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SERS

Sersol BerhadKLSE:SERSOL Stock Report

Market Cap

RM96.4m

7D

-3.5%

1Y

141.2%

Updated

23 Sep, 2021

Data

Company Financials
SERSOL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

SERSOL Overview

Sersol Berhad, an investment holding company, manufactures and sells coatings, thinners, industrial chemicals, paints, chemical solvents, and aluminum and metal products in Malaysia and Thailand.

Price History & Performance

Summary of all time highs, changes and price drops for Sersol Berhad
Historical stock prices
Current Share PriceRM0.41
52 Week HighRM0.14
52 Week LowRM0.62
Beta1.05
1 Month Change-5.75%
3 Month Change49.09%
1 Year Change141.18%
3 Year Change290.48%
5 Year Change215.39%
Change since IPO36.67%

Recent News & Updates

Shareholder Returns

SERSOLMY ChemicalsMY Market
7D-3.5%1.0%-0.7%
1Y141.2%41.3%6.2%

Return vs Industry: SERSOL exceeded the MY Chemicals industry which returned 41.2% over the past year.

Return vs Market: SERSOL exceeded the MY Market which returned 6.1% over the past year.

Price Volatility

Is SERSOL's price volatile compared to industry and market?
SERSOL volatility
SERSOL Beta1.05
Industry Beta0.57
Market Beta1

Stable Share Price: SERSOL is more volatile than 90% of MY stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: SERSOL's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of MY stocks.

About the Company

FoundedEmployeesCEOWebsite
n/an/aJustin Limhttps://www.sersol.com.my

Sersol Berhad, an investment holding company, manufactures and sells coatings, thinners, industrial chemicals, paints, chemical solvents, and aluminum and metal products in Malaysia and Thailand. It operates through three segments: Plastic and Metal Coatings, Wood Coatings, and Decorative Coatings. The company also trades in architectural coatings and wall surface finishing materials; and operates as a painting service contractor.

Sersol Berhad Fundamentals Summary

How do Sersol Berhad's earnings and revenue compare to its market cap?
SERSOL fundamental statistics
Market CapRM96.38m
Earnings (TTM)RM685.81k
Revenue (TTM)RM16.34m

140.9x

P/E Ratio

5.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SERSOL income statement (TTM)
RevenueRM16.34m
Cost of RevenueRM11.07m
Gross ProfitRM5.27m
ExpensesRM4.59m
EarningsRM685.81k

Valuation

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

45.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SERSOL (MYR0.41) is trading below our estimate of fair value (MYR0.75)

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


Price To Earnings Ratio

PE vs Industry: SERSOL is poor value based on its PE Ratio (140.9x) compared to the MY Chemicals industry average (16.7x).

PE vs Market: SERSOL is poor value based on its PE Ratio (140.9x) compared to the MY market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SERSOL is overvalued based on its PB Ratio (6x) compared to the MY Chemicals industry average (1.3x).


Future Growth

How is Sersol Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-9.8%

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 Sersol 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 Sersol Berhad performed over the past 5 years?

51.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SERSOL has high quality earnings.

Growing Profit Margin: SERSOL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SERSOL has become profitable over the past 5 years, growing earnings by 51.4% per year.

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

Earnings vs Industry: SERSOL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (70.8%).


Return on Equity

High ROE: SERSOL's Return on Equity (4.3%) is considered low.


Financial Health

How is Sersol Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: SERSOL's short term assets (MYR13.2M) exceed its short term liabilities (MYR3.1M).

Long Term Liabilities: SERSOL's short term assets (MYR13.2M) exceed its long term liabilities (MYR924.0K).


Debt to Equity History and Analysis

Debt Level: SERSOL is debt free.

Reducing Debt: SERSOL has no debt compared to 5 years ago when its debt to equity ratio was 20%.

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

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


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SERSOL'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?

0.08yrs

Average management tenure


CEO

Justin Lim (45 yo)

0.083

Tenure

Mr. Hwa Tat Lim also known as Justin, has been Managing Director and Executive Director at Sersol Berhad since August 05, 2021. Mr. Lim is a Malaysian hands-on Chief Executive Officer with years of experti...


Leadership Team

Experienced Management: SERSOL's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: SERSOL's board of directors are not considered experienced ( 0.1 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 been diluted in the past year, with total shares outstanding growing by 9.2%.


Top Shareholders

Company Information

Sersol Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Sersol Berhad
  • Ticker: SERSOL
  • Exchange: KLSE
  • Founded: NaN
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: RM96.375m
  • Shares outstanding: 235.06m
  • Website: https://www.sersol.com.my

Location

  • Sersol Berhad
  • 1-40-2, Menara Bangkok Bank
  • Berjaya Central Park
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50450
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 15:57
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
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.