DB:MQR1

Stock Analysis Report

Executive Summary

Multi-Chem Limited, an investment holding company, distributes information technology (IT) hardware and software, and vendor maintenance related to Internet and network products in Singapore, the People’s Republic of China, Australia, and internationally.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Multi-Chem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MQR1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.9%

MQR1

4.8%

DE Electronic

9.9%

DE Market


1 Year Return

5.8%

MQR1

-27.5%

DE Electronic

-17.5%

DE Market

Return vs Industry: MQR1 exceeded the German Electronic industry which returned -27.5% over the past year.

Return vs Market: MQR1 exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

MQR1IndustryMarket
7 Day8.9%4.8%9.9%
30 Day-7.5%-20.4%-16.6%
90 Day-3.9%-23.6%-24.8%
1 Year10.9%5.8%-26.0%-27.5%-15.0%-17.5%
3 Year-8.5%-22.1%-3.4%-6.6%-17.4%-24.5%
5 Year77.2%36.1%55.2%43.9%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is Multi-Chem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Multi-Chem undervalued compared to its fair value and its price relative to the market?

8.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MQR1 (€0.49) is trading above our estimate of fair value (€0.4)

Significantly Below Fair Value: MQR1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MQR1 is good value based on its PE Ratio (8.9x) compared to the Electronic industry average (16.7x).

PE vs Market: MQR1 is good value based on its PE Ratio (8.9x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MQR1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MQR1 is good value based on its PB Ratio (0.7x) compared to the DE Electronic industry average (1.2x).


Next Steps

Future Growth

How is Multi-Chem forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.4%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Multi-Chem has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Multi-Chem performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MQR1 has high quality earnings.

Growing Profit Margin: MQR1's current net profit margins (1.7%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: MQR1's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: MQR1's earnings growth over the past year (40.8%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: MQR1 earnings growth over the past year (40.8%) exceeded the Electronic industry -7.4%.


Return on Equity

High ROE: MQR1's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Multi-Chem's financial position?


Financial Position Analysis

Short Term Liabilities: MQR1's short term assets (SGD239.9M) exceed its short term liabilities (SGD144.6M).

Long Term Liabilities: MQR1's short term assets (SGD239.9M) exceed its long term liabilities (SGD6.8M).


Debt to Equity History and Analysis

Debt Level: MQR1's debt to equity ratio (20.4%) is considered satisfactory.

Reducing Debt: MQR1's debt to equity ratio has reduced from 40.2% to 20.4% over the past 5 years.

Debt Coverage: MQR1's debt is not well covered by operating cash flow (13.7%).

Interest Coverage: MQR1's interest payments on its debt are well covered by EBIT (38.8x coverage).


Balance Sheet

Inventory Level: MQR1 has a high level of physical assets or inventory.

Debt Coverage by Assets: MQR1's debt is covered by short term assets (assets are 10.3x debt).


Next Steps

Dividend

What is Multi-Chem's current dividend yield, its reliability and sustainability?

5.71%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MQR1's dividend (5.71%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: MQR1's dividend (5.71%) is in the top 25% of dividend payers in the German market (4.97%)


Stability and Growth of Payments

Stable Dividend: MQR1 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MQR1's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.6%), MQR1's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.2yrs

Average board tenure


CEO

Suan Foo (65yo)

no data

Tenure

Mr. Suan Sai Foo Founded Multi-Chem Limited and serves as its Chief Executive Officer. Mr. Foo is responsible for the overall direction and development of Multi-Chem Limited. Previously, he served as the H ...


Board Members

NamePositionTenureCompensationOwnership
Suan Foo
Founderno datano data40.58% SGD17.9m
Juat Hoon Han
Founder32.83yrsno data28.13% SGD12.4m
Fang Foo
GM & Executive Director4.83yrsno data0.087% SGD38.2k
Meng Yeng Wong
Independent Director20.17yrsno data0.0094% SGD4.2k
Keng Lim
Independent Chairman of the Board10.17yrsno datano data
Mok Neo
Independent Director7.58yrsno datano data
Maw Foo
Independent Director5.67yrsno datano data

10.2yrs

Average Tenure

61yo

Average Age

Experienced Board: MQR1's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Multi-Chem Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Multi-Chem Limited
  • Ticker: MQR1
  • Exchange: DB
  • Founded: 1985
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: S$69.373m
  • Listing Market Cap: S$44.146m
  • Shares outstanding: 90.10m
  • Website: https://www.multichem.com.sg

Number of Employees


Location

  • Multi-Chem Limited
  • 18 Boon Lay Way
  • No. 05-113, Tradehub 21
  • Singapore
  • 609966
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MQR1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2000
AWZSGX (Singapore Exchange)YesOrdinary SharesSGSGDFeb 2000

Biography

Multi-Chem Limited, an investment holding company, distributes information technology (IT) hardware and software, and vendor maintenance related to Internet and network products in Singapore, the People’s Republic of China, Australia, and internationally. It operates in two segments, PCB Business and IT Business. The company also provides installation, technical, and maintenance services for Internet and network products. In addition, it offers printed circuit board (PCB) manufacturing services, such as mechanical and laser drilling primarily in precision drilling to PCB fabricators. Further, the company distributes a range of specialty chemicals for surface treatment, electroless copper plating, tin/tin lead stripping, and micro-etching; and supplies PCB-related materials and equipment, including plating systems, pulse rectifiers for copper plating, copper and tin anodes for electroplating, entry and back-up materials for drilling, non-woven brushes, dry film and liquid photoresist products, CCL and prepreg products, tacky rollers, tack cloth/wipes, and cleaning machines to remove foreign particles on PCBs. Additionally, it designs and manufactures panel and micro drills; and rents machines, as well as offers software consultancy and implementation services. Multi-Chem Limited was founded in 1985 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:03
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.