is pretty flat in the last 7 days, but Dayang Enterprise Holdings Bhd has stood out, gaining 4.3%. As for the the longer term, the industry is up 18% over the past 12 months. Earnings are forecast to grow by 17% annually.
Industry Valuation and Performance
Has the Malaysian Energy Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 22 Sep 2023 | RM32.2b | RM26.2b | RM883.4m | 11.5x | 36.4x | 1.2x |
| Sun, 20 Aug 2023 | RM30.7b | RM25.1b | RM237.7m | 9.9x | 129.1x | 1.2x |
| Tue, 18 Jul 2023 | RM30.8b | RM24.5b | RM639.9m | 9.4x | 48.1x | 1.3x |
| Thu, 15 Jun 2023 | RM29.6b | RM22.2b | RM502.2m | 10.7x | 58.9x | 1.3x |
| Sat, 13 May 2023 | RM31.4b | RM21.4b | RM417.2m | 12.6x | 75.2x | 1.5x |
| Mon, 10 Apr 2023 | RM32.5b | RM21.4b | RM422.9m | 13.1x | 76.9x | 1.5x |
| Wed, 08 Mar 2023 | RM33.0b | RM20.2b | RM287.3m | 14.4x | 114.9x | 1.6x |
| Fri, 03 Feb 2023 | RM34.1b | RM19.1b | -RM739,460,229.00 | 16.2x | -46.1x | 1.8x |
| Sun, 01 Jan 2023 | RM30.1b | RM19.8b | -RM656,704,188.00 | 14.9x | -45.8x | 1.5x |
| Tue, 29 Nov 2022 | RM28.1b | RM19.3b | -RM731,009,188.00 | 16.9x | -38.4x | 1.5x |
| Thu, 27 Oct 2022 | RM24.8b | RM18.6b | -RM944,943,466.00 | 16.4x | -26.3x | 1.3x |
| Sat, 24 Sep 2022 | RM26.9b | RM18.6b | -RM944,943,466.00 | 17.2x | -28.5x | 1.5x |
| Mon, 22 Aug 2022 | RM26.7b | RM22.2b | -RM73,925,225.00 | 14.7x | -361.3x | 1.2x |
| Wed, 20 Jul 2022 | RM23.4b | RM21.8b | -RM206,470,225.00 | 13.2x | -113.1x | 1.1x |
| Fri, 17 Jun 2022 | RM24.5b | RM21.8b | -RM214,470,225.00 | 11.8x | -114.3x | 1.1x |
| Sun, 15 May 2022 | RM26.4b | RM21.2b | -RM164,838,153.00 | 13.4x | -160.3x | 1.2x |
| Tue, 12 Apr 2022 | RM26.0b | RM15.4b | -RM44,052,712.00 | 12.2x | -591.1x | 1.7x |
| Thu, 10 Mar 2022 | RM30.6b | RM26.8b | -RM2,656,521,771.00 | 13.1x | -11.5x | 1.1x |
| Sat, 05 Feb 2022 | RM33.3b | RM26.9b | -RM1,948,872,817.00 | 16.3x | -17.1x | 1.2x |
| Mon, 03 Jan 2022 | RM31.6b | RM26.9b | -RM1,324,993,171.00 | 14.6x | -23.8x | 1.2x |
| Wed, 01 Dec 2021 | RM31.3b | RM28.2b | -RM637,643,171.00 | 13.5x | -49x | 1.1x |
| Fri, 29 Oct 2021 | RM34.8b | RM28.4b | -RM1,031,788,100.00 | 15.7x | -33.7x | 1.2x |
| Sun, 26 Sep 2021 | RM30.2b | RM29.2b | RM644.2m | 13.4x | 46.9x | 1x |
| Tue, 24 Aug 2021 | RM31.9b | RM29.2b | RM668.8m | 15.7x | 47.7x | 1.1x |
| Wed, 30 Jun 2021 | RM34.2b | RM29.2b | RM668.8m | 16.2x | 51.1x | 1.2x |
| Sat, 03 Apr 2021 | RM41.6b | RM28.3b | RM218.4m | 19.9x | 190.4x | 1.5x |
| Tue, 05 Jan 2021 | RM42.4b | RM29.5b | -RM3,981,314,018.00 | 20.4x | -10.7x | 1.4x |
| Fri, 09 Oct 2020 | RM41.5b | RM27.6b | -RM3,966,613,395.00 | 16x | -10.5x | 1.5x |
Price to Earnings Ratio
-10.5x
Current Industry PE
- Investors are pessimistic on the Malaysian Energy Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 36.4x which is lower than its 3-year average PE of 40.4x.
- The industry is trading close to its 3-year average PS ratio of 1.3x.
Past Earnings Growth
- Total earnings for the Energy Services industry have gone up over the last three years, and the industry is now profitable.
- Revenues have remained mostly flat. This means that the industry has become more efficient since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the Malaysian Energy industry?
| MY Market | 0.36% | |
| Energy | 0.59% | |
| Energy Services | 0.56% | |
| Oil and Gas Drilling | 4.00% | |
| Oil and Gas Services | 0.32% | |
Industry PE
- Investors are most optimistic about the Oil and Gas Drilling industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 36.1% and investors are willing to pay a premium for that growth.
- Investors are most pessimistic about the Oil and Gas Services industry, which is trading below its 3-year average of 63.1x.
Forecasted Growth
- Analysts are most optimistic on the Oil and Gas Drilling industry, expecting annual earnings growth of 36% over the next 5 years.
- In contrast, the Oil and Gas Services industry is expected to see its earnings grow by 16% per year 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 | |
|---|---|---|---|---|---|
| DAYANG Dayang Enterprise Holdings Bhd | RM1.97 | 7.7% +RM162.1m | 75.9% | PE20x | |
| ICON Icon Offshore Berhad | RM0.13 | 23.8% +RM67.7m | 23.8% | PE2.2x | |
| WASCO Wasco Berhad | RM1.07 | 8.6% +RM65.8m | 64.6% | PE48.5x | |
| KNM KNM Group Berhad | RM0.13 | 13.6% +RM60.7m | 13.6% | PS0.5x | |
| ARMADA Bumi Armada Berhad | RM0.56 | 0.9% +RM29.6m | 41.3% | PE4.9x |