Parkson Holdings Berhad (KLSE:PARKSON) - Share price, News & Analysis

Q: What is the Fair Price of PARKSON when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PARKSON (MYR0.17) is trading below our estimate of [[fair value]] (MYR30.89)

PARKSON fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

PARKSON Stock Overview

Parkson Holdings Berhad, an investment holding company, operates and manages department stores under the Parkson and Centro brands.

Rewards

Trading at 99.5% below our estimate of its fair value

Risk Analysis

Earnings have declined by 18.5% per year over past 5 years

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (MYR190M)

Parkson Holdings Berhad Competitors

Malayan United Industries Berhad

KLSE:MUIIND

RM176.0m

Yoong Onn Corporation Berhad

KLSE:YOCB

RM171.3m

Lim Seong Hai Capital Berhad

KLSE:LSH

RM160.2m

Marco Holdings Berhad

KLSE:MARCO

RM163.4m

Price History & Performance

Summary of all time highs, changes and price drops for Parkson Holdings Berhad
Historical stock prices
Current Share Price	RM0.17
52 Week High	RM0.26
52 Week Low	RM0.14
Beta	1.46
1 Month Change	13.79%
3 Month Change	-2.94%
1 Year Change	-15.38%
3 Year Change	-32.65%
5 Year Change	-69.16%
Change since IPO	-99.03%

Recent News & Updates

Jun 03

Parkson Holdings Berhad (KLSE:PARKSON) Is Looking To Continue Growing Its Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Shareholder Returns

	PARKSON	MY Multiline Retail	MY Market
7D	3.1%	-0.2%	-0.2%
1Y	-15.4%	-6.0%	-3.8%

Return vs Industry: PARKSON underperformed the MY Multiline Retail industry which returned -5.8% over the past year.

Return vs Market: PARKSON underperformed the MY Market which returned -3.1% over the past year.

Price Volatility

Is PARKSON's price volatile compared to industry and market?
PARKSON volatility
PARKSON Average Weekly Movement	8.4%
Multiline Retail Industry Average Movement	4.9%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.8%

Stable Share Price: PARKSON is more volatile than 75% of MY stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PARKSON's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of MY stocks.

About the Company

Founded	Employees	CEO	Website
1982	n/a	William Cheng	https://www.lion.com.my/parkson

Parkson Holdings Berhad, an investment holding company, operates and manages department stores under the Parkson and Centro brands. The company operates in two segments, Retailing and Others. Its stores offer various brands of fashion and lifestyle related merchandise, including fashion and apparel, cosmetics and accessories, household and electrical products, and groceries and perishables for the young and contemporary market segment.

Parkson Holdings Berhad Fundamentals Summary

How do Parkson Holdings Berhad's earnings and revenue compare to its market cap?
PARKSON fundamental statistics
Market Cap	RM189.57m
Earnings (TTM)	-RM86.38m
Revenue (TTM)	RM3.55b

0.1x

P/S Ratio

-2.2x

P/E Ratio

Is PARKSON overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PARKSON income statement (TTM)
Revenue	RM3.55b
Cost of Revenue	RM1.68b
Gross Profit	RM1.88b
Other Expenses	RM1.96b
Earnings	-RM86.38m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.075
Gross Margin	52.80%
Net Profit Margin	-2.43%
Debt/Equity Ratio	48.7%

How did PARKSON perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PARKSON undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PARKSON?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PARKSON. This is calculated by dividing PARKSON's market cap by their current preferred multiple.
What is PARKSON's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM189.57m

PARKSON key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	10.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PARKSON's PS Ratio compare to its peers?

PARKSON PS Ratio vs Peers

The above table shows the PS ratio for PARKSON vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.1x
MUIIND Malayan United Industries Berhad	0.7x	n/a	RM176.0m
YOCB Yoong Onn Corporation Berhad	0.9x	n/a	RM171.3m
LSH Lim Seong Hai Capital Berhad	1.8x	n/a	RM160.2m
MARCO Marco Holdings Berhad	1x	n/a	RM163.4m
PARKSON Parkson Holdings Berhad	0.05x	n/a	RM189.6m

Price-To-Sales vs Peers: PARKSON is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (1.1x).

Price to Earnings Ratio vs Industry

How does PARKSON's PE Ratio compare vs other companies in the Asian Multiline Retail Industry?

Price-To-Sales vs Industry: PARKSON is good value based on its Price-To-Sales Ratio (0.1x) compared to the Asian Multiline Retail industry average (0.9x)

Price to Sales Ratio vs Fair Ratio

What is PARKSON's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PARKSON PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.05x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PARKSON's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of PARKSON when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PARKSON (MYR0.17) is trading below our estimate of fair value (MYR30.89)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

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

18.0%

Forecasted Retail 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 Parkson Holdings 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.

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Examine whether Parkson Holdings Berhad is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Parkson Holdings Berhad performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-18.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PARKSON is currently unprofitable.

Growing Profit Margin: PARKSON is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PARKSON is unprofitable, and losses have increased over the past 5 years at a rate of 18.5% per year.

Accelerating Growth: Unable to compare PARKSON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PARKSON is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (-11.3%).

Return on Equity

High ROE: PARKSON has a negative Return on Equity (-3.68%), as it is currently unprofitable.

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Financial Health

How is Parkson Holdings Berhad's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PARKSON's short term assets (MYR2.2B) do not cover its short term liabilities (MYR3.7B).

Long Term Liabilities: PARKSON's short term assets (MYR2.2B) do not cover its long term liabilities (MYR3.0B).

Debt to Equity History and Analysis

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

Reducing Debt: PARKSON's debt to equity ratio has reduced from 66.3% to 48.7% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PARKSON has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PARKSON is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.8% per year.

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Dividend

What is Parkson 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
Cash Flow Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PARKSON has not reported any payouts.

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Management

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

7.0yrs

Average management tenure

CEO

William Cheng (79 yo)

16yrs

Tenure

RM203,060

Compensation

Mr. Heng Jem Cheng, also known as William, serves as Executive Director and Managing Director at Lion Industries Corporation Berhad from May 26, 2022. Previously he served as Chairman and Managing Director...

CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD45.59K) is below average for companies of similar size in the MY market ($USD111.82K).

Compensation vs Earnings: William's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: PARKSON's management team is seasoned and experienced (7 years average tenure).

Board Members

Experienced Board: PARKSON's board of directors are considered experienced (8.3 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 6%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31