Coastal Contracts Bhd

KLSE:COASTAL Stock Report

Market Cap: RM 824.0m

Coastal Contracts Bhd Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (MYR1.54) is trading below our estimate of fair value (MYR5.61)

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

Key Valuation Metric

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

Key metric: As COASTAL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for COASTAL. This is calculated by dividing COASTAL's market cap by their current earnings.
What is COASTAL's PE Ratio?
PE Ratio3.7x
EarningsRM 222.27m
Market CapRM 824.03m

Price to Earnings Ratio vs Peers

How does COASTAL's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.7x
FAVCO Favelle Favco Berhad
15.9xn/aRM 430.5m
CHGP Chin Hin Group Property Berhad
39.8xn/aRM 1.4b
TAS TAS Offshore Berhad
7.3x16.4%RM 114.5m
SEALINK Sealink International Berhad
7.9xn/aRM 162.5m
COASTAL Coastal Contracts Bhd
3.7x-18.4%RM 824.0m

Price-To-Earnings vs Peers: COASTAL is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (17.7x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MBL Muar Ban Lee Group Berhad
2.8xn/aUS$21.41m
JASKITA Jasa Kita Berhad
1.8xn/aUS$15.60m
No more companies available in this PE range
COASTAL 3.7xIndustry Avg. 21.0xNo. of Companies4PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: COASTAL is good value based on its Price-To-Earnings Ratio (3.7x) compared to the MY Machinery industry average (21x).

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 Ratio3.7x
Fair PE Ratio7.7x

Price-To-Earnings vs Fair Ratio: COASTAL is good value based on its Price-To-Earnings Ratio (3.7x) compared to the estimated Fair Price-To-Earnings Ratio (7.7x).

Analyst Price Targets

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

The above table shows the analyst COASTAL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 1.54
RM 1.87
+21.4%
1.1%RM 1.89RM 1.85n/a2
Sep ’25RM 1.75
RM 1.89
+7.7%
0.3%RM 1.89RM 1.88n/a2
Aug ’25RM 1.82
RM 1.82
0.0%
9.9%RM 2.00RM 1.64n/a2
Jul ’25RM 1.76
RM 1.82
+3.4%
9.9%RM 2.00RM 1.64n/a2
Jun ’25RM 1.60
RM 1.69
+5.6%
3.0%RM 1.74RM 1.64n/a2
May ’25RM 1.50
RM 1.44
-4.3%
12.9%RM 1.62RM 1.25n/a2
Apr ’25RM 1.51
RM 1.44
-5.0%
12.9%RM 1.62RM 1.25n/a2
Mar ’25RM 1.49
RM 1.55
+4.0%
19.4%RM 1.85RM 1.25n/a2
Feb ’25RM 1.67
RM 1.58
-5.7%
20.6%RM 1.90RM 1.25n/a2
Jan ’25RM 1.65
RM 1.58
-4.5%
20.6%RM 1.90RM 1.25n/a2
Dec ’24RM 1.72
RM 1.67
-3.2%
24.9%RM 2.08RM 1.25n/a2
Nov ’24RM 1.92
RM 2.31
+20.3%
6.9%RM 2.47RM 2.15RM 1.572
Oct ’24RM 1.96
RM 2.31
+17.9%
6.9%RM 2.47RM 2.15RM 1.682
Sep ’24RM 2.10
RM 2.26
+7.6%
4.9%RM 2.37RM 2.15RM 1.752
Aug ’24RM 2.20
RM 2.83
+28.6%
9.5%RM 3.10RM 2.56RM 1.822
Jul ’24RM 2.16
RM 2.83
+31.0%
9.5%RM 3.10RM 2.56RM 1.762
Jun ’24RM 2.25
RM 2.83
+25.8%
9.5%RM 3.10RM 2.56RM 1.602
May ’24RM 2.29
RM 2.83
+23.6%
9.5%RM 3.10RM 2.56RM 1.502
Apr ’24RM 2.27
RM 2.83
+24.7%
9.5%RM 3.10RM 2.56RM 1.512
Mar ’24RM 2.34
RM 2.83
+20.9%
9.5%RM 3.10RM 2.56RM 1.492
Feb ’24RM 2.50
RM 2.91
+16.4%
5.2%RM 3.06RM 2.76RM 1.672
Jan ’24RM 2.37
RM 2.87
+21.1%
6.6%RM 3.06RM 2.68RM 1.652
Dec ’23RM 2.26
RM 2.64
+16.8%
1.5%RM 2.68RM 2.60RM 1.722
Nov ’23RM 2.04
RM 2.50
+22.5%
4.0%RM 2.60RM 2.40RM 1.922

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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