Amway (Malaysia) Holdings Berhad (KLSE:AMWAY) - Share price, News & Analysis

AMWAY fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	1/6
Financial Health	6/6
Dividends	4/6

AMWAY Stock Overview

Amway (Malaysia) Holdings Berhad, an investment holding company, engages in the distribution of consumer products under the Amway trademark in Malaysia and Brunei.

Rewards

Trading at 74.5% below our estimate of its fair value

Earnings are forecast to grow 18.38% per year

Risk Analysis

Unstable dividend track record

Profit margins (2.5%) are lower than last year (4.1%)

Amway (Malaysia) Holdings Berhad Competitors

Estée Lauder Companies

NYSE:EL

US$84.5b

Revlon

NYSE:REV

US$206.4m

Price History & Performance

Summary of all time highs, changes and price drops for Amway (Malaysia) Holdings Berhad
Historical stock prices
Current Share Price	RM5.13
52 Week High	RM5.75
52 Week Low	RM5.07
Beta	0.41
1 Month Change	0.39%
3 Month Change	-5.35%
1 Year Change	-1.16%
3 Year Change	-13.64%
5 Year Change	-33.98%
Change since IPO	-37.59%

Shareholder Returns

	AMWAY	MY Online Retail	MY Market
7D	0.6%	1.7%	0.1%
1Y	-1.2%	-46.5%	-3.1%

Return vs Industry: AMWAY exceeded the MY Online Retail industry which returned -46.5% over the past year.

Return vs Market: AMWAY exceeded the MY Market which returned -3.1% over the past year.

Price Volatility

Is AMWAY's price volatile compared to industry and market?
AMWAY volatility
AMWAY Average Weekly Movement	1.3%
Online Retail Industry Average Movement	7.6%
Market Average Movement	5.8%
10% most volatile stocks in MY Market	11.6%
10% least volatile stocks in MY Market	3.1%

Stable Share Price: AMWAY is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: AMWAY's weekly volatility (1%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1976	318	Mike Duong	https://www.amway.my

Amway (Malaysia) Holdings Berhad, an investment holding company, engages in the distribution of consumer products under the Amway trademark in Malaysia and Brunei. It offers nutrition and wellness products, including vitamin, mineral, and dietary supplements under the NUTRILITE brand; energy drink under the XS brand; skincare, make-up, fragrance, and accessories under the ARTISTRY brand; personal care products, such as body care, hair care, oral care, and child care products under the GLISTER, G&H, and SATINIQUE brands; household cleaning products under the L.O.C., AMWAY HOME, and AMWAY brands; atmosphere SKY and DRIVE air purifiers and eSpring water treatment system, as well as cookware, laundry, and dish care products. The company was founded in 1976 and is headquartered in Petaling Jaya, Malaysia.

Amway (Malaysia) Holdings Berhad Fundamentals Summary

How do Amway (Malaysia) Holdings Berhad's earnings and revenue compare to its market cap?
AMWAY fundamental statistics
Market Cap	RM838.37m
Earnings (TTM)	RM36.78m
Revenue (TTM)	RM1.49b

22.9x

P/E Ratio

0.6x

P/S Ratio

Is AMWAY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMWAY income statement (TTM)
Revenue	RM1.49b
Cost of Revenue	RM1.22b
Gross Profit	RM266.29m
Other Expenses	RM229.51m
Earnings	RM36.78m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.22
Gross Margin	17.92%
Net Profit Margin	2.48%
Debt/Equity Ratio	0.06%

How did AMWAY perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

89%

Payout Ratio

Valuation

Is Amway (Malaysia) 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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AMWAY (MYR5.13) is trading below our estimate of fair value (MYR20.11)

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

Price To Earnings Ratio

PE vs Industry: AMWAY is poor value based on its Price-To-Earnings Ratio (22.9x) compared to the Asian Online Retail industry average (18.3x).

PE vs Market: AMWAY is poor value based on its Price-To-Earnings Ratio (22.9x) compared to the MY market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: AMWAY is poor value based on its PEG Ratio (1.2x)

Price to Book Ratio

PB vs Industry: AMWAY is overvalued based on its Price-To-Book Ratio (3.9x) compared to the XA Online Retail industry average (2.2x).

Future Growth

How is Amway (Malaysia) Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

18.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMWAY's forecast earnings growth (18.4% per year) is above the savings rate (3.6%).

Earnings vs Market: AMWAY's earnings (18.4% per year) are forecast to grow faster than the MY market (10.6% per year).

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

Revenue vs Market: AMWAY's revenue (2.5% per year) is forecast to grow slower than the MY market (6.5% per year).

High Growth Revenue: AMWAY's revenue (2.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AMWAY's Return on Equity is forecast to be high in 3 years time (26.2%)

Past Performance

How has Amway (Malaysia) Holdings Berhad performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AMWAY has high quality earnings.

Growing Profit Margin: AMWAY's current net profit margins (2.5%) are lower than last year (4.1%).

Past Earnings Growth Analysis

Earnings Trend: AMWAY's earnings have declined by 2.3% per year over the past 5 years.

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

Earnings vs Industry: AMWAY had negative earnings growth (-21.6%) over the past year, making it difficult to compare to the Online Retail industry average (14.7%).

Return on Equity

High ROE: AMWAY's Return on Equity (17%) is considered low.

Financial Health

How is Amway (Malaysia) Holdings Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: AMWAY's short term assets (MYR412.7M) exceed its short term liabilities (MYR314.3M).

Long Term Liabilities: AMWAY's short term assets (MYR412.7M) exceed its long term liabilities (MYR6.3M).

Debt to Equity History and Analysis

Debt Level: AMWAY has more cash than its total debt.

Reducing Debt: AMWAY's debt to equity ratio has reduced from 2.9% to 0.06% over the past 5 years.

Debt Coverage: AMWAY's debt is well covered by operating cash flow (85560.9%).

Interest Coverage: AMWAY earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Amway (Malaysia) Holdings Berhad current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

4.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AMWAY's dividend (4.68%) is higher than the bottom 25% of dividend payers in the MY market (1.86%).

High Dividend: AMWAY's dividend (4.68%) is in the top 25% of dividend payers in the MY market (4.66%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (89.4%), AMWAY's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.6%), AMWAY's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.5yrs

Average management tenure

CEO

Mike Duong (47 yo)

4yrs

Tenure

Mr. Michael Jonathan Duong, also known as Mike, has been Executive Director of Amway (Malaysia) Holdings Berhad since January 1, 2017 and also its Managing Director since May 01, 2018. On 1 May 2018, he we...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Mike's total compensation is reasonable compared to companies of similar size in the MY market.

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

Leadership Team

Experienced Management: AMWAY's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: AMWAY's board of directors are considered experienced (7 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	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31