MBM Resources Berhad (KLSE:MBMR) - Share price, News & Analysis

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

MBMR Stock Overview

MBM Resources Berhad, an investment holding company, engages in motor trading, auto parts manufacturing, and property development businesses primarily in Malaysia.

Rewards

Trading at 18.8% below our estimate of its fair value

Earnings are forecast to grow 9.5% per year

Earnings have grown 30.4% per year over the past 5 years

Risk Analysis

Dividend of 5.03% is not well covered by earnings

MBM Resources Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MBM Resources Berhad
Historical stock prices
Current Share Price	RM3.18
52 Week High	RM3.40
52 Week Low	RM3.01
Beta	0.54
1 Month Change	-3.64%
3 Month Change	2.25%
1 Year Change	-1.85%
3 Year Change	13.57%
5 Year Change	30.86%
Change since IPO	48.49%

Recent News & Updates

May 01

MBM Resources Berhad's (KLSE:MBMR) Shareholders Will Receive A Smaller Dividend Than Last Year

MBM Resources Berhad ( KLSE:MBMR ) is reducing its dividend to RM0.06 on the 30th of June. The yield is still above the...

Shareholder Returns

	MBMR	MY Retail Distributors	MY Market
7D	-0.6%	0.04%	0.08%
1Y	-1.9%	-3.0%	-2.8%

Return vs Industry: MBMR exceeded the MY Retail Distributors industry which returned -3% over the past year.

Return vs Market: MBMR matched the MY Market which returned -2.8% over the past year.

Price Volatility

Is MBMR's price volatile compared to industry and market?
MBMR volatility
MBMR Average Weekly Movement	3.5%
Retail Distributors Industry Average Movement	6.0%
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: MBMR is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

Founded	Employees	CEO	Website
1994	n/a	Muhammad Fateh Bin Abdullah	https://www.mbmr.com.my

MBM Resources Berhad, an investment holding company, engages in motor trading, auto parts manufacturing, and property development businesses primarily in Malaysia. It markets and distributes motor vehicles and spare parts, as well as offers related ancillary services. The company also manufactures and sells automotive parts and components, such as steel and alloy wheels, and discs; safety restraint products, including wheels, airbags, seatbelts, and steering wheels; noise, vibration, and harshness products; and heat reduction materials and insulator parts, as well as provides tire assembly services.

MBM Resources Berhad Fundamentals Summary

How do MBM Resources Berhad's earnings and revenue compare to its market cap?
MBMR fundamental statistics
Market Cap	RM1.24b
Earnings (TTM)	RM171.38m
Revenue (TTM)	RM1.53b

7.3x

P/E Ratio

0.8x

P/S Ratio

Is MBMR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MBMR income statement (TTM)
Revenue	RM1.53b
Cost of Revenue	RM1.39b
Gross Profit	RM136.39m
Other Expenses	-RM34.99m
Earnings	RM171.38m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.44
Gross Margin	8.92%
Net Profit Margin	11.21%
Debt/Equity Ratio	1.1%

How did MBMR perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

36%

Payout Ratio

Does MBMR pay a reliable dividends?

See MBMR dividend history and benchmarks

When do you need to buy MBMR by to receive an upcoming dividend?
MBM Resources Berhad dividend dates
Ex Dividend Date	Jun 15 2022
Dividend Pay Date	Jun 30 2022
Days until Ex dividend	26 days
Days until Dividend pay date	41 days

Does MBMR pay a reliable dividends?

See MBMR dividend history and benchmarks

Valuation

Is MBM Resources 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

18.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MBMR (MYR3.18) is trading below our estimate of fair value (MYR3.92)

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

Price To Earnings Ratio

PE vs Industry: MBMR is good value based on its PE Ratio (7.3x) compared to the MY Retail Distributors industry average (9.6x).

PE vs Market: MBMR is good value based on its PE Ratio (7.3x) compared to the MY market (15.4x).

Price to Earnings Growth Ratio

PEG Ratio: MBMR is good value based on its PEG Ratio (0.8x)

Price to Book Ratio

PB vs Industry: MBMR's PB Ratio (0.6x) is in line with the MY Retail Distributors industry average.

Future Growth

How is MBM Resources Berhad forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

9.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBMR's forecast earnings growth (9.5% per year) is above the savings rate (3.6%).

Earnings vs Market: MBMR's earnings (9.5% per year) are forecast to grow slower than the MY market (10.9% per year).

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

Revenue vs Market: MBMR's revenue (9.4% per year) is forecast to grow faster than the MY market (6.7% per year).

High Growth Revenue: MBMR's revenue (9.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MBMR's Return on Equity is forecast to be low in 3 years time (10.2%).

Past Performance

How has MBM Resources Berhad performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

30.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MBMR has high quality earnings.

Growing Profit Margin: MBMR's current net profit margins (11.2%) are higher than last year (9.3%).

Past Earnings Growth Analysis

Earnings Trend: MBMR's earnings have grown significantly by 30.4% per year over the past 5 years.

Accelerating Growth: MBMR's earnings growth over the past year (2.7%) is below its 5-year average (30.4% per year).

Earnings vs Industry: MBMR earnings growth over the past year (2.7%) underperformed the Retail Distributors industry 13%.

Return on Equity

High ROE: MBMR's Return on Equity (8.9%) is considered low.

Financial Health

How is MBM Resources 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: MBMR's short term assets (MYR551.2M) exceed its short term liabilities (MYR164.4M).

Long Term Liabilities: MBMR's short term assets (MYR551.2M) exceed its long term liabilities (MYR8.4M).

Debt to Equity History and Analysis

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

Reducing Debt: MBMR's debt to equity ratio has reduced from 19.7% to 1.1% over the past 5 years.

Debt Coverage: MBMR's debt is well covered by operating cash flow (40%).

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

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

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

5.03%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: MBMR's dividend (5.03%) is higher than the bottom 25% of dividend payers in the MY market (1.85%).

High Dividend: MBMR's dividend (5.03%) is in the top 25% of dividend payers in the MY market (4.61%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.5%), MBMR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (16903.2%), MBMR's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.8yrs

Average management tenure

CEO

Muhammad Fateh Bin Abdullah (51 yo)

1.25yrs

Tenure

Mr. Muhammad Fateh Teh Bin Abdullah serves as President and Chief Executive Officer at MBM Resources Berhad since February 08, 2021. He served as Head of Automotive Distribution at DRB-HICOM Bhd. since 201...

Leadership Team

Experienced Management: MBMR's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: MBMR's board of directors are considered experienced (3.8 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31