Texchem Resources Bhd Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Share Price vs Fair Value

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

Below Fair Value: TEXCHEM (MYR0.8) is trading above our estimate of fair value (MYR0.38)

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

Key Valuation Metric

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

Key metric: As TEXCHEM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TEXCHEM. This is calculated by dividing TEXCHEM's market cap by their current revenue.
What is TEXCHEM's PS Ratio?
PS Ratio	0.09x
Sales	RM 1.09b
Market Cap	RM 93.67m

TEXCHEM 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	0.4x
Enterprise Value/EBITDA	8.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does TEXCHEM's PS Ratio compare to its peers?

The above table shows the PS ratio for TEXCHEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.1x
WARISAN Warisan TC Holdings Berhad	0.2x	n/a	RM 89.8m
INCKEN Inch Kenneth Kajang Rubber	6.9x	n/a	RM 147.7m
MUIIND Malayan United Industries Berhad	0.5x	n/a	RM 209.7m
ASB Advance Synergy Berhad	0.9x	n/a	RM 227.6m
TEXCHEM Texchem Resources Bhd	0.09x	5.2%	RM 93.7m

Price-To-Sales vs Peers: TEXCHEM is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (2.1x).

Price to Sales Ratio vs Industry

How does TEXCHEM's PS Ratio compare vs other companies in the Asian Industrials Industry?

26 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.8x	6.2%
TEXCHEM Texchem Resources Bhd	0.09x	5.2%	US$21.08m

26 Companies		Estimated Growth	Market Cap
Industry Avg.	0.8x	13.5%
TEXCHEM Texchem Resources Bhd	0.09x	77.3%	US$21.08m

No more companies

Price-To-Sales vs Industry: TEXCHEM is good value based on its Price-To-Sales Ratio (0.1x) compared to the Asian Industrials industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is TEXCHEM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TEXCHEM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.09x
Fair PS Ratio	0.6x

Price-To-Sales vs Fair Ratio: TEXCHEM is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Coastal Contracts Bhd

RM 802.6m

An investment holding company, provides energy infrastructure and marine services and solutions in Malaysia, Mexico, Saudi Arabia, and internationally.

COASTAL

RM 1.50

-2.0%

-10.7%

Hong Leong Industries Berhad

RM 4.6b

An investment holding company, engages in the manufacture and sale of consumer and industrial products in Malaysia, Australia, Vietnam, Thailand, Singapore, Taiwan, and internationally.

HLIND

RM 14.76

3.5%

58.0%

Dancomech Holdings Berhad

RM 190.3m

An investment holding company, trades in and distributes process control equipment, measurement instruments, and industrial pumps in Malaysia, Indonesia, and internationally.

DANCO

RM 0.43

-3.4%

1.2%