company background image
DRBH

DRB-HICOM Berhad KLSE:DRBHCOM Stock Report

Last Price

RM1.26

Market Cap

RM2.4b

7D

0%

1Y

-21.3%

Updated

07 Aug, 2022

Data

Company Financials +
DRBHCOM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends1/6

DRBHCOM Stock Overview

DRB-HICOM Berhad manufactures, assembles, distributes, imports, exports, rents, leases, retails, and sells passenger and commercial vehicles, motorcycles, defense vehicles, and related spare parts and accessories.

Rewards

Trading at 72.9% below our estimate of its fair value

Earnings are forecast to grow 47.25% per year

Risk Analysis

No risks detected for DRBHCOM from our risk checks.

DRB-HICOM Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for DRB-HICOM Berhad
Historical stock prices
Current Share PriceRM1.26
52 Week HighRM1.71
52 Week LowRM1.11
Beta1.11
1 Month Change5.00%
3 Month Change-5.97%
1 Year Change-21.25%
3 Year Change-52.45%
5 Year Change-19.23%
Change since IPO27.27%

Recent News & Updates

May 02
DRB-HICOM Berhad (KLSE:DRBHCOM) Will Pay A Dividend Of RM0.02

DRB-HICOM Berhad (KLSE:DRBHCOM) Will Pay A Dividend Of RM0.02

The board of DRB-HICOM Berhad ( KLSE:DRBHCOM ) has announced that it will pay a dividend on the 18th of July, with...

Shareholder Returns

DRBHCOMMY AutoMY Market
7D0%0.5%0.5%
1Y-21.3%-4.7%-3.1%

Return vs Industry: DRBHCOM underperformed the MY Auto industry which returned -4.7% over the past year.

Return vs Market: DRBHCOM underperformed the MY Market which returned -3.1% over the past year.

Price Volatility

Is DRBHCOM's price volatile compared to industry and market?
DRBHCOM volatility
DRBHCOM Average Weekly Movement5.0%
Auto Industry Average Movement5.4%
Market Average Movement5.6%
10% most volatile stocks in MY Market11.5%
10% least volatile stocks in MY Market2.8%

Stable Share Price: DRBHCOM is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DRBHCOM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199046,000Syed Faisal Bin Syed Ali Rethza Albarhttps://www.drb-hicom.com

DRB-HICOM Berhad manufactures, assembles, distributes, imports, exports, rents, leases, retails, and sells passenger and commercial vehicles, motorcycles, defense vehicles, and related spare parts and accessories. The company also maintains, markets, refurbishes or retrofits military and commercial vehicles, equipment, and spare parts; builds, constructs, develops, leases, rents, manages, and invests in properties; constructs, operates, and maintains infrastructure and broadcast systems; and manages billboards. In addition, it manufactures and supplies stamped metal parts, sub-assembly of automotive components, aerospace and non-aerospace components, aircraft avionics, mission systems equipment, unmanned aircraft systems, dies, molds, jigs, stamping products, front end modules and related components, and automotive electrical and electronics components.

DRB-HICOM Berhad Fundamentals Summary

How do DRB-HICOM Berhad's earnings and revenue compare to its market cap?
DRBHCOM fundamental statistics
Market CapRM2.44b
Earnings (TTM)-RM305.20m
Revenue (TTM)RM11.94b

0.2x

P/S Ratio

-8.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DRBHCOM income statement (TTM)
RevenueRM11.94b
Cost of RevenueRM10.41b
Gross ProfitRM1.52b
Other ExpensesRM1.83b
Earnings-RM305.20m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.16
Gross Margin12.78%
Net Profit Margin-2.56%
Debt/Equity Ratio95.1%

How did DRBHCOM perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

-13%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DRBHCOM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRBHCOM?

Other financial metrics that can be useful for relative valuation.

DRBHCOM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA16.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does DRBHCOM's PS Ratio compare to its peers?

DRBHCOM PS Ratio vs Peers
The above table shows the PS ratio for DRBHCOM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.5x
UMW UMW Holdings Berhad
0.3x2.8%RM3.4b
ORIENT Oriental Holdings Berhad
1.3xn/aRM4.2b
TCHONG Tan Chong Motor Holdings Berhad
0.3x3.2%RM704.3m
PECCA Pecca Group Berhad
4.2x5.0%RM601.4m
DRBHCOM DRB-HICOM Berhad
0.2x6.1%RM2.4b

Price-To-Sales vs Peers: DRBHCOM is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.5x).


Price to Earnings Ratio vs Industry

How does DRBHCOM's PE Ratio compare vs other companies in the Asian Auto Industry?

Price-To-Sales vs Industry: DRBHCOM is good value based on its Price-To-Sales Ratio (0.2x) compared to the Asian Auto industry average (0.9x)


Price to Sales Ratio vs Fair Ratio

What is DRBHCOM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DRBHCOM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: DRBHCOM is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).


Share Price vs Fair Value

What is the Fair Price of DRBHCOM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DRBHCOM (MYR1.26) is trading below our estimate of fair value (MYR4.65)

Significantly Below Fair Value: DRBHCOM is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is DRB-HICOM Berhad forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


47.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRBHCOM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.6%).

Earnings vs Market: DRBHCOM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DRBHCOM is expected to become profitable in the next 3 years.

Revenue vs Market: DRBHCOM's revenue (6.1% per year) is forecast to grow faster than the MY market (5.1% per year).

High Growth Revenue: DRBHCOM's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRBHCOM's Return on Equity is forecast to be low in 3 years time (2.9%).


Discover growth companies

Past Performance

How has DRB-HICOM Berhad performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DRBHCOM is currently unprofitable.

Growing Profit Margin: DRBHCOM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRBHCOM is unprofitable, but has reduced losses over the past 5 years at a rate of 15.3% per year.

Accelerating Growth: Unable to compare DRBHCOM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DRBHCOM is unprofitable, making it difficult to compare its past year earnings growth to the Auto industry (14.4%).


Return on Equity

High ROE: DRBHCOM has a negative Return on Equity (-4.5%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is DRB-HICOM Berhad's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: DRBHCOM's short term assets (MYR14.1B) do not cover its short term liabilities (MYR29.8B).

Long Term Liabilities: DRBHCOM's short term assets (MYR14.1B) exceed its long term liabilities (MYR8.6B).


Debt to Equity History and Analysis

Debt Level: DRBHCOM's net debt to equity ratio (54.5%) is considered high.

Reducing Debt: DRBHCOM's debt to equity ratio has increased from 61.2% to 95.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DRBHCOM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DRBHCOM is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 6.4% per year.


Discover healthy companies

Dividend

What is DRB-HICOM Berhad current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DRBHCOM's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (2%).

High Dividend: DRBHCOM's dividend (1.59%) is low compared to the top 25% of dividend payers in the MY market (4.84%).


Stability and Growth of Payments

Stable Dividend: DRBHCOM's dividend payments have been volatile in the past 10 years.

Growing Dividend: DRBHCOM's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: DRBHCOM is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (4.1%), DRBHCOM's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

5.6yrs

Average management tenure


CEO

Syed Faisal Bin Syed Ali Rethza Albar (56 yo)

6.58yrs

Tenure

Mr. Syed Faisal Albar Bin Syed Ali Rethza Albar has been the Managing Director of DRB-HICOM Berhad since March 1, 2016 and serves as its Chairman of Management Board and served as its Group Chief Executive...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Syed Faisal's total compensation is reasonable compared to companies of similar size in the MY market.

Compensation vs Earnings: Syed Faisal's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: DRBHCOM's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: DRBHCOM's board of directors are considered experienced (6 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

DRB-HICOM Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: DRB-HICOM Berhad
  • Ticker: DRBHCOM
  • Exchange: KLSE
  • Founded: 1990
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Implied Market Cap: RM2.436b
  • Shares outstanding: 1.93b
  • Website: https://www.drb-hicom.com

Number of Employees


Location

  • DRB-HICOM Berhad
  • Wisma DRB-HICOM
  • Level 5
  • Shah Alam
  • Selangor
  • 40150
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.