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PPB

PPB Group Berhad KLSE:PPB Stock Report

Last Price

RM15.00

Market Cap

RM21.3b

7D

-5.3%

1Y

-18.5%

Updated

27 Jun, 2022

Data

Company Financials +
PPB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends3/6

PPB Stock Overview

PPB Group Berhad, an investment holding company, engages in grains and agribusiness worldwide.

PPB Group Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PPB Group Berhad
Historical stock prices
Current Share PriceRM15.00
52 Week HighRM18.72
52 Week LowRM14.90
Beta0.21
1 Month Change-12.79%
3 Month Change-12.08%
1 Year Change-18.48%
3 Year Change-19.18%
5 Year Change6.26%
Change since IPO689.48%

Recent News & Updates

Jun 27
We Think PPB Group Berhad (KLSE:PPB) Has A Fair Chunk Of Debt

We Think PPB Group Berhad (KLSE:PPB) Has A Fair Chunk 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...

May 31
Here's What's Concerning About PPB Group Berhad's (KLSE:PPB) Returns On Capital

Here's What's Concerning About PPB Group Berhad's (KLSE:PPB) Returns On Capital

When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in...

Shareholder Returns

PPBMY FoodMY Market
7D-5.3%-2.1%-0.9%
1Y-18.5%-1.0%-7.7%

Return vs Industry: PPB underperformed the MY Food industry which returned -1.8% over the past year.

Return vs Market: PPB underperformed the MY Market which returned -8.7% over the past year.

Price Volatility

Is PPB's price volatile compared to industry and market?
PPB volatility
PPB Average Weekly Movement3.2%
Food Industry Average Movement5.0%
Market Average Movement5.6%
10% most volatile stocks in MY Market11.4%
10% least volatile stocks in MY Market2.8%

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

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

About the Company

FoundedEmployeesCEOWebsite
19684,218Soon Limhttps://www.ppbgroup.com

PPB Group Berhad, an investment holding company, engages in grains and agribusiness worldwide. It operates through six segments: Grains and Agribusiness, Consumer Products, Film Exhibition and Distribution, Environmental Engineering and Utilities, Property, and Other Operations. The company is involved in the flour milling; manufacture of animal feed; trading of wheat and maize; oil palm plantations; and production of day-old chicks, eggs, and other related downstream activities.

PPB Group Berhad Fundamentals Summary

How do PPB Group Berhad's earnings and revenue compare to its market cap?
PPB fundamental statistics
Market CapRM21.34b
Earnings (TTM)RM1.40b
Revenue (TTM)RM5.12b

15.3x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPB income statement (TTM)
RevenueRM5.12b
Cost of RevenueRM4.73b
Gross ProfitRM394.41m
Other Expenses-RM1.00b
EarningsRM1.40b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.98
Gross Margin7.70%
Net Profit Margin27.28%
Debt/Equity Ratio5.9%

How did PPB perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

36%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 PPB?

Other financial metrics that can be useful for relative valuation.

PPB 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/Revenue4.4x
Enterprise Value/EBITDA160.8x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does PPB's PE Ratio compare to its peers?

PPB PE Ratio vs Peers
The above table shows the PE ratio for PPB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average33.7x
NESTLE Nestlé (Malaysia) Berhad
52.2x10.1%RM31.3b
QL QL Resources Berhad
58.3x15.0%RM12.7b
DLADY Dutch Lady Milk Industries Berhad
8.5x-23.7%RM2.1b
GCB Guan Chong Berhad
15.6x18.8%RM2.7b
PPB PPB Group Berhad
15.3x9.0%RM21.3b

Price-To-Earnings vs Peers: PPB is good value based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (33.7x).


Price to Earnings Ratio vs Industry

How does PPB's PE Ratio compare vs other companies in the MY Food Industry?

Price-To-Earnings vs Industry: PPB is expensive based on its Price-To-Earnings Ratio (15.3x) compared to the MY Food industry average (12.2x)


Price to Earnings Ratio vs Fair Ratio

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

PPB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.3x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: PPB is good value based on its Price-To-Earnings Ratio (15.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


Share Price vs Fair Value

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

Below Fair Value: PPB (MYR15) is trading above our estimate of fair value (MYR9.17)

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


Price to Earnings Growth Ratio

PEG Ratio: PPB is poor value based on its PEG Ratio (1.7x)


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Future Growth

How is PPB Group Berhad forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPB's forecast earnings growth (9% per year) is above the savings rate (3.6%).

Earnings vs Market: PPB's earnings (9% per year) are forecast to grow slower than the MY market (9.9% per year).

High Growth Earnings: PPB's earnings are forecast to grow, but not significantly.

Revenue vs Market: PPB's revenue (5% per year) is forecast to grow slower than the MY market (5.2% per year).

High Growth Revenue: PPB's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPB's Return on Equity is forecast to be low in 3 years time (13.3%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PPB has high quality earnings.

Growing Profit Margin: PPB's current net profit margins (27.3%) are lower than last year (36.1%).


Past Earnings Growth Analysis

Earnings Trend: PPB's earnings have grown by 4.4% per year over the past 5 years.

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

Earnings vs Industry: PPB had negative earnings growth (-8.8%) over the past year, making it difficult to compare to the Food industry average (35.1%).


Return on Equity

High ROE: PPB's Return on Equity (5.3%) is considered low.


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Financial Health

How is PPB 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

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PPB's short term assets (MYR3.9B) exceed its short term liabilities (MYR2.1B).

Long Term Liabilities: PPB's short term assets (MYR3.9B) exceed its long term liabilities (MYR548.5M).


Debt to Equity History and Analysis

Debt Level: PPB's net debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: PPB's debt to equity ratio has increased from 1.2% to 5.9% over the past 5 years.

Debt Coverage: PPB's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if PPB's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.33%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PPB's dividend (2.33%) is higher than the bottom 25% of dividend payers in the MY market (2.15%).

High Dividend: PPB's dividend (2.33%) is low compared to the top 25% of dividend payers in the MY market (4.94%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.6%), PPB's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: PPB is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

9.6yrs

Average management tenure


CEO

Soon Lim (57 yo)

9.92yrs

Tenure

RM3,515,000

Compensation

Mr. Soon Huat Lim serves as the Managing Director for PPB Group Berhad. Mr. Lim held various senior executive positions in the Kuok Group of companies in Singapore, Thailand, Hong Kong, China and Indonesia...


CEO Compensation Analysis

Compensation vs Market: Soon's total compensation ($USD799.05K) is about average for companies of similar size in the MY market ($USD999.89K).

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


Leadership Team

Experienced Management: PPB's management team is seasoned and experienced (9.6 years average tenure).


Board Members

Experienced Board: PPB's board of directors are considered experienced (9.8 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

PPB Group Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: PPB Group Berhad
  • Ticker: PPB
  • Exchange: KLSE
  • Founded: 1968
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: RM21.339b
  • Shares outstanding: 1.42b
  • Website: https://www.ppbgroup.com

Number of Employees


Location

  • PPB Group Berhad
  • UBN Tower
  • 12th Floor
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50250
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.