KLSE:GENTING

Stock Analysis Report

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Executive Summary

Genting Berhad, an investment holding company, engages in leisure and hospitality, oil palm plantations, power generation, oil and gas, property development, life sciences, and biotechnology businesses in Malaysia and internationally.


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.5%

GENTING

1.3%

MY Hospitality

2.6%

MY Market


1 Year Return

-38.2%

GENTING

-27.8%

MY Hospitality

-10.6%

MY Market

Return vs Industry: GENTING underperformed the MY Hospitality industry which returned -29.7% over the past year.

Return vs Market: GENTING underperformed the MY Market which returned -11.5% over the past year.


Shareholder returns

GENTINGIndustryMarket
7 Day0.5%1.3%2.6%
30 Day-5.0%-2.5%1.0%
90 Day11.7%14.9%17.2%
1 Year-35.1%-38.2%-24.0%-27.8%-7.3%-10.6%
3 Year-50.0%-54.8%-42.3%-48.7%-7.6%-18.8%
5 Year-41.4%-48.0%-33.3%-43.6%3.8%-14.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GENTING (MYR4.21) is trading above our estimate of fair value (MYR3.15)

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


Price To Earnings Ratio

PE vs Industry: GENTING is good value based on its PE Ratio (12.5x) compared to the Hospitality industry average (13.1x).

PE vs Market: GENTING is good value based on its PE Ratio (12.5x) compared to the MY market (15.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GENTING is overvalued based on its PB Ratio (0.5x) compared to the MY Hospitality industry average (0.4x).


Next Steps

Future Growth

How is Genting Berhad forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

53.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GENTING's forecast earnings growth (53.4% per year) is above the savings rate (3.9%).

Earnings vs Market: GENTING's earnings (53.4% per year) are forecast to grow faster than the MY market (16.6% per year).

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

Revenue vs Market: GENTING's revenue (18.7% per year) is forecast to grow faster than the MY market (6.2% per year).

High Growth Revenue: GENTING's revenue (18.7% per year) is forecast to grow slower 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 (4.6%).


Next Steps

Past Performance

How has Genting Berhad performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GENTING has high quality earnings.

Growing Profit Margin: GENTING's current net profit margins (6.5%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: GENTING's earnings have grown by 2% per year over the past 5 years.

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

Earnings vs Industry: GENTING had negative earnings growth (-1.9%) over the past year, making it difficult to compare to the Hospitality industry average (1.9%).


Return on Equity

High ROE: GENTING's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is Genting Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: GENTING's short term assets (MYR40.7B) exceed its short term liabilities (MYR9.2B).

Long Term Liabilities: GENTING's short term assets (MYR40.7B) exceed its long term liabilities (MYR40.0B).


Debt to Equity History and Analysis

Debt Level: GENTING's debt to equity ratio (66.6%) is considered high.

Reducing Debt: GENTING's debt to equity ratio has increased from 24.4% to 66.6% over the past 5 years.

Debt Coverage: GENTING's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: GENTING's interest payments on its debt are well covered by EBIT (23.4x coverage).


Balance Sheet


Next Steps

Dividend

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

5.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GENTING's dividend (5.23%) is higher than the bottom 25% of dividend payers in the MY market (1.95%).

High Dividend: GENTING's dividend (5.23%) is low compared to the top 25% of dividend payers in the MY market (5.43%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37%), GENTING's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GENTING's dividends in 3 years are forecast to be well covered by earnings (42% payout ratio).


Next Steps

Management

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

9.7yrs

Average management tenure


CEO

Kok Lim (68yo)

17.67yrs

Tenure

RM50,700,000

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 ($USD11.83M) is above average for companies of similar size in the MY market ($USD718.40K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kok Lim
Chairman & CEO17.67yrsRM50.70m1.77% MYR286.8m
Keong Lim
Deputy CEO & Executive Director8.08yrsRM8.33mno data
Kong Tan
President0.50yrno data0.024% MYR3.9m
Yee Wong
Chief Financial Officer1.5yrsno datano data
Lee Goh
Senior Vice President of Legalno datano datano data
Tiong Ong
Chief Executive officer of Genting Energy Divisionno datano datano data
Robert Desalvio
President of Genting New York State0.58yrno datano data
Bee Loh
Secretary12.25yrsno datano data

9.7yrs

Average Tenure

54yo

Average Age

Experienced Management: GENTING's management team is seasoned and experienced (9.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kok Lim
Chairman & CEO17.67yrsRM50.70m1.77% MYR286.8m
Keong Lim
Deputy CEO & Executive Director8.08yrsRM8.33mno data
Kong Tan
President0.50yrno data0.024% MYR3.9m
R. Thillainathan
Senior Independent Non-Executive Directorno dataRM174.00k0.021% MYR3.3m
Swee Koid
Independent Non-Executive Director2.67yrsRM149.00kno data
Cheng Foong
Independent Deputy Chairman1.5yrsRM143.00k0.0018% MYR295.0k
Manharlal Ratilal
Independent Non-Executive Director1.33yrsRM14.00kno data
Lip Ooi
Independent & Non-Executive Director1.33yrsRM17.00kno data

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: GENTING's board of directors are not considered experienced ( 1.5 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.


Top Shareholders

Company Information

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


Key Information

  • Name: Genting Berhad
  • Ticker: GENTING
  • Exchange: KLSE
  • Founded: 1965
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: RM16.211b
  • Shares outstanding: 3.85b
  • Website: https://www.genting.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GENTINGKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRJan 1992
GEBH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
GEBH.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2000

Biography

Genting Berhad, an investment holding company, engages in leisure and hospitality, oil palm plantations, power generation, oil and gas, property development, 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 integrated resorts; and provision of other support services. The company’s Plantation segment engages in oil palm plantations, as well as palm oil milling and related activities. Its Power segment generates and supplies electric power. The company’s Property segment develops and invests in properties. Its Oil & Gas segment explores for, develops, and produces oil and gas. The company also offers offshore financing; advisory, technical, and administrative services to oil and gas companies; risk and insurance management consultancy services; issues private debt securities; and licenses intellectual property rights. In addition, it manufactures and sells biodiesel; and processes fresh fruit bunches. Further, the company provides project management, technical, and other management services; researches and develops technologies for genetic analysis and sequencing for oncology applications; and engages in rent-a-captive offshore insurance business. Additionally, it creates platform for early diagnosis and treatment of Alzheimer’s and other neurodegenerative diseases; and undertakes the collection, analysis, and testing of specimens, samples, and/or data for research and evaluation activities. It also engages in leasing of land rigs; provision of information technology services relating to the gaming and resort industry; and provision of international sales and marketing services, and corporate services. Genting Berhad was founded in 1965 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 Analysis2020/07/02 15:11
End of Day Share Price2020/07/02 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.