Genting Berhad (KLSE:GENTING) - Share price, News & Analysis

GENTING fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

GENTING Overview

Rewards

Trading at 17.1% below our estimate of its fair value

Earnings are forecast to grow 95.15% per year

Risk Analysis

Interest payments are not well covered by earnings

Genting Berhad Competitors

Genting Malaysia Berhad

KLSE:GENM

RM17.9b

Genting Singapore

SGX:G13

S$9.4b

Melco Resorts & Entertainment

NasdaqGS:MLCO

US$5.5b

Genting Hong Kong

SEHK:678

HK$6.1b

Price History & Performance

Summary of all time highs, changes and price drops for Genting Berhad
Historical stock prices
Current Share Price	RM5.16
52 Week High	RM2.95
52 Week Low	RM5.53
Beta	1.08
1 Month Change	5.09%
3 Month Change	7.95%
1 Year Change	70.86%
3 Year Change	-28.23%
5 Year Change	-33.76%
Change since IPO	242.48%

Recent News & Updates

Oct 07

At RM5.11, Is It Time To Put Genting Berhad (KLSE:GENTING) On Your Watch List?

Genting Berhad ( KLSE:GENTING ), is not the largest company out there, but it saw a double-digit share price rise of...

Sep 19

Genting Berhad (KLSE:GENTING) Seems To Be Using A Lot Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 31

Returns On Capital At Genting Berhad (KLSE:GENTING) Paint A Concerning Picture

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jul 23

Calculating The Intrinsic Value Of Genting Berhad (KLSE:GENTING)

How far off is Genting Berhad ( KLSE:GENTING ) from its intrinsic value? Using the most recent financial data, we'll...

Jun 10

When Should You Buy Genting Berhad (KLSE:GENTING)?

Genting Berhad ( KLSE:GENTING ), is not the largest company out there, but it saw a double-digit share price rise of...

Shareholder Returns

	GENTING	MY Hospitality	MY Market
7D	-1.7%	-0.9%	-0.3%
1Y	70.9%	26.4%	9.3%

Return vs Industry: GENTING exceeded the MY Hospitality industry which returned 26.4% over the past year.

Return vs Market: GENTING exceeded the MY Market which returned 9.3% over the past year.

Price Volatility

Is GENTING's price volatile compared to industry and market?
GENTING volatility
GENTING Beta	1.08
Industry Beta	0.91
Market Beta	1

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

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

About the Company

Founded	Employees	CEO	Website
1965	55,000	Kok Lim	https://www.genting.com

Genting Berhad, an investment holding company, engages in leisure and hospitality, oil palm plantation, power generation, oil and gas, property development and management, life sciences, and biotechnology businesses in Malaysia and internationally. Its Leisure & Hospitality segment is involved in gaming, hotels, food and beverages, theme parks, retail, entertainment and attractions, and tours and travel related businesses; the development and operation of resorts; and provision of other support services. The company’s Plantation segment operates oil palm plantations, and palm oil milling and related activities.

Genting Berhad Fundamentals Summary

How do Genting Berhad's earnings and revenue compare to its market cap?
GENTING fundamental statistics
Market Cap	RM19.87b
Earnings (TTM)	-RM1.00b
Revenue (TTM)	RM11.54b

1.7x

P/S Ratio

-19.8x

P/E Ratio

Is GENTING overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GENTING income statement (TTM)
Revenue	RM11.54b
Cost of Revenue	RM8.56b
Gross Profit	RM2.98b
Expenses	RM3.98b
Earnings	-RM1.00b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.26
Gross Margin	25.83%
Net Profit Margin	-8.68%
Debt/Equity Ratio	74.4%

How did GENTING perform over the long term?

See historical performance and comparison

Valuation

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

17.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GENTING (MYR5.16) is trading below our estimate of fair value (MYR6.22)

Significantly Below Fair Value: GENTING is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

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

PE vs Market: GENTING 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 GENTING's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: GENTING is good value based on its PB Ratio (0.6x) compared to the MY Hospitality industry average (1.1x).

Future Growth

How is Genting Berhad forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

95.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: GENTING's revenue (29.7% per year) is forecast to grow faster than the MY market (6.6% per year).

High Growth Revenue: GENTING's revenue (29.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GENTING's Return on Equity is forecast to be low in 3 years time (4.2%).

Past Performance

How has Genting Berhad performed over the past 5 years?

-38.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GENTING is currently unprofitable.

Growing Profit Margin: GENTING is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: GENTING is unprofitable, and losses have increased over the past 5 years at a rate of 38.5% per year.

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

Earnings vs Industry: GENTING is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (28.2%).

Return on Equity

High ROE: GENTING has a negative Return on Equity (-2.6%), as it is currently unprofitable.

Financial Health

How is Genting Berhad's financial position?

Financial Position Analysis

Short Term Liabilities: GENTING's short term assets (MYR27.8B) exceed its short term liabilities (MYR7.3B).

Long Term Liabilities: GENTING's short term assets (MYR27.8B) do not cover its long term liabilities (MYR42.0B).

Debt to Equity History and Analysis

Debt Level: GENTING's debt to equity ratio (74.4%) is considered high.

Reducing Debt: GENTING's debt to equity ratio has increased from 30.2% to 74.4% over the past 5 years.

Debt Coverage: GENTING's debt is not well covered by operating cash flow (4.3%).

Interest Coverage: GENTING's interest payments on its debt are not well covered by EBIT (2.7x coverage).

Balance Sheet

Dividend

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

3.12%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate GENTING'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 GENTING's dividends per share have been stable in the past.

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

Current Payout to Shareholders

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

Future Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Consumer Services industry.

Management

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

10.9yrs

Average management tenure

CEO

Kok Lim (69 yo)

18.92yrs

Tenure

RM35,800,000

Compensation

Mr. Kok Thay Lim serves as Vice Chairman at Genting Malaysia Berhad since August 27, 2020 and has been its Non-Independent Executive Director since October 17, 1988. He served as Chairman of the Board at G...

CEO Compensation Analysis

Compensation vs Market: Kok's total compensation ($USD8.61M) is above average for companies of similar size in the MY market ($USD897.17K).

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

Leadership Team

Experienced Management: GENTING's management team is seasoned and experienced (10.9 years average tenure).

Board Members

Experienced Board: GENTING's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2021/10/22 15:31
End of Day Share Price	2021/10/22 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data