Willowglen MSC Berhad (KLSE:WILLOW) - Share price, News & Analysis

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

WILLOW (MYR0.37) is trading above our estimate of [[fair value]] (MYR0.27)

WILLOW fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	3/6

WILLOW Stock Overview

Rewards

Price-To-Earnings ratio (10.9x) is below the MY market (14.4x)

Risk Analysis

Earnings have declined by 2.9% per year over past 5 years

Dividend of 4.11% is not well covered by earnings

Does not have a meaningful market cap (MYR177M)

Willowglen MSC Berhad Competitors

Rexit Berhad

KLSE:REXIT

RM131.6m

Kronologi Asia Berhad

KLSE:KRONO

RM373.5m

Censof Holdings Berhad

KLSE:CENSOF

RM168.4m

IFCA MSC Berhad

KLSE:IFCAMSC

RM169.5m

Price History & Performance

Summary of all time highs, changes and price drops for Willowglen MSC Berhad
Historical stock prices
Current Share Price	RM0.36
52 Week High	RM0.45
52 Week Low	RM0.34
Beta	0.66
1 Month Change	4.29%
3 Month Change	-2.67%
1 Year Change	-15.12%
3 Year Change	-9.88%
5 Year Change	-52.60%
Change since IPO	89.61%

Recent News & Updates

Apr 19

Willowglen MSC Berhad (KLSE:WILLOW) Will Pay A Dividend Of RM0.015

Willowglen MSC Berhad's ( KLSE:WILLOW ) investors are due to receive a payment of RM0.015 per share on 18th of May...

Feb 27

Willowglen MSC Berhad (KLSE:WILLOW) Has Affirmed Its Dividend Of RM0.015

Willowglen MSC Berhad's ( KLSE:WILLOW ) investors are due to receive a payment of RM0.015 per share on 18th of May...

Shareholder Returns

	WILLOW	MY Software	MY Market
7D	0%	-0.02%	0.2%
1Y	-15.1%	-35.9%	-4.1%

Return vs Industry: WILLOW exceeded the MY Software industry which returned -36.5% over the past year.

Return vs Market: WILLOW underperformed the MY Market which returned -3.8% over the past year.

Price Volatility

Is WILLOW's price volatile compared to industry and market?
WILLOW volatility
WILLOW Average Weekly Movement	3.2%
Software Industry Average Movement	7.2%
Market Average Movement	5.6%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.7%

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

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

About the Company

Founded	Employees	CEO	Website
1972	n/a	Ah Chiew Wong	https://www.willowglen.com.my

Willowglen MSC Berhad engages in the research, design, development, engineering, supply, sale, implementation, and maintenance of computer-based control systems and integrated monitoring systems in Malaysia, Singapore, Indonesia, and internationally. The company provides integrated control and supervisory system solutions; and integrated monitoring systems, such as IP megapixel CCTV, barrier gate, long range reader, visitor management, perimeter intrusion detection, home alarm/home automation, public address, SMATV, video/audio, fiber to the home, and private automatic branch exchange telephone systems, as well as card access, lift access, vehicle access, and alarm monitoring systems. It also offers intelligent transport systems; and industrial internet of things solutions.

Willowglen MSC Berhad Fundamentals Summary

How do Willowglen MSC Berhad's earnings and revenue compare to its market cap?
WILLOW fundamental statistics
Market Cap	RM176.98m
Earnings (TTM)	RM16.17m
Revenue (TTM)	RM177.24m

10.9x

P/E Ratio

1.0x

P/S Ratio

Is WILLOW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WILLOW income statement (TTM)
Revenue	RM177.24m
Cost of Revenue	RM128.45m
Gross Profit	RM48.79m
Other Expenses	RM32.62m
Earnings	RM16.17m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.033
Gross Margin	27.53%
Net Profit Margin	9.12%
Debt/Equity Ratio	0%

How did WILLOW perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

45%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 WILLOW?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for WILLOW. This is calculated by dividing WILLOW's market cap by their current preferred multiple.
What is WILLOW's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM176.98m

WILLOW 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	0.6x
Enterprise Value/EBITDA	5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does WILLOW's PE Ratio compare to its peers?

WILLOW PE Ratio vs Peers

The above table shows the PE ratio for WILLOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16x
REXIT Rexit Berhad	14.5x	8.2%	RM131.6m
KRONO Kronologi Asia Berhad	17.1x	13.7%	RM373.5m
CENSOF Censof Holdings Berhad	9.1x	n/a	RM168.4m
IFCAMSC IFCA MSC Berhad	23.1x	n/a	RM169.5m
WILLOW Willowglen MSC Berhad	10.9x	n/a	RM177.0m

Price-To-Earnings vs Peers: WILLOW is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (16x).

Price to Earnings Ratio vs Industry

How does WILLOW's PE Ratio compare vs other companies in the Asian Software Industry?

Price-To-Earnings vs Industry: WILLOW is good value based on its Price-To-Earnings Ratio (10.9x) compared to the MY Software industry average (19.8x)

Price to Earnings Ratio vs Fair Ratio

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

WILLOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.9x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: WILLOW (MYR0.37) is trading above our estimate of fair value (MYR0.27)

Significantly Below Fair Value: WILLOW is trading above our estimate of fair value.

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 Willowglen MSC 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

31.6%

Forecasted Software 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 Willowglen MSC 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 Willowglen MSC Berhad's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Willowglen MSC 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

-2.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WILLOW has high quality earnings.

Growing Profit Margin: WILLOW's current net profit margins (9.1%) are lower than last year (11.3%).

Past Earnings Growth Analysis

Earnings Trend: WILLOW's earnings have declined by 2.9% per year over the past 5 years.

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

Earnings vs Industry: WILLOW had negative earnings growth (-7.3%) over the past year, making it difficult to compare to the Software industry average (-18.1%).

Return on Equity

High ROE: WILLOW's Return on Equity (8.6%) is considered low.

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Financial Health

How is Willowglen MSC 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: WILLOW's short term assets (MYR174.1M) exceed its short term liabilities (MYR26.7M).

Long Term Liabilities: WILLOW's short term assets (MYR174.1M) exceed its long term liabilities (MYR118.0K).

Debt to Equity History and Analysis

Debt Level: WILLOW is debt free.

Reducing Debt: WILLOW has not had any debt for past 5 years.

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

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

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WILLOW's dividend (4.11%) is higher than the bottom 25% of dividend payers in the MY market (2%).

High Dividend: WILLOW's dividend (4.11%) is low compared to the top 25% of dividend payers in the MY market (4.86%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45%), WILLOW's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (542.4%), WILLOW's dividend payments are not well covered by cash flows.

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Management

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

9.3yrs

Average management tenure

CEO

Ah Chiew Wong (74 yo)

9yrs

Tenure

RM31,000

Compensation

Mr. Ah Chiew Wong has been Group Managing Director of Willowglen MSC Bhd since August 1, 2013. Mr. Wong served as Managing Director of PJ Development Holdings Bhd. until July 31, 2013.Mr. Wong served as a...

CEO Compensation Analysis

Compensation vs Market: Ah Chiew's total compensation ($USD6.97K) is below average for companies of similar size in the MY market ($USD111.82K).

Compensation vs Earnings: Ah Chiew's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: WILLOW's management team is seasoned and experienced (9.3 years average tenure).

Board Members

Experienced Board: WILLOW's board of directors are considered experienced (9 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	2022/08/09 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31