Ahmad Zaki Resources Berhad (KLSE:AZRB) - Share price, News & Analysis

AZRB fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

AZRB Stock Overview

Ahmad Zaki Resources Berhad, an investment holding company, operates as a contractor of civil and structural works.

Rewards

Trading at 97.2% below our estimate of its fair value

Risk Analysis

Earnings have declined by 59% per year over past 5 years

Does not have a meaningful market cap (MYR101M)

Ahmad Zaki Resources Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ahmad Zaki Resources Berhad
Historical stock prices
Current Share Price	RM0.17
52 Week High	RM0.28
52 Week Low	RM0.17
Beta	1.55
1 Month Change	-12.82%
3 Month Change	-20.93%
1 Year Change	-32.00%
3 Year Change	-59.52%
5 Year Change	-82.61%
Change since IPO	-75.01%

Recent News & Updates

May 13

Is Ahmad Zaki Resources Berhad (KLSE:AZRB) Using Debt In A Risky Way?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

	AZRB	MY Construction	MY Market
7D	-2.9%	-1.2%	-2.7%
1Y	-32.0%	-15.6%	-9.2%

Return vs Industry: AZRB underperformed the MY Construction industry which returned -15.6% over the past year.

Return vs Market: AZRB underperformed the MY Market which returned -9.2% over the past year.

Price Volatility

Is AZRB's price volatile compared to industry and market?
AZRB volatility
AZRB Average Weekly Movement	5.6%
Construction Industry Average Movement	5.3%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.3%
10% least volatile stocks in MY Market	2.9%

Stable Share Price: AZRB is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AZRB's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	1,046	Wan bin Haji Wan Muda	https://www.azrb.com

Ahmad Zaki Resources Berhad, an investment holding company, operates as a contractor of civil and structural works. The company operates in five segments: Engineering and Construction, Concession, Oil and Gas, Plantation, and Property. It undertakes civil and structured construction works, including commercial buildings, infrastructure works, educational institutions, public buildings and amenities, and sport facilities.

Ahmad Zaki Resources Berhad Fundamentals Summary

How do Ahmad Zaki Resources Berhad's earnings and revenue compare to its market cap?
AZRB fundamental statistics
Market Cap	RM101.39m
Earnings (TTM)	-RM42.00m
Revenue (TTM)	RM831.87m

0.1x

P/S Ratio

-2.4x

P/E Ratio

Is AZRB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AZRB income statement (TTM)
Revenue	RM831.87m
Cost of Revenue	RM787.87m
Gross Profit	RM44.00m
Other Expenses	RM86.00m
Earnings	-RM42.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.07
Gross Margin	5.29%
Net Profit Margin	-5.05%
Debt/Equity Ratio	1,103.6%

How did AZRB perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AZRB. This is calculated by dividing AZRB's market cap by their current preferred multiple.
What is AZRB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM101.39m

AZRB 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/Revenue	3.3x
Enterprise Value/EBITDA	-345.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

AZRB PS Ratio vs Peers

The above table shows the PS ratio for AZRB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.6x

Forward PS

Price-To-Sales vs Peers: AZRB is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.6x).

Price to Earnings Ratio vs Industry

How does AZRB's PE Ratio compare vs other companies in the Malaysian Construction Industry?

Price-To-Sales vs Industry: AZRB is good value based on its Price-To-Sales Ratio (0.1x) compared to the MY Construction industry average (0.9x)

Price to Sales Ratio vs Fair Ratio

What is AZRB'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.

AZRB PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate AZRB's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: AZRB (MYR0.17) is trading below our estimate of fair value (MYR6.09)

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

Price to Earnings Growth Ratio

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

Discover undervalued companies

Future Growth

How is Ahmad Zaki Resources Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.7%

Forecasted Capital Goods 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 Ahmad Zaki Resources Berhad 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.

Discover growth companies

Examine whether Ahmad Zaki Resources Berhad is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Ahmad Zaki Resources 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

-59.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AZRB is currently unprofitable.

Growing Profit Margin: AZRB is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: AZRB is unprofitable, and losses have increased over the past 5 years at a rate of 59% per year.

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

Earnings vs Industry: AZRB is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-3.9%).

Return on Equity

High ROE: AZRB has a negative Return on Equity (-16.64%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Ahmad Zaki Resources Berhad's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AZRB's short term assets (MYR887.6M) do not cover its short term liabilities (MYR1.3B).

Long Term Liabilities: AZRB's short term assets (MYR887.6M) do not cover its long term liabilities (MYR3.0B).

Debt to Equity History and Analysis

Debt Level: AZRB's net debt to equity ratio (987.7%) is considered high.

Reducing Debt: AZRB's debt to equity ratio has increased from 604.6% to 1103.6% 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 AZRB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AZRB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24.1% per year.

Discover healthy companies

Dividend

What is Ahmad Zaki Resources Berhad current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AZRB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AZRB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AZRB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AZRB's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: AZRB is not paying a notable dividend for the MY market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AZRB has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Wan bin Haji Wan Muda (61 yo)

19.42yrs

Tenure

RM51,023

Compensation

Mr. Wan Zakariah bin Haji Wan Muda, SSAP, DSAP, DSSA, has been Group Managing Director of Ahmad Zaki Resources Berhad since January 1, 2003. Mr. bin Haji Wan Muda served as Quantity Surveyor of AZSB from j...

CEO Compensation Analysis

Compensation vs Market: Wan's total compensation ($USD11.58K) is below average for companies of similar size in the MY market ($USD113.67K).

Compensation vs Earnings: Wan's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: AZRB's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: AZRB's board of directors are seasoned and experienced ( 11.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30