KLSE:REDTONE

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REDtone Digital Berhad

Market Cap

RM340.1m

Last Updated

2021/08/05 15:35 UTC

Data Sources

Company Financials

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has REDtone Digital Berhad's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REDTONE is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: REDTONE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

REDTONE

-2.7%

MY Telecom

-1.0%

MY Market


1 Year Return

10.0%

REDTONE

41.5%

MY Telecom

-1.6%

MY Market

Return vs Industry: REDTONE underperformed the MY Telecom industry which returned 41.5% over the past year.

Return vs Market: REDTONE exceeded the MY Market which returned -1.6% over the past year.


Shareholder returns

REDTONEIndustryMarket
7 Day-1.1%-2.7%-1.0%
30 Day0%-3.4%-1.4%
90 Day-9.3%1.3%-5.3%
1 Year15.3%10.0%45.5%41.5%2.1%-1.6%
3 Year78.5%66.0%66.8%56.2%-4.9%-13.9%
5 Year24.5%15.8%13.5%-0.4%7.8%-10.3%

Long-Term Price Volatility Vs. Market

How volatile is REDtone Digital Berhad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REDTONE (MYR0.44) is trading below our estimate of fair value (MYR3.37)

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


Price To Earnings Ratio

PE vs Industry: REDTONE is poor value based on its PE Ratio (32x) compared to the MY Telecom industry average (24.2x).

PE vs Market: REDTONE is poor value based on its PE Ratio (32x) compared to the MY market (17x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate REDTONE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: REDTONE is good value based on its PB Ratio (2x) compared to the MY Telecom industry average (2.9x).


Future Growth

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

10.8%

Forecasted Telecom 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 REDtone Digital 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.


Past Performance

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

55.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REDTONE has a large one-off loss of MYR24.6M impacting its March 31 2021 financial results.

Growing Profit Margin: REDTONE's current net profit margins (6.7%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: REDTONE has become profitable over the past 5 years, growing earnings by 55.6% per year.

Accelerating Growth: REDTONE's earnings growth over the past year (9%) is below its 5-year average (55.6% per year).

Earnings vs Industry: REDTONE earnings growth over the past year (9%) exceeded the Telecom industry 0.6%.


Return on Equity

High ROE: REDTONE's Return on Equity (7.2%) is considered low.


Financial Health

How is REDtone Digital Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: REDTONE's short term assets (MYR207.9M) exceed its short term liabilities (MYR77.8M).

Long Term Liabilities: REDTONE's short term assets (MYR207.9M) exceed its long term liabilities (MYR4.3M).


Debt to Equity History and Analysis

Debt Level: REDTONE's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: REDTONE's debt to equity ratio has reduced from 15.2% to 0.8% over the past 5 years.

Debt Coverage: REDTONE's debt is well covered by operating cash flow (4435.8%).

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


Balance Sheet


Dividend

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

4.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REDTONE's dividend (4.09%) is higher than the bottom 25% of dividend payers in the MY market (1.51%).

High Dividend: REDTONE's dividend (4.09%) is low compared to the top 25% of dividend payers in the MY market (4.22%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (130.8%), REDTONE's dividend payments are not 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?

7.2yrs

Average management tenure


CEO

Bik Lau (51 yo)

10.08yrs

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 (7.2 years average tenure).


Board Members

Experienced Board: REDTONE's board of directors are considered experienced (6.5 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 company bio, 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: RM340.099m
  • Shares outstanding: 772.95m
  • Website: https://www.redtone.com

Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 15:35
End of Day Share Price2021/08/05 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


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.