United Plantations Berhad (KLSE:UTDPLT) - Share price, News & Analysis

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

UTDPLT Stock Overview

United Plantations Berhad engages in the cultivation and processing of oil palm, coconut, and other plantation crops in Malaysia, Indonesia, Europe, the United States, and internationally.

Rewards

Trading at 45.5% below our estimate of its fair value

Earnings have grown 4% per year over the past 5 years

Risk Analysis

Dividend of 7.96% is not well covered by earnings

United Plantations Berhad Competitors

Sime Darby Plantation Berhad

KLSE:SIMEPLT

RM36.2b

Kuala Lumpur Kepong Berhad

KLSE:KLK

RM28.8b

IOI Corporation Berhad

KLSE:IOICORP

RM27.2b

Genting Plantations Berhad

KLSE:GENP

RM7.6b

Price History & Performance

Summary of all time highs, changes and price drops for United Plantations Berhad
Historical stock prices
Current Share Price	RM14.44
52 Week High	RM17.16
52 Week Low	RM13.50
Beta	0.12
1 Month Change	-10.75%
3 Month Change	0.14%
1 Year Change	2.70%
3 Year Change	10.91%
5 Year Change	2.78%
Change since IPO	574.77%

Recent News & Updates

Apr 28

United Plantations Berhad's (KLSE:UTDPLT) Dividend Will Be Increased To RM0.85

United Plantations Berhad's ( KLSE:UTDPLT ) dividend will be increasing to RM0.85 on 18th of May. This takes the...

Mar 23

United Plantations Berhad's (KLSE:UTDPLT) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of United Plantations Berhad ( KLSE:UTDPLT ) has announced that it will be increasing its dividend on the...

Shareholder Returns

	UTDPLT	MY Food	MY Market
7D	-0.6%	0.3%	-0.2%
1Y	2.7%	4.9%	-3.5%

Return vs Industry: UTDPLT underperformed the MY Food industry which returned 4.9% over the past year.

Return vs Market: UTDPLT exceeded the MY Market which returned -3.5% over the past year.

Price Volatility

Is UTDPLT's price volatile compared to industry and market?
UTDPLT volatility
UTDPLT Average Weekly Movement	3.9%
Food Industry Average Movement	5.9%
Market Average Movement	6.0%
10% most volatile stocks in MY Market	11.9%
10% least volatile stocks in MY Market	3.1%

Stable Share Price: UTDPLT is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: UTDPLT's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1906	5,735	Carl Bek-Nielsen	https://www.unitedplantations.com

United Plantations Berhad engages in the cultivation and processing of oil palm, coconut, and other plantation crops in Malaysia, Indonesia, Europe, the United States, and internationally. The company operates through three segments: Plantations, Palm Oil Refining, and Other. It offers edible oils, fats, and cocoa butter substitutes; and trades in crude palm oil and palm kernel products.

United Plantations Berhad Fundamentals Summary

How do United Plantations Berhad's earnings and revenue compare to its market cap?
UTDPLT fundamental statistics
Market Cap	RM6.08b
Earnings (TTM)	RM503.20m
Revenue (TTM)	RM2.30b

11.9x

P/E Ratio

2.6x

P/S Ratio

Is UTDPLT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UTDPLT income statement (TTM)
Revenue	RM2.30b
Cost of Revenue	RM1.12b
Gross Profit	RM1.18b
Other Expenses	RM674.09m
Earnings	RM503.20m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)	1.21
Gross Margin	51.21%
Net Profit Margin	21.89%
Debt/Equity Ratio	0.0%

How did UTDPLT perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

78%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

45.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: UTDPLT (MYR14.44) is trading below our estimate of fair value (MYR26.47)

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

Price To Earnings Ratio

PE vs Industry: UTDPLT is good value based on its PE Ratio (11.9x) compared to the MY Food industry average (15.2x).

PE vs Market: UTDPLT is good value based on its PE Ratio (11.9x) compared to the MY market (15.2x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: UTDPLT is overvalued based on its PB Ratio (2.2x) compared to the MY Food industry average (1.1x).

Future Growth

How is United Plantations 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

-4.2%

Forecasted Food, Beverage & Tobacco 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 United Plantations 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.

Past Performance

How has United Plantations Berhad performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

4.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UTDPLT has high quality earnings.

Growing Profit Margin: UTDPLT's current net profit margins (21.9%) are lower than last year (27.1%).

Past Earnings Growth Analysis

Earnings Trend: UTDPLT's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: UTDPLT's earnings growth over the past year (28%) exceeds its 5-year average (4% per year).

Earnings vs Industry: UTDPLT earnings growth over the past year (28%) underperformed the Food industry 54.7%.

Return on Equity

High ROE: UTDPLT's Return on Equity (19%) is considered low.

Financial Health

How is United Plantations Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: UTDPLT's short term assets (MYR1.2B) exceed its short term liabilities (MYR379.4M).

Long Term Liabilities: UTDPLT's short term assets (MYR1.2B) exceed its long term liabilities (MYR192.1M).

Debt to Equity History and Analysis

Debt Level: UTDPLT is debt free.

Reducing Debt: UTDPLT had no debt 5 years ago.

Debt Coverage: UTDPLT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: UTDPLT has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is United Plantations 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

7.96%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UTDPLT's dividend (7.96%) is higher than the bottom 25% of dividend payers in the MY market (1.85%).

High Dividend: UTDPLT's dividend (7.96%) is in the top 25% of dividend payers in the MY market (4.6%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (78.3%), UTDPLT's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (708.5%), UTDPLT's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

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

13.8yrs

Average management tenure

CEO

Carl Bek-Nielsen (48 yo)

9.33yrs

Tenure

RM2,487,592

Compensation

Mr. Carl Bek-Nielsen has been the Chief Executive Director of United Plantations Berhad since January 1, 2013. Mr. Bek-Nielsen is Chairman of UIE PLC (formerly United International Enterprises Limited (UIE...

CEO Compensation Analysis

Compensation vs Market: Carl's total compensation ($USD567.88K) is about average for companies of similar size in the MY market ($USD590.18K).

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

Leadership Team

Experienced Management: UTDPLT's management team is seasoned and experienced (13.8 years average tenure).

Board Members

Experienced Board: UTDPLT's board of directors are considered experienced (8.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31