KLSE:KPJ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

KPJ Healthcare Berhad

Market Cap

RM4.4b

Last Updated

2021/06/17 11:01 UTC

Data Sources

Company Financials +

Executive Summary

KPJ Healthcare Berhad, an investment holding company, engages in the operation of specialist hospitals in Malaysia and internationally. More Details


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KPJ is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: KPJ's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

KPJ

4.7%

MY Healthcare

0.08%

MY Market


1 Year Return

20.5%

KPJ

8.0%

MY Healthcare

9.8%

MY Market

Return vs Industry: KPJ exceeded the MY Healthcare industry which returned 6.5% over the past year.

Return vs Market: KPJ exceeded the MY Market which returned 9.9% over the past year.


Shareholder returns

KPJIndustryMarket
7 Day2.0%4.7%0.08%
30 Day3.5%5.8%-0.2%
90 Day2.0%3.4%-3.5%
1 Year21.4%20.5%8.9%8.0%13.5%9.8%
3 Year7.0%2.0%0.7%-2.1%4.9%-5.0%
5 Year4.3%-4.0%-8.1%-11.8%15.3%-4.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KPJ (MYR1.02) is trading below our estimate of fair value (MYR2.23)

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


Price To Earnings Ratio

PE vs Industry: KPJ is good value based on its PE Ratio (51.4x) compared to the MY Healthcare industry average (54.6x).

PE vs Market: KPJ is poor value based on its PE Ratio (51.4x) compared to the MY market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: KPJ is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: KPJ is good value based on its PB Ratio (2.1x) compared to the MY Healthcare industry average (3.6x).


Future Growth

How is KPJ Healthcare Berhad forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KPJ's forecast earnings growth (34% per year) is above the savings rate (3.6%).

Earnings vs Market: KPJ's earnings (34% per year) are forecast to grow faster than the MY market (10.2% per year).

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

Revenue vs Market: KPJ's revenue (14.2% per year) is forecast to grow faster than the MY market (5.9% per year).

High Growth Revenue: KPJ's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KPJ's Return on Equity is forecast to be low in 3 years time (9.3%).


Past Performance

How has KPJ Healthcare Berhad performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KPJ has high quality earnings.

Growing Profit Margin: KPJ's current net profit margins (3.6%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: KPJ's earnings have grown by 1.8% per year over the past 5 years.

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

Earnings vs Industry: KPJ had negative earnings growth (-59.7%) over the past year, making it difficult to compare to the Healthcare industry average (-7.8%).


Return on Equity

High ROE: KPJ's Return on Equity (3.9%) is considered low.


Financial Health

How is KPJ Healthcare Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: KPJ's short term assets (MYR1.2B) do not cover its short term liabilities (MYR1.4B).

Long Term Liabilities: KPJ's short term assets (MYR1.2B) do not cover its long term liabilities (MYR2.7B).


Debt to Equity History and Analysis

Debt Level: KPJ's debt to equity ratio (91.8%) is considered high.

Reducing Debt: KPJ's debt to equity ratio has reduced from 94.1% to 91.8% over the past 5 years.

Debt Coverage: KPJ's debt is not well covered by operating cash flow (15.1%).

Interest Coverage: KPJ's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Dividend

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

2.07%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ahmad Shahizam Bin Mohd Shariff (49 yo)

0.92

Tenure

Mr. Ahmad Shahizam Bin Mohd Shariff serves as Managing Director and Executive Director at KPJ Healthcare Berhad since July 1, 2020. He serves as President at KPJ Healthcare Berhad. Mr. Bin Mohd Shariff has...


Leadership Team

Experienced Management: KPJ's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: KPJ's board of directors are not considered experienced ( 1.2 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

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


Key Information

  • Name: KPJ Healthcare Berhad
  • Ticker: KPJ
  • Exchange: KLSE
  • Founded: 1981
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: RM4.371b
  • Shares outstanding: 4.29b
  • Website: https://www.kpjhealth.com.my

Number of Employees


Location

  • KPJ Healthcare Berhad
  • Menara KPJ
  • Level 12
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50400
  • Malaysia

Listings


Biography

KPJ Healthcare Berhad, an investment holding company, engages in the operation of specialist hospitals in Malaysia and internationally. The company provides pathology and laboratory services; management an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 11:01
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.