Pintaras Jaya Berhad (KLSE:PTARAS) - Share price, News & Analysis

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

PTARAS (MYR2.22) is trading above our estimate of [[fair value]] (MYR1.81)

PTARAS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	1/6
Financial Health	5/6
Dividends	4/6

PTARAS Stock Overview

Pintaras Jaya Berhad, an investment holding company, engages in undertaking piling contracts, and civil engineering and building construction works in Malaysia.

Rewards

Price-To-Earnings ratio (9.4x) is below the MY market (14.4x)

Earnings are forecast to grow 9.69% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (9.1%) are lower than last year (17.3%)

Does not have a meaningful market cap (MYR368M)

Pintaras Jaya Berhad Competitors

Pestech International Berhad

KLSE:PESTECH

RM443.0m

KKB Engineering Berhad

KLSE:KKB

RM392.7m

Pekat Group Berhad

KLSE:PEKAT

RM290.2m

Nestcon Berhad

KLSE:NESTCON

RM283.3m

Price History & Performance

Summary of all time highs, changes and price drops for Pintaras Jaya Berhad
Historical stock prices
Current Share Price	RM2.22
52 Week High	RM3.08
52 Week Low	RM2.12
Beta	0.35
1 Month Change	-4.72%
3 Month Change	-15.59%
1 Year Change	-9.39%
3 Year Change	-17.78%
5 Year Change	-44.22%
Change since IPO	165.57%

Recent News & Updates

May 30

Pintaras Jaya Berhad (KLSE:PTARAS) Will Pay A Dividend Of RM0.04

Pintaras Jaya Berhad ( KLSE:PTARAS ) will pay a dividend of RM0.04 on the 6th of July. This makes the dividend yield...

Shareholder Returns

	PTARAS	MY Construction	MY Market
7D	-3.1%	0.8%	0.2%
1Y	-9.4%	-4.7%	-4.1%

Return vs Industry: PTARAS underperformed the MY Construction industry which returned -4.7% over the past year.

Return vs Market: PTARAS underperformed the MY Market which returned -3.8% over the past year.

Price Volatility

Is PTARAS's price volatile compared to industry and market?
PTARAS volatility
PTARAS Average Weekly Movement	4.8%
Construction Industry Average Movement	5.3%
Market Average Movement	5.6%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.7%

Stable Share Price: PTARAS is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PTARAS's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1989	n/a	Hong Chiu	https://www.pintaras.com.my

Pintaras Jaya Berhad, an investment holding company, engages in undertaking piling contracts, and civil engineering and building construction works in Malaysia. It operates through Piling, Civil Engineering and Construction Works; and Manufacturing segments. The company designs, constructs, and installs foundations and piling systems, such as cast-in-place bored, driven, and jacked-in piles, as well as micropiles and hand-dug caissons; constructs earth retaining systems for the construction of building basements, stabilization of earth slopes for road works and general earthworks, tunnels, and jetties; and constructs sub-structures and basements, including structure works below building super-structures comprising pile caps, ground beams, basement slabs, and basement wall works.

Pintaras Jaya Berhad Fundamentals Summary

How do Pintaras Jaya Berhad's earnings and revenue compare to its market cap?
PTARAS fundamental statistics
Market Cap	RM368.22m
Earnings (TTM)	RM39.07m
Revenue (TTM)	RM429.50m

9.4x

P/E Ratio

0.9x

P/S Ratio

Is PTARAS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PTARAS income statement (TTM)
Revenue	RM429.50m
Cost of Revenue	RM360.09m
Gross Profit	RM69.41m
Other Expenses	RM30.34m
Earnings	RM39.07m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.24
Gross Margin	16.16%
Net Profit Margin	9.10%
Debt/Equity Ratio	1.0%

How did PTARAS perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PTARAS. This is calculated by dividing PTARAS's market cap by their current preferred multiple.
What is PTARAS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM368.22m

PTARAS 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/Revenue	0.6x
Enterprise Value/EBITDA	3.4x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

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

PTARAS PE Ratio vs Peers

The above table shows the PE ratio for PTARAS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19.8x
PESTECH Pestech International Berhad	7.9x	-3.0%	RM443.0m
KKB KKB Engineering Berhad	20.8x	n/a	RM392.7m
PEKAT Pekat Group Berhad	23.2x	n/a	RM290.2m
NESTCON Nestcon Berhad	27.5x	n/a	RM283.3m
PTARAS Pintaras Jaya Berhad	9.4x	9.7%	RM368.2m

Price-To-Earnings vs Peers: PTARAS is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (19.8x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: PTARAS is good value based on its Price-To-Earnings Ratio (9.4x) compared to the MY Construction industry average (18.9x)

Price to Earnings Ratio vs Fair Ratio

What is PTARAS'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.

PTARAS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.4x
Fair PE Ratio	11.4x

Price-To-Earnings vs Fair Ratio: PTARAS is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.4x).

Share Price vs Fair Value

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

Below Fair Value: PTARAS (MYR2.22) is trading above our estimate of fair value (MYR1.81)

Significantly Below Fair Value: PTARAS is trading above our estimate of fair value.

Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Future Growth

How is Pintaras Jaya Berhad forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTARAS's forecast earnings growth (9.7% per year) is above the savings rate (3.6%).

Earnings vs Market: PTARAS's earnings (9.7% per year) are forecast to grow slower than the MY market (10.2% per year).

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

Revenue vs Market: PTARAS's revenue (3.1% per year) is forecast to grow slower than the MY market (5.1% per year).

High Growth Revenue: PTARAS's revenue (3.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PTARAS's Return on Equity is forecast to be low in 3 years time (11.2%).

Discover growth companies

Past Performance

How has Pintaras Jaya Berhad performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

20.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PTARAS has a large one-off gain of MYR11.1M impacting its March 31 2022 financial results.

Growing Profit Margin: PTARAS's current net profit margins (9.1%) are lower than last year (17.3%).

Past Earnings Growth Analysis

Earnings Trend: PTARAS's earnings have grown by 20% per year over the past 5 years.

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

Earnings vs Industry: PTARAS had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the Construction industry average (-6.8%).

Return on Equity

High ROE: PTARAS's Return on Equity (10.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Pintaras Jaya Berhad's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PTARAS's short term assets (MYR299.3M) exceed its short term liabilities (MYR122.6M).

Long Term Liabilities: PTARAS's short term assets (MYR299.3M) exceed its long term liabilities (MYR28.4M).

Debt to Equity History and Analysis

Debt Level: PTARAS has more cash than its total debt.

Reducing Debt: Insufficient data to determine if PTARAS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PTARAS's debt is well covered by operating cash flow (1095.3%).

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

Balance Sheet

Discover healthy companies

Dividend

What is Pintaras Jaya Berhad current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PTARAS's dividend (4.5%) is higher than the bottom 25% of dividend payers in the MY market (2%).

High Dividend: PTARAS's dividend (4.5%) is low compared to the top 25% of dividend payers in the MY market (4.86%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.4%), PTARAS's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (71.6%), PTARAS's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

3.9yrs

Average management tenure

CEO

Hong Chiu (67 yo)

32.75yrs

Tenure

RM150,000

Compensation

Dr. Hong Keong Chiu co-founded Pintaras Jaya berhad and has been its Managing Director since November 23, 1989. Dr. Chiu served as Geotechnical Engineer of Victorian Country Roads Board of Australia for a...

CEO Compensation Analysis

Compensation vs Market: Hong's total compensation ($USD33.71K) is below average for companies of similar size in the MY market ($USD111.82K).

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

Leadership Team

Experienced Management: PTARAS's management team is considered experienced (3.9 years average tenure).

Board Members

Experienced Board: PTARAS's board of directors are seasoned and experienced ( 10.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30