Calculating The Intrinsic Value Of Frencken Group Limited (SGX:E28)
Nov 24
Singaporean (SGX) Machinery Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies31
- 7D5.3%
- 3M21.3%
- 1Y7.3%
- YTD6.9%
Over the last 7 days, the Machinery industry has risen 5.3%, driven by gains from Yangzijiang Shipbuilding (Holdings) of 6.8%. During this same period, the Hoe Leong underperformed, falling 33%. This takes the industry's 12 month performance to a gain of 7.3%. Earnings are forecast to grow by 29% annually.
Industry Valuation and Performance
Has the Singaporean Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 29 Nov 2022 | S$12.4b | S$14.0b | S$525.4m | 9x | 23.7x | 0.9x |
| Thu, 27 Oct 2022 | S$10.9b | S$14.1b | S$573.2m | 7.9x | 19.1x | 0.8x |
| Sat, 24 Sep 2022 | S$11.2b | S$14.2b | S$604.9m | 8.5x | 18.5x | 0.8x |
| Mon, 22 Aug 2022 | S$10.1b | S$14.3b | S$624.6m | 9x | 16.2x | 0.7x |
| Wed, 20 Jul 2022 | S$9.5b | S$13.9b | -S$32,625,410.00 | 9x | -292x | 0.7x |
| Fri, 17 Jun 2022 | S$10.2b | S$13.9b | -S$30,487,097.00 | 9.4x | -335.1x | 0.7x |
| Sun, 15 May 2022 | S$9.4b | S$13.8b | S$10.3m | 9.6x | 911.1x | 0.7x |
| Tue, 12 Apr 2022 | S$13.0b | S$14.0b | S$49.7m | 10.1x | 261.3x | 0.9x |
| Thu, 10 Mar 2022 | S$11.8b | S$14.0b | -S$144,905,151.00 | 10.5x | -81.4x | 0.8x |
| Sat, 05 Feb 2022 | S$11.4b | S$13.3b | -S$240,623,587.00 | 11.4x | -47.3x | 0.9x |
| Mon, 03 Jan 2022 | S$11.6b | S$13.3b | -S$235,784,611.00 | 12.2x | -49.2x | 0.9x |
| Wed, 01 Dec 2021 | S$11.5b | S$13.4b | -S$228,914,705.00 | 11.7x | -50.4x | 0.9x |
| Fri, 29 Oct 2021 | S$12.2b | S$13.1b | -S$426,354,132.00 | 12.8x | -28.5x | 0.9x |
| Sun, 26 Sep 2021 | S$12.3b | S$13.1b | -S$430,821,207.00 | 11.8x | -28.5x | 0.9x |
| Tue, 24 Aug 2021 | S$11.6b | S$13.2b | -S$430,814,888.85 | 13x | -27x | 0.9x |
| Wed, 30 Jun 2021 | S$11.2b | S$13.2b | -S$430,814,888.85 | 13.7x | -25.9x | 0.8x |
| Sat, 03 Apr 2021 | S$10.5b | S$12.8b | -S$191,166,508.16 | 13.1x | -54.9x | 0.8x |
| Tue, 05 Jan 2021 | S$8.6b | S$12.5b | S$2.0m | 12.6x | 4200.9x | 0.7x |
| Fri, 09 Oct 2020 | S$8.0b | S$12.6b | S$175.1m | 9.4x | 45.6x | 0.6x |
| Thu, 02 Jul 2020 | S$6.7b | S$13.3b | S$406.1m | 9.5x | 16.6x | 0.5x |
| Sun, 05 Apr 2020 | S$6.5b | S$14.3b | S$529.8m | 6x | 12.2x | 0.5x |
| Wed, 08 Jan 2020 | S$9.8b | S$15.1b | S$590.5m | 10.4x | 16.6x | 0.6x |
Price to Earnings Ratio
13.2x
Current Industry PE
- Investors are pessimistic on the Singaporean Machinery 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 23.7x which is lower than its 3-year average PE of 209x.
- The industry is trading close to its 3-year average PS ratio of 0.72x.
Past Earnings Growth
- The earnings for companies in the Machinery industry have declined 9.0% per year over the last three years,
- Revenues have also declined 2.7% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Singaporean Industrials industry?
| SG Market | -0.57% | |
| Industrials | 1.06% | |
| Machinery | 5.27% | |
| Construction Machinery and Vehicles | 5.75% | |
| Industrial Machinery | 2.29% | |
| Agricultural Machinery | 0% | |
Industry PE
- Investors are most optimistic about the Construction Machinery and Vehicles industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 31.3%, which is higher than its past year's earnings decline of 2.0% per year.
- Investors are most pessimistic about the Industrial Machinery industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Construction Machinery and Vehicles industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings decline of 2.0% per year.
- In contrast, the Industrial Machinery industry is expected to see its earnings grow by 7.2% 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 | |
|---|---|---|---|---|---|
| BS6 Yangzijiang Shipbuilding (Holdings) | S$1.41 | 6.8% +S$355.6m | 8.5% | PE7.3x | |
| S51 Sembcorp Marine | S$0.13 | 2.3% +S$94.2m | 61.4% | PS2x | |
| E28 Frencken Group | S$1.11 | 5.7% +S$25.6m | -48.4% | PE8.9x | |
| M14 InnoTek | S$0.45 | 7.1% +S$6.9m | -41.9% | PE40x | |
| 564 Spindex Industries | S$0.94 | 4.4% +S$4.6m | -19.7% | PE6.3x |
