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REDT

REDtone Digital BerhadKLSE:REDTONE Stock Report

Market Cap

RM328.5m

7D

-9.6%

1Y

14.9%

Updated

01 Dec, 2021

Data

Company Financials +
REDTONE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends2/6

REDTONE Stock Overview

REDtone Digital Berhad, an investment holding company, provides integrated telecommunications and digital infrastructure services to governments, enterprises, small and medium enterprises, and healthcare industries in Malaysia.

REDtone Digital Berhad Competitors

TIME dotCom Berhad

KLSE:TIMECOM

RM8.4b

Maxis Berhad

KLSE:MAXIS

RM34.8b

Telekom Malaysia Berhad

KLSE:TM

RM20.9b

MyKRIS International Berhad

KLSE:MYKRIS

RM135.0m

Price History & Performance

Summary of all time highs, changes and price drops for REDtone Digital Berhad
Historical stock prices
Current Share PriceRM0.42
52 Week HighRM0.74
52 Week LowRM0.32
Beta1.06
1 Month Change-36.09%
3 Month Change-3.41%
1 Year Change14.87%
3 Year Change112.50%
5 Year Change41.67%
Change since IPO-59.65%

Recent News & Updates

Sep 27
Does REDtone Digital Berhad (KLSE:REDTONE) Deserve A Spot On Your Watchlist?

Does REDtone Digital Berhad (KLSE:REDTONE) Deserve A Spot On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Apr 07
Is REDtone Digital Berhad (KLSE:REDTONE) At Risk Of Cutting Its Dividend?

Is REDtone Digital Berhad (KLSE:REDTONE) At Risk Of Cutting Its Dividend?

Is REDtone Digital Berhad ( KLSE:REDTONE ) a good dividend stock? How can we tell? Dividend paying companies with...

Shareholder Returns

REDTONEMY TelecomMY Market
7D-9.6%-0.4%-2.0%
1Y14.9%6.4%-4.1%

Return vs Industry: REDTONE exceeded the MY Telecom industry which returned 6.8% over the past year.

Return vs Market: REDTONE exceeded the MY Market which returned -3.2% over the past year.

Price Volatility

Is REDTONE's price volatile compared to industry and market?
REDTONE volatility
REDTONE Average Weekly Movement11.5%
Telecom Industry Average Movement6.3%
Market Average Movement5.6%
10% most volatile stocks in MY Market12.1%
10% least volatile stocks in MY Market2.7%

Stable Share Price: REDTONE is more volatile than 75% of MY stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: REDTONE's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of MY stocks.

About the Company

FoundedEmployeesCEOWebsite
1996n/aBik Lauhttps://www.redtone.com

REDtone Digital Berhad, an investment holding company, provides integrated telecommunications and digital infrastructure services to governments, enterprises, small and medium enterprises, and healthcare industries in Malaysia. The company offers telecommunication services, such as broadband and data, managed, and voice services. It also provides managed telecommunications network services, including WIFI and telco engineering; industry digital services comprising Internet of Things, flexicloud, healthcare, and data center and disaster recovery; and digital transformation services consisting of training programs.

REDtone Digital Berhad Fundamentals Summary

How do REDtone Digital Berhad's earnings and revenue compare to its market cap?
REDTONE fundamental statistics
Market CapRM328.50m
Earnings (TTM)RM28.66m
Revenue (TTM)RM176.99m

11.5x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REDTONE income statement (TTM)
RevenueRM176.99m
Cost of RevenueRM94.50m
Gross ProfitRM82.50m
ExpensesRM53.84m
EarningsRM28.66m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.037
Gross Margin46.61%
Net Profit Margin16.19%
Debt/Equity Ratio0.8%

How did REDTONE perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

49%

Payout Ratio

Valuation

Is REDtone Digital Berhad undervalued compared to its fair value and its price relative to the market?

11.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REDTONE (MYR0.43) is trading above our estimate of fair value (MYR0.18)

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


Price To Earnings Ratio

PE vs Industry: REDTONE is good value based on its PE Ratio (11.5x) compared to the MY Telecom industry average (19.1x).

PE vs Market: REDTONE is good value based on its PE Ratio (11.5x) compared to the MY market (15.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REDTONE is good value based on its PB Ratio (1.9x) compared to the MY Telecom industry average (2.6x).


Future Growth

How is REDtone Digital Berhad forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REDTONE's forecast earnings growth (9.4% per year) is above the savings rate (3.6%).

Earnings vs Market: REDTONE's earnings (9.4% per year) are forecast to grow slower than the MY market (10.7% per year).

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

Revenue vs Market: REDTONE's revenue (12.3% per year) is forecast to grow faster than the MY market (6.6% per year).

High Growth Revenue: REDTONE's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if REDTONE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has REDtone Digital Berhad performed over the past 5 years?

56.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REDTONE has high quality earnings.

Growing Profit Margin: REDTONE's current net profit margins (16.2%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: REDTONE has become profitable over the past 5 years, growing earnings by 56% per year.

Accelerating Growth: REDTONE's earnings growth over the past year (588.1%) exceeds its 5-year average (56% per year).

Earnings vs Industry: REDTONE earnings growth over the past year (588.1%) exceeded the Telecom industry 8.2%.


Return on Equity

High ROE: REDTONE's Return on Equity (17.8%) is considered low.


Financial Health

How is REDtone Digital Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: REDTONE's short term assets (MYR238.1M) exceed its short term liabilities (MYR101.9M).

Long Term Liabilities: REDTONE's short term assets (MYR238.1M) exceed its long term liabilities (MYR3.6M).


Debt to Equity History and Analysis

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

Reducing Debt: REDTONE's debt to equity ratio has reduced from 29.5% to 0.8% over the past 5 years.

Debt Coverage: REDTONE's debt is well covered by operating cash flow (2132%).

Interest Coverage: REDTONE's interest payments on its debt are well covered by EBIT (554x coverage).


Balance Sheet


Dividend

What is REDtone Digital Berhad current dividend yield, its reliability and sustainability?

4.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REDTONE's dividend (4.24%) is higher than the bottom 25% of dividend payers in the MY market (1.71%).

High Dividend: REDTONE's dividend (4.24%) is low compared to the top 25% of dividend payers in the MY market (4.55%).


Stability and Growth of Payments

Stable Dividend: REDTONE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: REDTONE's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), REDTONE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Bik Lau (51 yo)

10.33yrs

Tenure

Mr. Bik Soon Lau has been the Group Chief Executive Officer of REDtone International Bhd since July 08, 2011. Mr. Lau served as Chief Executive Officer of REDtone Telecommunications of REDtone Internationa...


CEO Compensation Analysis

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

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


Leadership Team

Experienced Management: REDTONE's management team is seasoned and experienced (7.4 years average tenure).


Board Members

Experienced Board: REDTONE's board of directors are considered experienced (6.8 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.


Top Shareholders

Company Information

REDtone Digital Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: REDtone Digital Berhad
  • Ticker: REDTONE
  • Exchange: KLSE
  • Founded: 1996
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: RM328.505m
  • Shares outstanding: 772.95m
  • Website: https://www.redtone.com

Location

  • REDtone Digital Berhad
  • IOI Business Park
  • 5th Floor
  • Puchong
  • Selangor
  • 47100
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 15:41
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.