KLSE:WCT

Stock Analysis Report

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Market Cap

RM737.0m

Last Updated

2021/07/31 11:04 UTC

Data Sources

Company Financials +

Executive Summary

WCT Holdings Berhad, an investment holding company, engages in engineering and construction, property development, and property investment and management activities in Malaysia, the Middle East, and internationally. More Details


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-7.1%

WCT

-2.0%

MY Construction

-1.9%

MY Market


1 Year Return

11.8%

WCT

-6.4%

MY Construction

-1.5%

MY Market

Return vs Industry: WCT exceeded the MY Construction industry which returned -6.4% over the past year.

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


Shareholder returns

WCTIndustryMarket
7 Day-7.1%-2.0%-1.9%
30 Day-1.0%-1.8%-1.3%
90 Day0%-12.4%-6.6%
1 Year11.8%11.8%-3.1%-6.4%2.1%-1.5%
3 Year-46.7%-46.7%-21.1%-26.9%-3.7%-12.8%
5 Year-65.5%-66.7%-38.1%-46.7%8.6%-9.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is WCT Holdings Berhad undervalued compared to its fair value and its price relative to the market?

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WCT (MYR0.52) is trading below our estimate of fair value (MYR0.79)

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


Price To Earnings Ratio

PE vs Industry: WCT is unprofitable, so we can't compare its PE Ratio to the MY Construction industry average.

PE vs Market: WCT is unprofitable, so we can't compare its PE Ratio to the MY market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WCT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WCT is good value based on its PB Ratio (0.2x) compared to the MY Construction industry average (0.8x).


Future Growth

How is WCT Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

31.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WCT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.6%).

Earnings vs Market: WCT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WCT's is expected to become profitable in the next 3 years.

Revenue vs Market: WCT's revenue (8.9% per year) is forecast to grow faster than the MY market (6.1% per year).

High Growth Revenue: WCT's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WCT's Return on Equity is forecast to be low in 3 years time (2.4%).


Past Performance

How has WCT Holdings Berhad performed over the past 5 years?

-47.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WCT is currently unprofitable.

Growing Profit Margin: WCT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WCT is unprofitable, and losses have increased over the past 5 years at a rate of 47.2% per year.

Accelerating Growth: Unable to compare WCT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WCT is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-24.6%).


Return on Equity

High ROE: WCT has a negative Return on Equity (-2.9%), as it is currently unprofitable.


Financial Health

How is WCT Holdings Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: WCT's short term assets (MYR3.2B) exceed its short term liabilities (MYR2.3B).

Long Term Liabilities: WCT's short term assets (MYR3.2B) exceed its long term liabilities (MYR2.5B).


Debt to Equity History and Analysis

Debt Level: WCT's debt to equity ratio (78.4%) is considered high.

Reducing Debt: WCT's debt to equity ratio has reduced from 98.1% to 78.4% over the past 5 years.

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

Interest Coverage: WCT's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

What is WCT Holdings Berhad current dividend yield, its reliability and sustainability?

2.48%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WCT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WCT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WCT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WCT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WCT is not paying a notable dividend for the MY market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WCT's dividend in 3 years as they are not forecast to pay a notable one for the MY market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Tuck Lee (67 yo)

4.17yrs

Tenure

RM2,602,193

Compensation

Dato’ Sri Tuck Fook Lee, DIMP, SSAP, has been Group Managing Director of WCT Holdings Berhad since April 3, 2017. Dato’ Sri Lee served as the Managing Director at Malton Bhd from December 12, 2003 to Febru...


CEO Compensation Analysis

Compensation vs Market: Tuck's total compensation ($USD615.95K) is above average for companies of similar size in the MY market ($USD191.77K).

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


Leadership Team

Experienced Management: WCT's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: WCT's board of directors are considered experienced (4.6 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

WCT Holdings Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WCT Holdings Berhad
  • Ticker: WCT
  • Exchange: KLSE
  • Founded: 1981
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: RM736.962m
  • Shares outstanding: 1.42b
  • Website: https://www.wct.com.my

Number of Employees


Location

  • WCT Holdings Berhad
  • B-30-01, The Ascent, Paradigm
  • No. 1, Jalan SS7/26A
  • Petaling Jaya
  • Selangor
  • 47301
  • Malaysia

Listings


Biography

WCT Holdings Berhad, an investment holding company, engages in engineering and construction, property development, and property investment and management activities in Malaysia, the Middle East, and intern...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 11:04
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.