KLSE:FAVCO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

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.


Market Performance


7 Day Return

-0.9%

FAVCO

-1.2%

MY Machinery

0.7%

MY Market


1 Year Return

-19.1%

FAVCO

86.3%

MY Machinery

10.2%

MY Market

Return vs Industry: FAVCO underperformed the MY Machinery industry which returned 86.3% over the past year.

Return vs Market: FAVCO underperformed the MY Market which returned 10.2% over the past year.


Shareholder returns

FAVCOIndustryMarket
7 Day-0.9%-1.2%0.7%
30 Day1.9%-0.9%2.4%
90 Day-0.9%20.1%-0.9%
1 Year-13.7%-19.1%89.5%86.3%13.7%10.2%
3 Year0.9%-15.0%68.3%56.3%-1.8%-10.7%
5 Year5.3%-20.9%51.8%32.3%11.8%-6.6%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FAVCO (MYR2.16) is trading below our estimate of fair value (MYR5.69)

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 (9.4x) compared to the MY Machinery industry average (20.8x).

PE vs Market: FAVCO is good value based on its PE Ratio (9.4x) compared to the MY market (18.9x).


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 (1.1x).


Next Steps

Future Growth

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

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAVCO's forecast earnings growth (24.3% per year) is above the savings rate (3.7%).

Earnings vs Market: FAVCO's earnings (24.3% per year) are forecast to grow faster than the MY market (16.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FAVCO's revenue (10.8% per year) is forecast to grow faster than the MY market (7.3% per year).

High Growth Revenue: FAVCO's revenue (10.8% 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 (10.6%).


Next Steps

Past Performance

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

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAVCO has high quality earnings.

Growing Profit Margin: FAVCO's current net profit margins (8.7%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: FAVCO's earnings have declined by 5.8% 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 (-31.7%) over the past year, making it difficult to compare to the Machinery industry average (-19.8%).


Return on Equity

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


Next Steps

Financial Health

How is Favelle Favco Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: FAVCO's short term assets (MYR831.1M) exceed its short term liabilities (MYR510.2M).

Long Term Liabilities: FAVCO's short term assets (MYR831.1M) exceed its long term liabilities (MYR57.6M).


Debt to Equity History and Analysis

Debt Level: FAVCO's debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: FAVCO's debt to equity ratio has reduced from 15.3% to 6.9% over the past 5 years.

Debt Coverage: FAVCO's debt is well covered by operating cash flow (130.1%).

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


Balance Sheet


Next Steps

Dividend

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

6.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FAVCO's dividend (6.94%) is higher than the bottom 25% of dividend payers in the MY market (1.48%).

High Dividend: FAVCO's dividend (6.94%) is in the top 25% of dividend payers in the MY market (4.22%)


Stability and Growth of Payments

Stable Dividend: FAVCO's dividends per share have been stable 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 reasonable payout ratio (65.2%), FAVCO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FAVCO's dividends in 3 years are forecast to be well covered by earnings (41.1% payout ratio).


Next Steps

Management

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

17.2yrs

Average management tenure


CEO

Chung Mac (42 yo)

17.17yrs

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

NamePositionTenureCompensationOwnership
Chung Mac
CEO, MD & Director17.17yrsno data1.18%
MYR 5.7m
Ngan Mac
Executive Director7.58yrsno data5.01%
MYR 24.1m
Poh Lee
Executive Director18.17yrsno data0.77%
MYR 3.7m
Mazlan bin Abdul Hamid
Executive Director16.83yrsno data1.03%
MYR 5.0m
Tew Chong
Group Financial Controller & Company Secretary19.17yrsno datano data
San Ooi
Senior Operations General Manager17.17yrsno datano data
Michael Chan
Finance & Investor Relations Managerno datano datano data
Hwei Tia
Company Secretaryno datano datano data
Siau Woo
Joint Secretary0.83yrno datano data

17.2yrs

Average Tenure

56yo

Average Age

Experienced Management: FAVCO's management team is seasoned and experienced (17.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chung Mac
CEO, MD & Director17.17yrsno data1.18%
MYR 5.7m
Ngan Mac
Executive Director7.58yrsno data5.01%
MYR 24.1m
Poh Lee
Executive Director18.17yrsno data0.77%
MYR 3.7m
Mazlan bin Abdul Hamid
Executive Director16.83yrsno data1.03%
MYR 5.0m
Abdul bin Ramli
Chairman & Senior Independent Non-Executive Director6.83yrsno data0.13%
MYR 646.7k
Seri Ahmad Bin Haji Mohammad Nor
Independent & Non Executive Vice Chairman6.08yrsno data0.13%
MYR 645.0k
Sobri bin Abu
Independent Non-Executive Director6.83yrsno datano data
Khazali bin Haji Ahmad
Independent & Non Executive Director2.92yrsno datano data

6.8yrs

Average Tenure

66yo

Average Age

Experienced Board: FAVCO's board of directors are considered experienced (6.8 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 company bio, 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: RM481.460m
  • Shares outstanding: 223.93m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FAVCOKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRAug 2006

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 11:03
End of Day Share Price2021/03/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.