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FAVC

Favelle Favco BerhadKLSE:FAVCO Stock Report

Market Cap

RM501.5m

7D

0.4%

1Y

-5.1%

Updated

24 Sep, 2021

Data

Company Financials +
FAVCO fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends4/6

FAVCO Overview

Favelle Favco Berhad, an investment holding company, engages in the design, manufacture, supply, service, trading, and leasing of cranes under the Favelle Favco and Kroll brands in Malaysia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Favelle Favco Berhad
Historical stock prices
Current Share PriceRM2.25
52 Week HighRM2.07
52 Week LowRM2.39
Beta0.54
1 Month Change2.27%
3 Month Change3.21%
1 Year Change-5.06%
3 Year Change-7.03%
5 Year Change-3.43%
Change since IPO226.09%

Recent News & Updates

Jun 06
Here's Why Favelle Favco Berhad (KLSE:FAVCO) Can Manage Its Debt Responsibly

Here's Why Favelle Favco Berhad (KLSE:FAVCO) Can Manage Its Debt Responsibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Apr 15
Be Wary Of Favelle Favco Berhad (KLSE:FAVCO) And Its Returns On Capital

Be Wary Of Favelle Favco Berhad (KLSE:FAVCO) And Its Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Mar 31
Need To Know: Analysts Just Made A Substantial Cut To Their Favelle Favco Berhad (KLSE:FAVCO) Estimates

Need To Know: Analysts Just Made A Substantial Cut To Their Favelle Favco Berhad (KLSE:FAVCO) Estimates

One thing we could say about the analysts on Favelle Favco Berhad ( KLSE:FAVCO ) - they aren't optimistic, having just...

Shareholder Returns

FAVCOMY MachineryMY Market
7D0.4%6.4%-0.7%
1Y-5.1%46.6%5.8%

Return vs Industry: FAVCO underperformed the MY Machinery industry which returned 45% over the past year.

Return vs Market: FAVCO underperformed the MY Market which returned 6.2% over the past year.

Price Volatility

Is FAVCO's price volatile compared to industry and market?
FAVCO volatility
FAVCO Beta0.54
Industry Beta1.06
Market Beta1

Stable Share Price: FAVCO is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: FAVCO's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1923523Chung Machttps://www.favellefavco.com

Favelle Favco Berhad, an investment holding company, engages in the design, manufacture, supply, service, trading, and leasing of cranes under the Favelle Favco and Kroll brands in Malaysia and internationally. It operates through Cranes and Intelligent Automation Group segments. The company offers offshore oil and gas pedestal, tower, shipyard, and other heavy lifting equipment cranes.

Favelle Favco Berhad Fundamentals Summary

How do Favelle Favco Berhad's earnings and revenue compare to its market cap?
FAVCO fundamental statistics
Market CapRM501.47m
Earnings (TTM)RM50.40m
Revenue (TTM)RM587.61m

10.0x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FAVCO income statement (TTM)
RevenueRM587.61m
Cost of RevenueRM443.71m
Gross ProfitRM143.91m
ExpensesRM93.51m
EarningsRM50.40m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.23
Gross Margin24.49%
Net Profit Margin8.58%
Debt/Equity Ratio14.2%

How did FAVCO perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

36%

Payout Ratio

Valuation

Is Favelle Favco Berhad undervalued compared to its fair value and its price relative to the market?

37.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FAVCO (MYR2.25) is trading below our estimate of fair value (MYR3.62)

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


Price To Earnings Ratio

PE vs Industry: FAVCO is good value based on its PE Ratio (10x) compared to the MY Machinery industry average (20.1x).

PE vs Market: FAVCO is good value based on its PE Ratio (10x) compared to the MY market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: FAVCO is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: FAVCO is good value based on its PB Ratio (0.7x) compared to the MY Machinery industry average (1.5x).


Future Growth

How is Favelle Favco Berhad forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAVCO's forecast earnings growth (16% per year) is above the savings rate (3.6%).

Earnings vs Market: FAVCO's earnings (16% per year) are forecast to grow faster than the MY market (10.8% per year).

High Growth Earnings: FAVCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: FAVCO's revenue (6.7% per year) is forecast to grow faster than the MY market (6.6% per year).

High Growth Revenue: FAVCO's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FAVCO's Return on Equity is forecast to be low in 3 years time (8.9%).


Past Performance

How has Favelle Favco Berhad performed over the past 5 years?

-6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAVCO has high quality earnings.

Growing Profit Margin: FAVCO's current net profit margins (8.6%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: FAVCO's earnings have declined by 6.6% per year over the past 5 years.

Accelerating Growth: FAVCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FAVCO had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Machinery industry average (20.2%).


Return on Equity

High ROE: FAVCO's Return on Equity (7.1%) is considered low.


Financial Health

How is Favelle Favco Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: FAVCO's short term assets (MYR894.3M) exceed its short term liabilities (MYR564.3M).

Long Term Liabilities: FAVCO's short term assets (MYR894.3M) exceed its long term liabilities (MYR58.4M).


Debt to Equity History and Analysis

Debt Level: FAVCO's debt to equity ratio (14.2%) is considered satisfactory.

Reducing Debt: FAVCO's debt to equity ratio has increased from 5.2% to 14.2% over the past 5 years.

Debt Coverage: FAVCO's debt is well covered by operating cash flow (86.5%).

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


Balance Sheet


Dividend

What is Favelle Favco Berhad current dividend yield, its reliability and sustainability?

3.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FAVCO's dividend (3.56%) is higher than the bottom 25% of dividend payers in the MY market (1.55%).

High Dividend: FAVCO's dividend (3.56%) is low compared to the top 25% of dividend payers in the MY market (4.17%).


Stability and Growth of Payments

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

Growing Dividend: FAVCO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), FAVCO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FAVCO's dividends in 3 years are forecast to be covered by earnings (54.8% payout ratio).


Next Steps

Management

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

17.7yrs

Average management tenure


CEO

Chung Mac (43 yo)

17.67yrs

Tenure

Mr. Chung Hui Mac has been the Chief Executive Officer of Favelle Favco Berhad (“FFB”), a subsidiary of Muhibbah Engineering (M) Bhd. since May 5, 2004 and its Managing Director since August 26, 2013. Mr....


Leadership Team

Experienced Management: FAVCO's management team is seasoned and experienced (17.7 years average tenure).


Board Members

Experienced Board: FAVCO's board of directors are considered experienced (7.3 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.


Top Shareholders

Company Information

Favelle Favco Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Favelle Favco Berhad
  • Ticker: FAVCO
  • Exchange: KLSE
  • Founded: 1923
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: RM501.468m
  • Shares outstanding: 222.87m
  • Website: https://www.favellefavco.com

Number of Employees


Location

  • Favelle Favco Berhad
  • Lot 586, 2nd Mile
  • Jalan Batu Tiga Lama
  • Klang
  • Selangor
  • 41300
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 15:37
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.