KLSE:PHARMA

Stock Analysis Report

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Market Cap

RM1.1b

Last Updated

2021/07/30 16:48 UTC

Data Sources

Company Financials +

Executive Summary

Pharmaniaga Berhad, an investment holding company, operates as an integrated pharmaceutical company in Malaysia, Indonesia, and internationally. More Details


Snowflake Analysis

Fair value with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PHARMA is more volatile than 75% of MY stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: PHARMA's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of MY stocks.


Market Performance


7 Day Return

-7.3%

PHARMA

-0.3%

MY Healthcare

-1.0%

MY Market


1 Year Return

7.0%

PHARMA

9.4%

MY Healthcare

-0.7%

MY Market

Return vs Industry: PHARMA underperformed the MY Healthcare industry which returned 9.4% over the past year.

Return vs Market: PHARMA exceeded the MY Market which returned -0.7% over the past year.


Shareholder returns

PHARMAIndustryMarket
7 Day-7.3%-0.3%-1.0%
30 Day-21.3%4.7%-0.4%
90 Day21.3%6.7%-5.9%
1 Year9.0%7.0%10.3%9.4%3.0%-0.7%
3 Year47.8%31.8%1.3%-1.0%-2.8%-12.0%
5 Year-11.1%-26.8%-7.8%-11.1%9.8%-8.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pharmaniaga 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: PHARMA (MYR0.82) is trading below our estimate of fair value (MYR3.7)

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


Price To Earnings Ratio

PE vs Industry: PHARMA is good value based on its PE Ratio (38x) compared to the MY Healthcare industry average (56.8x).

PE vs Market: PHARMA is poor value based on its PE Ratio (38x) compared to the MY market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: PHARMA is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: PHARMA's PB Ratio (3x) is in line with the MY Healthcare industry average.


Future Growth

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

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHARMA's forecast earnings growth (15.7% per year) is above the savings rate (3.6%).

Earnings vs Market: PHARMA's earnings (15.7% per year) are forecast to grow faster than the MY market (10.9% per year).

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

Revenue vs Market: PHARMA's revenue (1.7% per year) is forecast to grow slower than the MY market (6.1% per year).

High Growth Revenue: PHARMA's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHARMA's Return on Equity is forecast to be low in 3 years time (15.5%).


Past Performance

How has Pharmaniaga Berhad performed over the past 5 years?

-46.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHARMA has high quality earnings.

Growing Profit Margin: PHARMA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PHARMA's earnings have declined by 46.5% per year over the past 5 years.

Accelerating Growth: PHARMA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PHARMA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (-7.8%).


Return on Equity

High ROE: PHARMA's Return on Equity (7.1%) is considered low.


Financial Health

How is Pharmaniaga Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: PHARMA's short term assets (MYR1.2B) do not cover its short term liabilities (MYR1.5B).

Long Term Liabilities: PHARMA's short term assets (MYR1.2B) exceed its long term liabilities (MYR32.3M).


Debt to Equity History and Analysis

Debt Level: PHARMA's debt to equity ratio (209.9%) is considered high.

Reducing Debt: PHARMA's debt to equity ratio has increased from 110.4% to 209.9% over the past 5 years.

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

Interest Coverage: PHARMA's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

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

0.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PHARMA's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.49%).

High Dividend: PHARMA's dividend (0.98%) is low compared to the top 25% of dividend payers in the MY market (4.17%).


Stability and Growth of Payments

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

Growing Dividend: PHARMA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.4%), PHARMA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PHARMA's dividends in 3 years are forecast to be covered by earnings (70.8% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Zulkarnain Bin Md Eusope (53 yo)

0.83

Tenure

RM848,270

Compensation

Datuk Zulkarnain Bin Md Eusope serves as Commissioner at PT Millennium Pharmacon International Tbk since May, 2021. He has been Group Managing Director of Pharmaniaga Berhad since September 1, 2020 and has...


CEO Compensation Analysis

Compensation vs Market: Zulkarnain's total compensation ($USD200.09K) is about average for companies of similar size in the MY market ($USD192.52K).

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


Leadership Team

Experienced Management: PHARMA's management team is seasoned and experienced (7.1 years average tenure).


Board Members

Experienced Board: PHARMA's board of directors are not considered experienced ( 0.7 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

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


Key Information

  • Name: Pharmaniaga Berhad
  • Ticker: PHARMA
  • Exchange: KLSE
  • Founded: 1994
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: RM1.074b
  • Shares outstanding: 1.31b
  • Website: https://www.pharmaniaga.com

Number of Employees


Location

  • Pharmaniaga Berhad
  • No. 7, Lorong Keluli 1B
  • Kawasan Perindustrian Bukit Raja Selatan
  • Shah Alam
  • Selangor
  • 40000
  • Malaysia

Listings


Biography

Pharmaniaga Berhad, an investment holding company, operates as an integrated pharmaceutical company in Malaysia, Indonesia, and internationally. The company operates through three segments: Logistics and D...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 16:48
End of Day Share Price2021/07/30 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.