KLSE:GENM

Stock Analysis Report

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Executive Summary

Genting Malaysia Berhad operates in the leisure and hospitality business covering theme parks, gaming, hotels, seaside resorts, and entertainment in Malaysia, the United Kingdom, Egypt, the United States, and the Bahamas.


Snowflake Analysis

High growth potential average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GENM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

GENM

1.4%

MY Hospitality

4.1%

MY Market


1 Year Return

-22.2%

GENM

-27.6%

MY Hospitality

-8.6%

MY Market

Return vs Industry: GENM exceeded the MY Hospitality industry which returned -27.1% over the past year.

Return vs Market: GENM underperformed the MY Market which returned -7.9% over the past year.


Shareholder returns

GENMIndustryMarket
7 Day1.2%1.4%4.1%
30 Day-1.5%-2.9%0.7%
90 Day21.3%10.2%16.4%
1 Year-16.2%-22.2%-23.8%-27.6%-5.3%-8.6%
3 Year-47.0%-54.7%-41.6%-48.1%-5.1%-16.6%
5 Year-25.7%-39.5%-34.3%-44.5%4.6%-13.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Genting Malaysia Berhad undervalued compared to its fair value and its price relative to the market?

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GENM (MYR2.56) is trading below our estimate of fair value (MYR4.69)

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


Price To Earnings Ratio

PE vs Industry: GENM is poor value based on its PE Ratio (20.4x) compared to the Hospitality industry average (13.3x).

PE vs Market: GENM is poor value based on its PE Ratio (20.4x) compared to the MY market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: GENM is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: GENM is overvalued based on its PB Ratio (0.8x) compared to the MY Hospitality industry average (0.4x).


Next Steps

Future Growth

How is Genting Malaysia Berhad forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

94.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GENM's forecast earnings growth (94% per year) is above the savings rate (3.9%).

Earnings vs Market: GENM's earnings (94% per year) are forecast to grow faster than the MY market (16.7% per year).

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

Revenue vs Market: GENM's revenue (23.3% per year) is forecast to grow faster than the MY market (6.4% per year).

High Growth Revenue: GENM's revenue (23.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GENM's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Genting Malaysia Berhad performed over the past 5 years?

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GENM has high quality earnings.

Growing Profit Margin: GENM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GENM's earnings have declined by -14.9% per year over the past 5 years.

Accelerating Growth: GENM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GENM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (1.9%).


Return on Equity

High ROE: GENM's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Genting Malaysia Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: GENM's short term assets (MYR8.1B) exceed its short term liabilities (MYR4.7B).

Long Term Liabilities: GENM's short term assets (MYR8.1B) do not cover its long term liabilities (MYR11.3B).


Debt to Equity History and Analysis

Debt Level: GENM's debt to equity ratio (62.3%) is considered high.

Reducing Debt: GENM's debt to equity ratio has increased from 9.5% to 62.3% over the past 5 years.

Debt Coverage: GENM's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: GENM's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Genting Malaysia Berhad current dividend yield, its reliability and sustainability?

7.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GENM's dividend (7.81%) is higher than the bottom 25% of dividend payers in the MY market (1.82%).

High Dividend: GENM's dividend (7.81%) is in the top 25% of dividend payers in the MY market (5.31%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.7%), GENM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GENM's dividends in 3 years are not forecast to be well covered by earnings (95.4% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Kok Lim (68yo)

no data

Tenure

RM67,723,000

Compensation

Mr. Kok Thay Lim serves as a Deputy Chairman of the Board at Genting Plantations Berhad since January 1, 2019. He served as the Chief Executive Officer of Genting Plantations Berhad since February 28, 2008 ...


CEO Compensation Analysis

Compensation vs Market: Kok's total compensation ($USD15.83M) is above average for companies of similar size in the MY market ($USD718.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kok Lim
Chairman & Chief Executiveno dataRM67.72m0.44% MYR63.9m
Keong Lim
Deputy CEO & Non-Independent Executive Director8yrsRM9.13m0.024% MYR3.5m
Choong Lee
President0.50yrno data0.069% MYR10.0m
Poy Koh
Chief Financial Officer10.5yrsno datano data
Chim Heng
Senior Vice President of Legal & Complianceno datano datano data
Beng Leow
Executive Vice President of Sales & Marketingno datano datano data
Cher Quan
Senior Vice President of Human Resourcesno datano datano data
Thiam Lee
Head of Business Operations & Strategiesno datano datano data
Edward Holloway
Executive Vice President of Leisure & Hospitalityno datano datano data
Khong Chia
Executive Vice President of Gaming Operations & Securityno datano datano data

3.9yrs

Average Tenure

61yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Kok Lim
Chairman & Chief Executiveno dataRM67.72m0.44% MYR63.9m
Keong Lim
Deputy CEO & Non-Independent Executive Director8yrsRM9.13m0.024% MYR3.5m
Choong Lee
President0.50yrno data0.069% MYR10.0m
Chek Tin Quah
Independent Non-Executive Director11.75yrsRM162.00k0.000090% MYR13.0k
Alwi bin Jantan
Deputy Chairman & Senior Independent Director1.5yrsRM135.00k0.011% MYR1.5m
Clifford Herbert
Independent Non-Executive Director18.08yrsRM190.00kno data
Mohd Bin Haji Zainuddin
Independent Non-Executive Director14.92yrsRM133.00k0.00018% MYR26.1k
Eng Teo
Independent Non-Executive Director10.42yrsRM167.00k0.0096% MYR1.4m
Hong Koh
Independent Non-Executive Director8yrsRM159.00k0.00018% MYR26.1k
Kwai Chong
Independent Non-Executive Director1.58yrsRM10.00kno data

8.0yrs

Average Tenure

68.5yo

Average Age

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


Top Shareholders

Company Information

Genting Malaysia Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genting Malaysia Berhad
  • Ticker: GENM
  • Exchange: KLSE
  • Founded: 1980
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: RM14.472b
  • Shares outstanding: 5.65b
  • Website: https://www.gentingmalaysia.com

Number of Employees


Location

  • Genting Malaysia Berhad
  • Wisma Genting
  • 24th Floor
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50250
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GENMKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRJul 1992
GMAL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1992
GMAL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 2009

Biography

Genting Malaysia Berhad operates in the leisure and hospitality business covering theme parks, gaming, hotels, seaside resorts, and entertainment in Malaysia, the United Kingdom, Egypt, the United States, and the Bahamas. It operates through Leisure & Hospitality, and Properties segments. The Leisure & Hospitality segment comprises integrated resort activities, which include gaming, hotels, food and beverage, theme parks, and retail and entertainment attractions, as well as tours and travel related, and other supporting services. The Properties segment is involved in the development and sale of land and properties, as well as letting of apartment units; and property investment and management activities. The company also engages in the operation of casinos; and provision of information technology and consultancy services. In addition, it provides investment, marketing, private debt securities issuance, training, administrative, show agency, condotel, golf resort, cable car and related support, creative and art, project and construction management, offshore financing, karaoke, payment and collection agency, online gaming, loyalty programme, garbage collection and disposal, sewerage, investment trading, reinsurance, and resort management services. Further, the company offers electricity supply, water, liquefied petroleum gas, and other services at Genting Highlands; operates sportsbooks; owns and operates aircraft; owns sea vessels; researches and develops software; and operates a video lottery facility. The company was formerly known as Resorts World Bhd. Genting Malaysia Berhad was incorporated in 1980 and is headquartered in Kuala Lumpur, Malaysia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 14:58
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.