Leon Fuat Berhad (KLSE:LEONFB) - Share price, News & Analysis

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

LEONFB Stock Overview

Leon Fuat Berhad, an investment holding company, processes and trades in steel related products in Malaysia, Singapore, Australia, Thailand, Vietnam, the Philippines, and Indonesia.

Rewards

Trading at 7.5% below our estimate of its fair value

Earnings have grown 17% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Dividend of 7.21% is not well covered by earnings

Does not have a meaningful market cap (MYR189M)

Leon Fuat Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Leon Fuat Berhad
Historical stock prices
Current Share Price	RM0.56
52 Week High	RM1.19
52 Week Low	RM0.55
Beta	1.27
1 Month Change	-13.95%
3 Month Change	-31.06%
1 Year Change	-45.59%
3 Year Change	29.07%
5 Year Change	-27.92%
Change since IPO	-9.76%

Recent News & Updates

May 27

Calculating The Fair Value Of Leon Fuat Berhad (KLSE:LEONFB)

In this article we are going to estimate the intrinsic value of Leon Fuat Berhad ( KLSE:LEONFB ) by taking the expected...

Mar 02

We Think Leon Fuat Berhad (KLSE:LEONFB) Might Have The DNA Of A Multi-Bagger

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Shareholder Returns

	LEONFB	MY Metals and Mining	MY Market
7D	-2.6%	-5.8%	-2.7%
1Y	-45.6%	-2.5%	-9.2%

Return vs Industry: LEONFB underperformed the MY Metals and Mining industry which returned -2.5% over the past year.

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

Price Volatility

Is LEONFB's price volatile compared to industry and market?
LEONFB volatility
LEONFB Average Weekly Movement	4.3%
Metals and Mining Industry Average Movement	5.5%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.3%
10% least volatile stocks in MY Market	2.9%

Stable Share Price: LEONFB is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

Founded	Employees	CEO	Website
1972	391	Seng Ooi	https://www.leonfuat.com.my

Leon Fuat Berhad, an investment holding company, processes and trades in steel related products in Malaysia, Singapore, Australia, Thailand, Vietnam, the Philippines, and Indonesia. It operates through three segments: Trading of Steel Products, Processing of Steel Products, and Others. The company offers flat steel products, such as carbon and stainless steel coils, sheets, plates, welded rectangular and square sections, and welded tubes and pipes; and alloy steel plates.

Leon Fuat Berhad Fundamentals Summary

How do Leon Fuat Berhad's earnings and revenue compare to its market cap?
LEONFB fundamental statistics
Market Cap	RM189.26m
Earnings (TTM)	RM123.80m
Revenue (TTM)	RM948.12m

1.5x

P/E Ratio

0.2x

P/S Ratio

Is LEONFB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LEONFB income statement (TTM)
Revenue	RM948.12m
Cost of Revenue	RM735.02m
Gross Profit	RM213.10m
Other Expenses	RM89.31m
Earnings	RM123.80m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.36
Gross Margin	22.48%
Net Profit Margin	13.06%
Debt/Equity Ratio	73.3%

How did LEONFB perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

5%

Payout Ratio

Does LEONFB pay a reliable dividends?

See LEONFB dividend history and benchmarks

When do you need to buy LEONFB by to receive an upcoming dividend?
Leon Fuat Berhad dividend dates
Ex Dividend Date	Jul 14 2022
Dividend Pay Date	Aug 05 2022
Days until Ex dividend	19 days
Days until Dividend pay date	41 days

Does LEONFB pay a reliable dividends?

See LEONFB dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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 LEONFB?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LEONFB. This is calculated by dividing LEONFB's market cap by their current preferred multiple.
What is LEONFB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM189.26m

LEONFB 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	0.6x
Enterprise Value/EBITDA	3.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

LEONFB PE Ratio vs Peers

The above table shows the PE ratio for LEONFB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.7x

Forward PE

Price-To-Earnings vs Peers: LEONFB is good value based on its Price-To-Earnings Ratio (1.5x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

How does LEONFB's PE Ratio compare vs other companies in the Malaysian Metals and Mining Industry?

Price-To-Earnings vs Industry: LEONFB is good value based on its Price-To-Earnings Ratio (1.5x) compared to the MY Metals and Mining industry average (4.9x)

Price to Earnings Ratio vs Fair Ratio

What is LEONFB'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.

LEONFB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.5x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: LEONFB (MYR0.56) is trading below our estimate of fair value (MYR0.6)

Significantly Below Fair Value: LEONFB is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

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

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Future Growth

How is Leon Fuat 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

15.9%

Forecasted Materials 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 Leon Fuat 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 Leon Fuat 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 Leon Fuat Berhad performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

17.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LEONFB has a high level of non-cash earnings.

Growing Profit Margin: LEONFB's current net profit margins (13.1%) are higher than last year (9.3%).

Past Earnings Growth Analysis

Earnings Trend: LEONFB's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: LEONFB's earnings growth over the past year (94.8%) exceeds its 5-year average (17% per year).

Earnings vs Industry: LEONFB earnings growth over the past year (94.8%) underperformed the Metals and Mining industry 126.2%.

Return on Equity

High ROE: LEONFB's Return on Equity (22.1%) is considered high.

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Financial Health

How is Leon Fuat Berhad's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: LEONFB's short term assets (MYR732.3M) exceed its short term liabilities (MYR401.6M).

Long Term Liabilities: LEONFB's short term assets (MYR732.3M) exceed its long term liabilities (MYR88.6M).

Debt to Equity History and Analysis

Debt Level: LEONFB's net debt to equity ratio (67.3%) is considered high.

Reducing Debt: LEONFB's debt to equity ratio has reduced from 80.8% to 73.3% over the past 5 years.

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

Interest Coverage: LEONFB's interest payments on its debt are well covered by EBIT (15x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

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

7.21%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: LEONFB's dividend (7.21%) is higher than the bottom 25% of dividend payers in the MY market (2.14%).

High Dividend: LEONFB's dividend (7.21%) is in the top 25% of dividend payers in the MY market (4.98%)

Stability and Growth of Payments

Stable Dividend: LEONFB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LEONFB's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.5%), LEONFB's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

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

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Management

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

10.0yrs

Average management tenure

CEO

Seng Ooi (59 yo)

1.67yrs

Tenure

RM70,000

Compensation

Mr. Seng Khong Ooi has been an Executive Director of Leon Fuat Berhad since June 21, 2012 and serves as its Group Managing Director since October 01, 2020. He serves as an Executive Director of Leon Fuat H...

Leadership Team

Experienced Management: LEONFB's management team is seasoned and experienced (10 years average tenure).

Board Members

Experienced Board: LEONFB's board of directors are seasoned and experienced ( 10 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	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31