Press Metal Aluminium Holdings Berhad (KLSE:PMETAL) - Share price, News & Analysis

PMETAL fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	4/6
Financial Health	3/6
Dividends	0/6

PMETAL Stock Overview

Rewards

Trading at 23.1% below our estimate of its fair value

Earnings are forecast to grow 24.55% per year

Earnings have grown 6% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year

Press Metal Aluminium Holdings Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Press Metal Aluminium Holdings Berhad
Historical stock prices
Current Share Price	RM5.28
52 Week High	RM7.40
52 Week Low	RM4.62
Beta	1.05
1 Month Change	-19.27%
3 Month Change	-23.59%
1 Year Change	1.54%
3 Year Change	147.89%
5 Year Change	289.67%
Change since IPO	8,995.61%

Recent News & Updates

May 12

Returns On Capital At Press Metal Aluminium Holdings Berhad (KLSE:PMETAL) Have Hit The Brakes

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Apr 12

Calculating The Intrinsic Value Of Press Metal Aluminium Holdings Berhad (KLSE:PMETAL)

Does the April share price for Press Metal Aluminium Holdings Berhad ( KLSE:PMETAL ) reflect what it's really worth...

Shareholder Returns

	PMETAL	MY Metals and Mining	MY Market
7D	4.1%	2.7%	0.08%
1Y	1.5%	3.6%	-2.8%

Return vs Industry: PMETAL underperformed the MY Metals and Mining industry which returned 5.1% over the past year.

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

Price Volatility

Is PMETAL's price volatile compared to industry and market?
PMETAL volatility
PMETAL Average Weekly Movement	6.3%
Metals and Mining Industry Average Movement	6.2%
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: PMETAL is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PMETAL's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	7,230	Poh Koon	https://www.pressmetal.com

Press Metal Aluminium Holdings Berhad, together with its subsidiaries, engages in manufacturing and trading aluminum, and smelting and extrusion products in Malaysia, Asia, Oceania, Europe, the United States, and Africa. The company operates through four segments: Smelting and Extrusion, Trading, Refinery, and Investment Holding. Its primary products include aluminum ingots and billets, wire rods, and foundry alloys.

Press Metal Aluminium Holdings Berhad Fundamentals Summary

How do Press Metal Aluminium Holdings Berhad's earnings and revenue compare to its market cap?
PMETAL fundamental statistics
Market Cap	RM43.51b
Earnings (TTM)	RM1.00b
Revenue (TTM)	RM11.00b

43.4x

P/E Ratio

4.0x

P/S Ratio

Is PMETAL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PMETAL income statement (TTM)
Revenue	RM11.00b
Cost of Revenue	RM8.93b
Gross Profit	RM2.06b
Other Expenses	RM1.06b
Earnings	RM1.00b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	18.74%
Net Profit Margin	9.11%
Debt/Equity Ratio	125.1%

How did PMETAL perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

30%

Payout Ratio

Valuation

Is Press Metal Aluminium Holdings Berhad undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

23.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PMETAL (MYR5.28) is trading below our estimate of fair value (MYR6.87)

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

Price To Earnings Ratio

PE vs Industry: PMETAL is poor value based on its PE Ratio (43.4x) compared to the MY Metals and Mining industry average (6.2x).

PE vs Market: PMETAL is poor value based on its PE Ratio (43.4x) compared to the MY market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: PMETAL is poor value based on its PEG Ratio (1.8x)

Price to Book Ratio

PB vs Industry: PMETAL is overvalued based on its PB Ratio (11.2x) compared to the MY Metals and Mining industry average (0.6x).

Future Growth

How is Press Metal Aluminium Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMETAL's forecast earnings growth (24.6% per year) is above the savings rate (3.6%).

Earnings vs Market: PMETAL's earnings (24.6% per year) are forecast to grow faster than the MY market (10.9% per year).

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

Revenue vs Market: PMETAL's revenue (8% per year) is forecast to grow faster than the MY market (6.6% per year).

High Growth Revenue: PMETAL's revenue (8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PMETAL's Return on Equity is forecast to be high in 3 years time (32.2%)

Past Performance

How has Press Metal Aluminium Holdings 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

6.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PMETAL has high quality earnings.

Growing Profit Margin: PMETAL's current net profit margins (9.1%) are higher than last year (6.2%).

Past Earnings Growth Analysis

Earnings Trend: PMETAL's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: PMETAL's earnings growth over the past year (117.9%) exceeds its 5-year average (6% per year).

Earnings vs Industry: PMETAL earnings growth over the past year (117.9%) underperformed the Metals and Mining industry 173.2%.

Return on Equity

High ROE: Whilst PMETAL's Return on Equity (26.33%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Press Metal Aluminium Holdings 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: PMETAL's short term assets (MYR5.0B) exceed its short term liabilities (MYR4.6B).

Long Term Liabilities: PMETAL's short term assets (MYR5.0B) exceed its long term liabilities (MYR4.7B).

Debt to Equity History and Analysis

Debt Level: PMETAL's net debt to equity ratio (115.5%) is considered high.

Reducing Debt: PMETAL's debt to equity ratio has increased from 123.7% to 125.1% over the past 5 years.

Debt Coverage: PMETAL's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: PMETAL's interest payments on its debt are well covered by EBIT (13.6x coverage).

Balance Sheet

Dividend

What is Press Metal Aluminium Holdings Berhad current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

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

0.76%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PMETAL's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.85%).

High Dividend: PMETAL's dividend (0.76%) is low compared to the top 25% of dividend payers in the MY market (4.6%).

Stability and Growth of Payments

Stable Dividend: PMETAL is not paying a notable dividend for the MY market, therefore no need to check if payments are stable.

Growing Dividend: PMETAL is not paying a notable dividend for the MY market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: PMETAL is not paying a notable dividend for the MY market.

Cash Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

9.3yrs

Average management tenure

CEO

Poh Koon (60 yo)

4.83yrs

Tenure

RM2,520,000

Compensation

Dato' Poh Keong Koon is a Co-Founder of Press Metal Aluminium Holdings Berhad (formerly known as Press Metal Berhad) and has been its Group Chief Executive Officer since July 04, 2017 and is a Member of Ma...

CEO Compensation Analysis

Compensation vs Market: Poh's total compensation ($USD575.28K) is below average for companies of similar size in the MY market ($USD1.73M).

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

Leadership Team

Experienced Management: PMETAL's management team is seasoned and experienced (9.3 years average tenure).

Board Members

Experienced Board: PMETAL's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 2%.

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