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PEST

Pestech International Berhad KLSE:PESTECH Stock Report

Last Price

RM0.45

Market Cap

RM413.5m

7D

9.9%

1Y

-36.4%

Updated

27 Jun, 2022

Data

Company Financials +
PESTECH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends0/6

PESTECH Stock Overview

Pestech International Berhad, an investment holding company, operates as an integrated electric power technology company in Malaysia and internationally.

Pestech International Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pestech International Berhad
Historical stock prices
Current Share PriceRM0.45
52 Week HighRM1.02
52 Week LowRM0.40
Beta0.92
1 Month Change-11.88%
3 Month Change-24.58%
1 Year Change-36.43%
3 Year Change-52.05%
5 Year Change-65.66%
Change since IPO307.51%

Recent News & Updates

Jun 22
Is Pestech International Berhad (KLSE:PESTECH) Potentially Undervalued?

Is Pestech International Berhad (KLSE:PESTECH) Potentially Undervalued?

While Pestech International Berhad ( KLSE:PESTECH ) might not be the most widely known stock at the moment, it saw...

Shareholder Returns

PESTECHMY ConstructionMY Market
7D9.9%-1.8%-1.2%
1Y-36.4%-14.8%-8.7%

Return vs Industry: PESTECH underperformed the MY Construction industry which returned -14.8% over the past year.

Return vs Market: PESTECH underperformed the MY Market which returned -8.7% over the past year.

Price Volatility

Is PESTECH's price volatile compared to industry and market?
PESTECH volatility
PESTECH Average Weekly Movement5.6%
Construction Industry Average Movement5.3%
Market Average Movement5.5%
10% most volatile stocks in MY Market11.5%
10% least volatile stocks in MY Market2.9%

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

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

About the Company

FoundedEmployeesCEOWebsite
1991615Paul Limhttps://www.pestech-international.com

Pestech International Berhad, an investment holding company, operates as an integrated electric power technology company in Malaysia and internationally. The company’s HV and EHV Electrical System segment is involved in the design, engineering, manufacturing, installation, testing, and commissioning of high voltage and extra high voltage substations and equipment required in the building of an integrated electricity system. Its Transmission Line and Power Cables segment engages in the design, engineering, installation, testing, and commissioning of power transmission lines and underground cables.

Pestech International Berhad Fundamentals Summary

How do Pestech International Berhad's earnings and revenue compare to its market cap?
PESTECH fundamental statistics
Market CapRM413.51m
Earnings (TTM)RM56.24m
Revenue (TTM)RM814.91m

7.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PESTECH income statement (TTM)
RevenueRM814.91m
Cost of RevenueRM717.76m
Gross ProfitRM97.15m
Other ExpensesRM40.91m
EarningsRM56.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.057
Gross Margin11.92%
Net Profit Margin6.90%
Debt/Equity Ratio139.8%

How did PESTECH perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

7%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PESTECH 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 PESTECH?

Other financial metrics that can be useful for relative valuation.

PESTECH 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/Revenue2x
Enterprise Value/EBITDA13.5x
PEG Ratio-2.6x

Price to Earnings Ratio vs Peers

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

PESTECH PE Ratio vs Peers
The above table shows the PE ratio for PESTECH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.5x
PTARAS Pintaras Jaya Berhad
9.6x20.1%RM373.2m
BREM Brem Holding Berhad
19.2xn/aRM391.5m
KKB KKB Engineering Berhad
21.4xn/aRM404.2m
PEKAT Pekat Group Berhad
23.2xn/aRM287.0m
PESTECH Pestech International Berhad
7.8x-3.0%RM413.5m

Price-To-Earnings vs Peers: PESTECH is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (18.5x).


Price to Earnings Ratio vs Industry

How does PESTECH's PE Ratio compare vs other companies in the MY Construction Industry?

Price-To-Earnings vs Industry: PESTECH is good value based on its Price-To-Earnings Ratio (7.8x) compared to the MY Construction industry average (18.6x)


Price to Earnings Ratio vs Fair Ratio

What is PESTECH'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.

PESTECH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ratio9.8x

Price-To-Earnings vs Fair Ratio: PESTECH is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.8x).


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate PESTECH's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PESTECH's fair value for valuation analysis.


Price to Earnings Growth Ratio

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


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Future Growth

How is Pestech International Berhad forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PESTECH's revenue is expected to decline over the next 3 years (-6.5% per year).

High Growth Revenue: PESTECH's revenue is forecast to decline over the next 3 years (-6.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PESTECH's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Pestech International Berhad performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PESTECH has high quality earnings.

Growing Profit Margin: PESTECH's current net profit margins (6.9%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: PESTECH's earnings have declined by 9.1% per year over the past 5 years.

Accelerating Growth: PESTECH's earnings growth over the past year (13.3%) exceeds its 5-year average (-9.1% per year).

Earnings vs Industry: PESTECH earnings growth over the past year (13.3%) exceeded the Construction industry -5.1%.


Return on Equity

High ROE: PESTECH's Return on Equity (10%) is considered low.


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Financial Health

How is Pestech International Berhad's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PESTECH's short term assets (MYR1.6B) exceed its short term liabilities (MYR1.2B).

Long Term Liabilities: PESTECH's short term assets (MYR1.6B) exceed its long term liabilities (MYR781.3M).


Debt to Equity History and Analysis

Debt Level: PESTECH's net debt to equity ratio (118.8%) is considered high.

Reducing Debt: PESTECH's debt to equity ratio has increased from 115.4% to 139.8% over the past 5 years.

Debt Coverage: PESTECH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PESTECH's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet


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Dividend

What is Pestech International Berhad 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


0.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PESTECH's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (2.15%).

High Dividend: PESTECH's dividend (0.9%) is low compared to the top 25% of dividend payers in the MY market (4.94%).


Stability and Growth of Payments

Stable Dividend: PESTECH is not paying a notable dividend for the MY market, therefore no need to check if payments are stable.

Growing Dividend: PESTECH is not paying a notable dividend for the MY market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: PESTECH is paying a dividend but the company has no free cash flows.


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Management

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

12.4yrs

Average management tenure


CEO

Paul Lim (51 yo)

14.42yrs

Tenure

RM1,610,337

Compensation

Mr. Pay Chuan Lim, also known as Paul, has been the Group Chief Executive Officer of Pestech International Berhad since 2008 and serves as its Managing Director since October 8, 2020. Mr. Lim is a Non-Exec...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD366.07K) is above average for companies of similar size in the MY market ($USD113.68K).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PESTECH's management team is seasoned and experienced (12.4 years average tenure).


Board Members

Experienced Board: PESTECH's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Pestech International Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Pestech International Berhad
  • Ticker: PESTECH
  • Exchange: KLSE
  • Founded: 1991
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: RM413.513m
  • Shares outstanding: 984.56m
  • Website: https://www.pestech-international.com

Number of Employees


Location

  • Pestech International Berhad
  • No. 26, Jalan Utarid U5/14
  • Seksyen U5
  • Shah Alam
  • Selangor
  • 40150
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.