KNM Group Berhad (KLSE:KNM) - Share price, News & Analysis

KNM fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

KNM Stock Overview

KNM Group Berhad engages in the provision of project management, engineering, manufacturing, and maintenance services in Asia and Oceania, Europe, the United States, and Canada.

Rewards

Trading at 66.3% below our estimate of its fair value

Risk Analysis

Highly volatile share price over the past 3 months

Shareholders have been diluted in the past year

KNM Group Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for KNM Group Berhad
Historical stock prices
Current Share Price	RM0.13
52 Week High	RM0.33
52 Week Low	RM0.12
Beta	1.94
1 Month Change	-19.36%
3 Month Change	-16.67%
1 Year Change	-24.24%
3 Year Change	-50.98%
5 Year Change	-51.92%
Change since IPO	-54.39%

Recent News & Updates

Apr 01

Health Check: How Prudently Does KNM Group Berhad (KLSE:KNM) Use Debt?

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

Dec 07

KNM Group Berhad (KLSE:KNM) Has A Somewhat Strained Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

	KNM	MY Energy Services	MY Market
7D	-7.4%	-1.5%	-1.2%
1Y	-24.2%	-27.6%	-8.7%

Return vs Industry: KNM exceeded the MY Energy Services industry which returned -27.1% over the past year.

Return vs Market: KNM underperformed the MY Market which returned -9.2% over the past year.

Price Volatility

Is KNM's price volatile compared to industry and market?
KNM volatility
KNM Average Weekly Movement	12.1%
Energy Services Industry Average Movement	6.4%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.4%
10% least volatile stocks in MY Market	2.9%

Stable Share Price: KNM is more volatile than 90% of MY stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: KNM's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of MY stocks.

About the Company

Founded	Employees	CEO	Website
1990	2,100	Terence Tan	https://www.knm-group.com

KNM Group Berhad engages in the provision of project management, engineering, manufacturing, and maintenance services in Asia and Oceania, Europe, the United States, and Canada. The company manufactures process equipment and modular systems; provides EPCC and integrated solutions for downstream oil, gas and petrochemical plants, renewable energy, power and utilities, and infrastructures and buildings; and offers repairs, modification, inspection, maintenance, assembly, trouble shooting, and spare parts supply services. Its products include quench coolers, scraped surface exchangers, process gas waste heat recovery systems, process and pressure vessels, membrane technology systems, heat transfer equipment, sour gas and sulfur technology, compression systems, process skid packages and modules, and fired and heat recovery boilers.

KNM Group Berhad Fundamentals Summary

How do KNM Group Berhad's earnings and revenue compare to its market cap?
KNM fundamental statistics
Market Cap	RM459.55m
Earnings (TTM)	-RM601.48m
Revenue (TTM)	RM1.02b

0.4x

P/S Ratio

-0.8x

P/E Ratio

Is KNM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KNM income statement (TTM)
Revenue	RM1.02b
Cost of Revenue	RM1.08b
Gross Profit	-RM54.38m
Other Expenses	RM547.10m
Earnings	-RM601.48m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.16
Gross Margin	-5.32%
Net Profit Margin	-58.81%
Debt/Equity Ratio	114.4%

How did KNM perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is KNM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KNM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KNM. This is calculated by dividing KNM's market cap by their current preferred multiple.
What is KNM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM459.55m

KNM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	48.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does KNM's PS Ratio compare to its peers?

KNM PS Ratio vs Peers

The above table shows the PS ratio for KNM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.6x

Forward PS

Price-To-Sales vs Peers: KNM is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.6x).

Price to Earnings Ratio vs Industry

How does KNM's PE Ratio compare vs other companies in the Malaysian Energy Services Industry?

Price-To-Sales vs Industry: KNM is good value based on its Price-To-Sales Ratio (0.4x) compared to the MY Energy Services industry average (0.7x)

Price to Sales Ratio vs Fair Ratio

What is KNM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KNM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate KNM's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of KNM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KNM (MYR0.13) is trading below our estimate of fair value (MYR0.37)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is KNM Group Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.1%

Forecasted Energy industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as KNM Group Berhad has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether KNM Group Berhad is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has KNM Group Berhad performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

20.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KNM is currently unprofitable.

Growing Profit Margin: KNM is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: KNM is unprofitable, but has reduced losses over the past 5 years at a rate of 20.2% per year.

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

Earnings vs Industry: KNM is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (17.4%).

Return on Equity

High ROE: KNM has a negative Return on Equity (-59.33%), as it is currently unprofitable.

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Financial Health

How is KNM Group Berhad's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: KNM's short term assets (MYR930.8M) do not cover its short term liabilities (MYR1.6B).

Long Term Liabilities: KNM's short term assets (MYR930.8M) exceed its long term liabilities (MYR568.7M).

Debt to Equity History and Analysis

Debt Level: KNM's net debt to equity ratio (82.9%) is considered high.

Reducing Debt: KNM's debt to equity ratio has increased from 54.1% to 114.4% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable KNM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: KNM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 53.8% per year.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

Earnings Coverage: KNM is not paying a notable dividend for the MY market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KNM has not reported any payouts.

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Management

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

3.1yrs

Average management tenure

CEO

Terence Tan (51 yo)

1.92yrs

Tenure

RM644,290

Compensation

Mr. Koon Ping Tan, also known as Terence, has been the Group Chief Executive Officer and Executive Director of KNM Group Berhad since July 9, 2020. He was Group Chief Financial Officer and Group Finance Di...

CEO Compensation Analysis

Compensation vs Market: Terence's total compensation ($USD146.21K) is about average for companies of similar size in the MY market ($USD113.67K).

Compensation vs Earnings: Insufficient data to compare Terence's compensation with company performance.

Leadership Team

Experienced Management: KNM's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: KNM's board of directors are not considered experienced ( 0.8 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 been diluted in the past year, with total shares outstanding growing by 10.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31