Beshom Holdings Berhad (KLSE:BESHOM) - Share price, News & Analysis

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

BESHOM Stock Overview

Beshom Holdings Berhad, an investment holding company, engages in wholesaling and retailing herbal medicines and healthcare products in Malaysia.

Rewards

Trading at 8.3% below our estimate of its fair value

Earnings are forecast to grow 18.23% per year

Risk Analysis

Dividend of 5.06% is not well covered by earnings

Shareholders have been diluted in the past year

Beshom Holdings Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Beshom Holdings Berhad
Historical stock prices
Current Share Price	RM1.58
52 Week High	RM2.15
52 Week Low	RM1.50
Beta	0.78
1 Month Change	-0.63%
3 Month Change	-10.73%
1 Year Change	-25.47%
3 Year Change	-34.17%
5 Year Change	-58.75%
Change since IPO	396.92%

Recent News & Updates

Mar 29

One Analyst Thinks Beshom Holdings Berhad's (KLSE:BESHOM) Revenues Are Under Threat

The analyst covering Beshom Holdings Berhad ( KLSE:BESHOM ) delivered a dose of negativity to shareholders today, by...

Shareholder Returns

	BESHOM	MY Online Retail	MY Market
7D	0.6%	0.9%	-0.5%
1Y	-25.5%	-44.4%	-3.4%

Return vs Industry: BESHOM exceeded the MY Online Retail industry which returned -41.9% over the past year.

Return vs Market: BESHOM underperformed the MY Market which returned -4.2% over the past year.

Price Volatility

Is BESHOM's price volatile compared to industry and market?
BESHOM volatility
BESHOM Average Weekly Movement	3.0%
Online Retail Industry Average Movement	7.7%
Market Average Movement	6.0%
10% most volatile stocks in MY Market	11.8%
10% least volatile stocks in MY Market	3.2%

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

Volatility Over Time: BESHOM's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1975	483	Keng Tan	https://www.beshom.com

Beshom Holdings Berhad, an investment holding company, engages in wholesaling and retailing herbal medicines and healthcare products in Malaysia. The company operates through three segments: Wholesale, Multi-Level Marketing, and Retail. It acts as a general importer, exporter, commission and insurance agent, and moneylender, as well as leases machinery and equipment.

Beshom Holdings Berhad Fundamentals Summary

How do Beshom Holdings Berhad's earnings and revenue compare to its market cap?
BESHOM fundamental statistics
Market Cap	RM474.16m
Earnings (TTM)	RM30.45m
Revenue (TTM)	RM231.07m

15.6x

P/E Ratio

2.1x

P/S Ratio

Is BESHOM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BESHOM income statement (TTM)
Revenue	RM231.07m
Cost of Revenue	RM137.79m
Gross Profit	RM93.28m
Other Expenses	RM62.83m
Earnings	RM30.45m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.10
Gross Margin	40.37%
Net Profit Margin	13.18%
Debt/Equity Ratio	0%

How did BESHOM perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

0%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

8.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BESHOM (MYR1.58) is trading below our estimate of fair value (MYR1.72)

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

Price To Earnings Ratio

PE vs Industry: BESHOM is good value based on its PE Ratio (15.6x) compared to the Asian Online Retail industry average (18.6x).

PE vs Market: BESHOM is poor value based on its PE Ratio (15.6x) compared to the MY market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: BESHOM is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: BESHOM is good value based on its PB Ratio (1.5x) compared to the XA Online Retail industry average (2.1x).

Future Growth

How is Beshom Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 2 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

18.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BESHOM's forecast earnings growth (18.2% per year) is above the savings rate (3.6%).

Earnings vs Market: BESHOM's earnings (18.2% per year) are forecast to grow faster than the MY market (10.8% per year).

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

Revenue vs Market: BESHOM's revenue (16.2% per year) is forecast to grow faster than the MY market (6.6% per year).

High Growth Revenue: BESHOM's revenue (16.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BESHOM's Return on Equity is forecast to be low in 3 years time (13.5%).

Past Performance

How has Beshom 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

-16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BESHOM has high quality earnings.

Growing Profit Margin: BESHOM's current net profit margins (13.2%) are lower than last year (15.8%).

Past Earnings Growth Analysis

Earnings Trend: BESHOM's earnings have declined by 16.8% per year over the past 5 years.

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

Earnings vs Industry: BESHOM had negative earnings growth (-25.4%) over the past year, making it difficult to compare to the Online Retail industry average (16%).

Return on Equity

High ROE: BESHOM's Return on Equity (9.6%) is considered low.

Financial Health

How is Beshom 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: BESHOM's short term assets (MYR219.3M) exceed its short term liabilities (MYR36.6M).

Long Term Liabilities: BESHOM's short term assets (MYR219.3M) exceed its long term liabilities (MYR2.8M).

Debt to Equity History and Analysis

Debt Level: BESHOM is debt free.

Reducing Debt: BESHOM has no debt compared to 5 years ago when its debt to equity ratio was 1.1%.

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

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

Balance Sheet

Dividend

What is Beshom 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

5.06%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BESHOM's dividend (5.06%) is higher than the bottom 25% of dividend payers in the MY market (1.85%).

High Dividend: BESHOM's dividend (5.06%) is in the top 25% of dividend payers in the MY market (4.62%)

Stability and Growth of Payments

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

Growing Dividend: BESHOM's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: Unable to calculate sustainability of dividends as BESHOM has not reported any payouts.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (71.2%), BESHOM's dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Retail industry.

Management

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

11.6yrs

Average management tenure

CEO

Keng Tan (45 yo)

6.25yrs

Tenure

RM1,043,656

Compensation

Mr. Keng Kang Tan has been the Group Managing Director of Beshom Holdings Berhad since February 1, 2016 and is its Non-Independent Executive Director since April 1, 2012. Mr. Tan served as the Chief Operat...

CEO Compensation Analysis

Compensation vs Market: Keng's total compensation ($USD237.84K) is above average for companies of similar size in the MY market ($USD119.06K).

Compensation vs Earnings: Keng's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: BESHOM's management team is seasoned and experienced (11.6 years average tenure).

Board Members

Experienced Board: BESHOM's board of directors are considered experienced (6.3 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 3.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/01/31
Annual Earnings	2021/04/30