KLSE:SIME

Stock Analysis Report

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Market Cap

RM15.1b

Last Updated

2021/07/23 11:14 UTC

Data Sources

Company Financials +

Executive Summary

Sime Darby Berhad, an investment holding company, operates in the industrial, motors, logistics, healthcare, and other businesses in Malaysia and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Sime Darby Berhad's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

Volatility Over Time: SIME's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

SIME

1.1%

MY Industrials

0.8%

MY Market


1 Year Return

4.2%

SIME

3.8%

MY Industrials

1.5%

MY Market

Return vs Industry: SIME matched the MY Industrials industry which returned 3.8% over the past year.

Return vs Market: SIME exceeded the MY Market which returned 1.5% over the past year.


Shareholder returns

SIMEIndustryMarket
7 Day1.8%1.1%0.8%
30 Day0.9%0.3%-1.6%
90 Day-3.5%-1.1%-5.1%
1 Year10.5%4.2%7.5%3.8%5.2%1.5%
3 Year1.7%-11.2%-7.9%-16.7%-2.4%-11.6%
5 Year68.5%-70.1%27.8%-41.7%10.7%-7.8%

Long-Term Price Volatility Vs. Market

How volatile is Sime Darby Berhad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sime Darby Berhad undervalued compared to its fair value and its price relative to the market?

43.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIME (MYR2.22) is trading below our estimate of fair value (MYR3.92)

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


Price To Earnings Ratio

PE vs Industry: SIME is good value based on its PE Ratio (10.9x) compared to the MY Industrials industry average (12.3x).

PE vs Market: SIME is good value based on its PE Ratio (10.9x) compared to the MY market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: SIME is poor value based on its PEG Ratio (17.3x)


Price to Book Ratio

PB vs Industry: SIME is overvalued based on its PB Ratio (1x) compared to the MY Industrials industry average (0.4x).


Future Growth

How is Sime Darby Berhad forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIME's forecast earnings growth (0.6% per year) is below the savings rate (3.6%).

Earnings vs Market: SIME's earnings (0.6% per year) are forecast to grow slower than the MY market (10.7% per year).

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

Revenue vs Market: SIME's revenue (2.6% per year) is forecast to grow slower than the MY market (6% per year).

High Growth Revenue: SIME's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIME's Return on Equity is forecast to be low in 3 years time (7.5%).


Past Performance

How has Sime Darby Berhad performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIME has high quality earnings.

Growing Profit Margin: SIME's current net profit margins (3.3%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: SIME's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: SIME's earnings growth over the past year (68.2%) exceeds its 5-year average (6.5% per year).

Earnings vs Industry: SIME earnings growth over the past year (68.2%) exceeded the Industrials industry -18.6%.


Return on Equity

High ROE: SIME's Return on Equity (9.3%) is considered low.


Financial Health

How is Sime Darby Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: SIME's short term assets (MYR15.9B) exceed its short term liabilities (MYR10.4B).

Long Term Liabilities: SIME's short term assets (MYR15.9B) exceed its long term liabilities (MYR2.1B).


Debt to Equity History and Analysis

Debt Level: SIME's debt to equity ratio (9.6%) is considered satisfactory.

Reducing Debt: SIME's debt to equity ratio has reduced from 48.4% to 9.6% over the past 5 years.

Debt Coverage: SIME's debt is well covered by operating cash flow (285.3%).

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


Balance Sheet


Dividend

What is Sime Darby Berhad current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIME's dividend (4.5%) is higher than the bottom 25% of dividend payers in the MY market (1.48%).

High Dividend: SIME's dividend (4.5%) is in the top 25% of dividend payers in the MY market (4.04%)


Stability and Growth of Payments

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

Growing Dividend: SIME's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), SIME's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIME's dividends in 3 years are forecast to be covered by earnings (65.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jeffri Davidson (56 yo)

3.58yrs

Tenure

RM5,181,000

Compensation

Dato Jeffri Salim Davidson has been Group Managing Director and Group Chief Executive Officer of Sime Darby Berhad since November 21, 2017 and serves as its Executive Director since December 1, 2017. Mr. D...


CEO Compensation Analysis

Compensation vs Market: Jeffri's total compensation ($USD1.23M) is about average for companies of similar size in the MY market ($USD1.04M).

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


Leadership Team

Experienced Management: SIME's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: SIME's board of directors are considered experienced (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

Sime Darby Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sime Darby Berhad
  • Ticker: SIME
  • Exchange: KLSE
  • Founded: 1910
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: RM15.102b
  • Shares outstanding: 6.80b
  • Website: https://www.simedarby.com

Number of Employees


Location

  • Sime Darby Berhad
  • Menara Sime Darby
  • Level 9
  • Petaling Jaya
  • Selangor
  • 47301
  • Malaysia

Listings


Biography

Sime Darby Berhad, an investment holding company, operates in the industrial, motors, logistics, healthcare, and other businesses in Malaysia and internationally. It manufactures, assembles, and sells gene...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 11:14
End of Day Share Price2021/07/22 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


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.