Coastal Contracts Bhd (KLSE:COASTAL) - Share price, News & Analysis

COASTAL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

COASTAL Stock Overview

Coastal Contracts Bhd, an investment holding company, provides integrated marine oil and gas services and solutions in India, Indonesia, Malaysia, Mexico, Saudi Arabia, and internationally.

Rewards

Price-To-Earnings ratio (8.8x) is below the MY market (14x)

Revenue is forecast to grow 16.37% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 6.8% per year for the next 3 years

Coastal Contracts Bhd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Coastal Contracts Bhd
Historical stock prices
Current Share Price	RM1.63
52 Week High	RM2.09
52 Week Low	RM0.70
Beta	1.04
1 Month Change	-13.76%
3 Month Change	-9.44%
1 Year Change	103.75%
3 Year Change	76.22%
5 Year Change	23.49%
Change since IPO	11.45%

Recent News & Updates

May 30

What Is Coastal Contracts Bhd's (KLSE:COASTAL) Share Price Doing?

Coastal Contracts Bhd ( KLSE:COASTAL ), might not be a large cap stock, but it saw a significant share price rise of...

Shareholder Returns

	COASTAL	MY Machinery	MY Market
7D	-5.8%	1.7%	-1.2%
1Y	103.8%	-15.7%	-8.7%

Return vs Industry: COASTAL exceeded the MY Machinery industry which returned -15.7% over the past year.

Return vs Market: COASTAL exceeded the MY Market which returned -8.7% over the past year.

Price Volatility

Is COASTAL's price volatile compared to industry and market?
COASTAL volatility
COASTAL Average Weekly Movement	5.9%
Machinery Industry Average Movement	6.5%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.9%

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

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

About the Company

Founded	Employees	CEO	Website
1976	194	n/a	https://www.coastalcontracts.com

Coastal Contracts Bhd, an investment holding company, provides integrated marine oil and gas services and solutions in India, Indonesia, Malaysia, Mexico, Saudi Arabia, and internationally. The company operates in two segments, Vessels Manufacturing and Repairing Services, and Vessels Chartering and Equipment Hire. It engages in the fabrication and sale of offshore support and marine transportation vessels, including subsea support and maintenance, platform and utility support, and anchor handling tug supply vessels; accommodation work, oil, and dumb barges; harbor tugs; landing crafts; and tugboats.

Coastal Contracts Bhd Fundamentals Summary

How do Coastal Contracts Bhd's earnings and revenue compare to its market cap?
COASTAL fundamental statistics
Market Cap	RM857.33m
Earnings (TTM)	RM97.03m
Revenue (TTM)	RM290.73m

8.8x

P/E Ratio

2.9x

P/S Ratio

Is COASTAL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
COASTAL income statement (TTM)
Revenue	RM290.73m
Cost of Revenue	RM163.48m
Gross Profit	RM127.25m
Other Expenses	RM30.22m
Earnings	RM97.03m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.18
Gross Margin	43.77%
Net Profit Margin	33.38%
Debt/Equity Ratio	20.2%

How did COASTAL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 COASTAL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for COASTAL. This is calculated by dividing COASTAL's market cap by their current preferred multiple.
What is COASTAL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM857.33m

COASTAL 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	2.5x
Enterprise Value/EBITDA	3.7x
PEG Ratio	-1.3x

Price to Earnings Ratio vs Peers

How does COASTAL's PE Ratio compare to its peers?

COASTAL PE Ratio vs Peers

The above table shows the PE ratio for COASTAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.7x

Forward PE

Price-To-Earnings vs Peers: COASTAL is good value based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

How does COASTAL's PE Ratio compare vs other companies in the Malaysian Machinery Industry?

Price-To-Earnings vs Industry: COASTAL is good value based on its Price-To-Earnings Ratio (8.8x) compared to the MY Machinery industry average (15.8x)

Price to Earnings Ratio vs Fair Ratio

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

COASTAL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.8x
Fair PE Ratio	11.7x

Price-To-Earnings vs Fair Ratio: COASTAL is good value based on its Price-To-Earnings Ratio (8.8x) compared to the estimated Fair Price-To-Earnings Ratio (11.7x).

Share Price vs Fair Value

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

Below Fair Value: COASTAL (MYR1.63) is trading above our estimate of fair value (MYR0.53)

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

Price to Earnings Growth Ratio

PEG Ratio: COASTAL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Coastal Contracts Bhd forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

-6.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: COASTAL's earnings are forecast to decline over the next 3 years (-6.8% per year).

Earnings vs Market: COASTAL's earnings are forecast to decline over the next 3 years (-6.8% per year).

High Growth Earnings: COASTAL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: COASTAL's revenue (16.4% per year) is forecast to grow faster than the MY market (5.2% per year).

High Growth Revenue: COASTAL's revenue (16.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: COASTAL's Return on Equity is forecast to be high in 3 years time (30.2%)

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Past Performance

How has Coastal Contracts Bhd performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: COASTAL has high quality earnings.

Growing Profit Margin: COASTAL became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: COASTAL has become profitable over the past 5 years, growing earnings by 19.3% per year.

Accelerating Growth: COASTAL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: COASTAL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (29.3%).

Return on Equity

High ROE: COASTAL's Return on Equity (8.4%) is considered low.

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Financial Health

How is Coastal Contracts Bhd's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: COASTAL's short term assets (MYR871.8M) exceed its short term liabilities (MYR378.8M).

Long Term Liabilities: COASTAL's short term assets (MYR871.8M) exceed its long term liabilities (MYR138.9M).

Debt to Equity History and Analysis

Debt Level: COASTAL has more cash than its total debt.

Reducing Debt: COASTAL's debt to equity ratio has reduced from 30.4% to 20.2% over the past 5 years.

Debt Coverage: COASTAL's debt is not well covered by operating cash flow (12.1%).

Interest Coverage: COASTAL earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Coastal Contracts Bhd 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

2.09%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate COASTAL'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 COASTAL's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

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

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Management

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

21.8yrs

Average management tenure

CEO

Coastal Contracts Bhd has no CEO, or we have no data on them.

Leadership Team

Experienced Management: COASTAL's management team is seasoned and experienced (21.8 years average tenure).

Board Members

Experienced Board: COASTAL's board of directors are seasoned and experienced ( 17.3 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	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30