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. More Details
Very undervalued with flawless balance sheet and pays a dividend.
Share Price & News
How has Favelle Favco Berhad's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
7 Day Return
1 Year Return
Return vs Industry: FAVCO underperformed the MY Machinery industry which returned 97.5% over the past year.
Return vs Market: FAVCO underperformed the MY Market which returned 19.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Favelle Favco Berhad's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StWhat Type Of Shareholders Own The Most Number of Favelle Favco Berhad (KLSE:FAVCO) Shares?
3 weeks ago | Simply Wall StBe Wary Of Favelle Favco Berhad (KLSE:FAVCO) And Its Returns On Capital
1 month ago | Simply Wall StNeed To Know: Analysts Just Made A Substantial Cut To Their Favelle Favco Berhad (KLSE:FAVCO) Estimates
Is Favelle Favco Berhad undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FAVCO (MYR2.19) is trading below our estimate of fair value (MYR2.84)
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 (11x) compared to the MY Machinery industry average (20.9x).
PE vs Market: FAVCO is good value based on its PE Ratio (11x) compared to the MY market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: FAVCO is good value based on its PEG Ratio (0.4x)
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 (1.3x).
How is Favelle Favco Berhad forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FAVCO's forecast earnings growth (26.8% per year) is above the savings rate (3.6%).
Earnings vs Market: FAVCO's earnings (26.8% per year) are forecast to grow faster than the MY market (14.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FAVCO's revenue (10.3% per year) is forecast to grow faster than the MY market (7.1% per year).
High Growth Revenue: FAVCO's revenue (10.3% 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 (9%).
How has Favelle Favco Berhad performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FAVCO has a large one-off gain of MYR16.3M impacting its December 31 2020 financial results.
Growing Profit Margin: FAVCO's current net profit margins (8.1%) are lower than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: FAVCO's earnings have declined by 6.2% 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 (-46%) over the past year, making it difficult to compare to the Machinery industry average (-9.7%).
Return on Equity
High ROE: FAVCO's Return on Equity (6.5%) is considered low.
How is Favelle Favco Berhad's financial position?
Financial Position Analysis
Short Term Liabilities: FAVCO's short term assets (MYR830.7M) exceed its short term liabilities (MYR512.3M).
Long Term Liabilities: FAVCO's short term assets (MYR830.7M) exceed its long term liabilities (MYR64.1M).
Debt to Equity History and Analysis
Debt Level: FAVCO's debt to equity ratio (8%) is considered satisfactory.
Reducing Debt: FAVCO's debt to equity ratio has reduced from 11.6% to 8% over the past 5 years.
Debt Coverage: FAVCO's debt is well covered by operating cash flow (146.1%).
Interest Coverage: FAVCO earns more interest than it pays, so coverage of interest payments is not a concern.
What is Favelle Favco Berhad current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FAVCO's dividend (3.65%) is higher than the bottom 25% of dividend payers in the MY market (1.4%).
High Dividend: FAVCO's dividend (3.65%) is low compared to the top 25% of dividend payers in the MY market (3.96%).
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 (40.1%), 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 well covered by earnings (47.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chung Mac (42 yo)
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....
Experienced Management: FAVCO's management team is seasoned and experienced (17.3 years average tenure).
Experienced Board: FAVCO's board of directors are considered experienced (7 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Favelle Favco Berhad's company bio, employee growth, exchange listings and data sources
- Name: Favelle Favco Berhad
- Ticker: FAVCO
- Exchange: KLSE
- Founded: 1923
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: RM490.417m
- Shares outstanding: 223.93m
- Website: https://www.favellefavco.com
Number of Employees
- Favelle Favco Berhad
- Lot 586, 2nd Mile
- Jalan Batu Tiga Lama
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 internation...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/12 12:00|
|End of Day Share Price||2021/05/12 00:00|
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.