SEM

7-Eleven Malaysia Holdings BerhadKLSE:SEM Stock Report

Market Cap

RM1.7b

7D

-2.0%

1Y

12.8%

Updated

18 Sep, 2021

Data

Company Financials +
SEM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance1/6
Financial Health1/6
Dividends2/6

SEM Overview

7-Eleven Malaysia Holdings Berhad, an investment holding company, owns, operates, and franchises a chain of convenience stores under the 7-Eleven brand in Malaysia.

Price History & Performance

Summary of all time highs, changes and price drops for 7-Eleven Malaysia Holdings Berhad
Historical stock prices
Current Share PriceRM1.50
52 Week HighRM1.21
52 Week LowRM1.65
Beta-0.0018
1 Month Change-3.23%
3 Month Change2.74%
1 Year Change12.78%
3 Year Change-0.66%
5 Year Change-6.25%
Change since IPO-1.96%

Recent News & Updates

May 11
7-Eleven Malaysia Holdings Berhad (KLSE:SEM) Takes On Some Risk With Its Use Of Debt

7-Eleven Malaysia Holdings Berhad (KLSE:SEM) Takes On Some Risk With Its Use Of Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

SEMMY Consumer RetailingMY Market
7D-2.0%-0.3%-1.0%
1Y12.8%6.5%5.9%

Return vs Industry: SEM exceeded the MY Consumer Retailing industry which returned 6.5% over the past year.

Return vs Market: SEM exceeded the MY Market which returned 5.9% over the past year.

Price Volatility

Is SEM's price volatile compared to industry and market?
SEM volatility
SEM Beta-0.0018
Industry Beta0.43
Market Beta1

Stable Share Price: SEM is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SEM's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192710,476U-Ming Tanhttps://www.7eleven.com.my

7-Eleven Malaysia Holdings Berhad, an investment holding company, owns, operates, and franchises a chain of convenience stores under the 7-Eleven brand in Malaysia. It operates through Convenience Stores, Pharmaceutical, and Others segments. The company’s stores offer a range of grocery and food items, including hot food and beverages; and manage the distribution of reloads of mobile phones and online games.

7-Eleven Malaysia Holdings Berhad Fundamentals Summary

How do 7-Eleven Malaysia Holdings Berhad's earnings and revenue compare to its market cap?
SEM fundamental statistics
Market CapRM1.69b
Earnings (TTM)RM30.16m
Revenue (TTM)RM2.60b

55.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SEM income statement (TTM)
RevenueRM2.60b
Cost of RevenueRM1.89b
Gross ProfitRM709.79m
ExpensesRM679.63m
EarningsRM30.16m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.027
Gross Margin27.26%
Net Profit Margin1.16%
Debt/Equity Ratio434.9%

How did SEM perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

60%

Payout Ratio

Valuation

Is 7-Eleven Malaysia Holdings Berhad undervalued compared to its fair value and its price relative to the market?

47.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEM (MYR1.5) is trading below our estimate of fair value (MYR2.87)

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


Price To Earnings Ratio

PE vs Industry: SEM is poor value based on its PE Ratio (55.9x) compared to the Asian Consumer Retailing industry average (19.8x).

PE vs Market: SEM is poor value based on its PE Ratio (55.9x) compared to the MY market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: SEM is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SEM is overvalued based on its PB Ratio (29.4x) compared to the XA Consumer Retailing industry average (1.6x).


Future Growth

How is 7-Eleven Malaysia Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

36.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEM's forecast earnings growth (36.7% per year) is above the savings rate (3.6%).

Earnings vs Market: SEM's earnings (36.7% per year) are forecast to grow faster than the MY market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SEM's revenue (11.9% per year) is forecast to grow faster than the MY market (6.3% per year).

High Growth Revenue: SEM's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEM's Return on Equity is forecast to be very high in 3 years time (88.7%).


Past Performance

How has 7-Eleven Malaysia Holdings Berhad performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEM has high quality earnings.

Growing Profit Margin: SEM's current net profit margins (1.2%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: SEM's earnings have declined by 7.6% per year over the past 5 years.

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

Earnings vs Industry: SEM had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the Consumer Retailing industry average (11.4%).


Return on Equity

High ROE: Whilst SEM's Return on Equity (22.91%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is 7-Eleven Malaysia Holdings Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: SEM's short term assets (MYR736.2M) do not cover its short term liabilities (MYR878.0M).

Long Term Liabilities: SEM's short term assets (MYR736.2M) do not cover its long term liabilities (MYR1.2B).


Debt to Equity History and Analysis

Debt Level: SEM's debt to equity ratio (434.9%) is considered high.

Reducing Debt: SEM's debt to equity ratio has increased from 44.7% to 434.9% over the past 5 years.

Debt Coverage: SEM's debt is well covered by operating cash flow (37%).

Interest Coverage: SEM's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

What is 7-Eleven Malaysia Holdings Berhad current dividend yield, its reliability and sustainability?

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEM's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.53%).

High Dividend: SEM's dividend (1.07%) is low compared to the top 25% of dividend payers in the MY market (4.16%).


Stability and Growth of Payments

Stable Dividend: SEM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SEM has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.1%), SEM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEM's dividends in 3 years are forecast to be covered by earnings (80.8% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

U-Ming Tan (35 yo)

0.75

Tenure

RM852,123

Compensation

Mr. U-Ming Tan serves as Joint Chief Executive Officer at 7-Eleven Malaysia Holdings Berhad since December 1, 2020. He served as the Head of Procurement Constructions, Maintenance and Advertising & Promoti...


CEO Compensation Analysis

Compensation vs Market: U-Ming's total compensation ($USD204.27K) is below average for companies of similar size in the MY market ($USD302.96K).

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


Leadership Team

Experienced Management: SEM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SEM's board of directors are considered experienced (8.1 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

7-Eleven Malaysia Holdings Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: 7-Eleven Malaysia Holdings Berhad
  • Ticker: SEM
  • Exchange: KLSE
  • Founded: 1927
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: RM1.685b
  • Shares outstanding: 1.12b
  • Website: https://www.7eleven.com.my

Number of Employees


Location

  • 7-Eleven Malaysia Holdings Berhad
  • Plaza Berjaya
  • Level 3A
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 55100
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 11:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
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.