FM Global Logistics Holdings Berhad (KLSE:FM) - Share price, News & Analysis

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

FM Stock Overview

Rewards

Trading at 60.1% below our estimate of its fair value

Earnings have grown 9.4% per year over the past 5 years

Risk Analysis

Dividend of 5.77% is not well covered by earnings

Does not have a meaningful market cap (MYR290M)

FM Global Logistics Holdings Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for FM Global Logistics Holdings Berhad
Historical stock prices
Current Share Price	RM0.52
52 Week High	RM1.15
52 Week Low	RM0.51
Beta	1.27
1 Month Change	-7.14%
3 Month Change	-25.71%
1 Year Change	-32.47%
3 Year Change	73.33%
5 Year Change	18.18%
Change since IPO	343.50%

Recent News & Updates

May 11

These 4 Measures Indicate That FM Global Logistics Holdings Berhad (KLSE:FM) Is Using Debt Safely

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	FM	MY Shipping	MY Market
7D	-1.0%	-3.7%	-2.7%
1Y	-32.5%	1.5%	-9.2%

Return vs Industry: FM underperformed the MY Shipping industry which returned 1.5% over the past year.

Return vs Market: FM underperformed the MY Market which returned -9.2% over the past year.

Price Volatility

Is FM's price volatile compared to industry and market?
FM volatility
FM Average Weekly Movement	5.6%
Shipping Industry Average Movement	5.6%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.3%
10% least volatile stocks in MY Market	2.9%

Stable Share Price: FM is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	1,573	Chong Chew	https://www.fmgloballogistics.com

FM Global Logistics Holdings Berhad provides international multimodal freight services in Malaysia, Australia, Indonesia, Thailand, the United Arab Emirates, Vietnam, India, Sri Lanka, the United States, the Philippines, and Singapore. It offers sea freight services, including export and import freight services for less than container load and full container load shipments; operates tugs and barges; and manages airfreight inbound and outbound shipments. The company also provides container haulage and conventional trucking, cross-border trucking, customs brokerage, and 3PL and warehousing services, as well as logistic solutions for e-commerce business.

FM Global Logistics Holdings Berhad Fundamentals Summary

How do FM Global Logistics Holdings Berhad's earnings and revenue compare to its market cap?
FM fundamental statistics
Market Cap	RM290.39m
Earnings (TTM)	RM41.61m
Revenue (TTM)	RM1.05b

7.0x

P/E Ratio

0.3x

P/S Ratio

Is FM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FM income statement (TTM)
Revenue	RM1.05b
Cost of Revenue	RM833.10m
Gross Profit	RM214.31m
Other Expenses	RM172.70m
Earnings	RM41.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.074
Gross Margin	20.46%
Net Profit Margin	3.97%
Debt/Equity Ratio	39.8%

How did FM perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

40%

Payout Ratio

Does FM pay a reliable dividends?

See FM dividend history and benchmarks

When do you need to buy FM by to receive an upcoming dividend?
FM Global Logistics Holdings Berhad dividend dates
Ex Dividend Date	Jul 07 2022
Dividend Pay Date	Jul 28 2022
Days until Ex dividend	12 days
Days until Dividend pay date	33 days

Does FM pay a reliable dividends?

See FM dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is FM 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-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FM. This is calculated by dividing FM's market cap by their current preferred multiple.
What is FM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM290.39m

FM 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	0.4x
Enterprise Value/EBITDA	6x
PEG Ratio	4.4x

Price to Earnings Ratio vs Peers

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

FM PE Ratio vs Peers

The above table shows the PE ratio for FM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	7.6x

Forward PE

Price-To-Earnings vs Peers: FM is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (7.6x).

Price to Earnings Ratio vs Industry

How does FM's PE Ratio compare vs other companies in the Shipping Industry?

Price-To-Earnings vs Industry: FM is expensive based on its Price-To-Earnings Ratio (7x) compared to the MY Shipping industry average (6.9x)

Price to Earnings Ratio vs Fair Ratio

What is FM'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.

FM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7x
Fair PE Ratio	9.3x

Price-To-Earnings vs Fair Ratio: FM is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).

Share Price vs Fair Value

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

Below Fair Value: FM (MYR0.52) is trading below our estimate of fair value (MYR1.3)

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

Price to Earnings Growth Ratio

PEG Ratio: FM is poor value based on its PEG Ratio (4.4x)

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Future Growth

How is FM Global Logistics Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 2 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

1.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FM's forecast earnings growth (1.6% per year) is below the savings rate (3.6%).

Earnings vs Market: FM's earnings (1.6% per year) are forecast to grow slower than the MY market (9.8% per year).

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

Revenue vs Market: FM's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: FM's revenue is forecast to decline over the next 3 years (-1.7% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FM's Return on Equity is forecast to be low in 3 years time (11.5%).

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Past Performance

How has FM Global Logistics Holdings Berhad performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

9.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FM has high quality earnings.

Growing Profit Margin: FM's current net profit margins (4%) are higher than last year (3%).

Past Earnings Growth Analysis

Earnings Trend: FM's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: FM's earnings growth over the past year (112.7%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: FM earnings growth over the past year (112.7%) underperformed the Shipping industry 154.1%.

Return on Equity

High ROE: FM's Return on Equity (12.2%) is considered low.

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Financial Health

How is FM Global Logistics 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
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FM's short term assets (MYR353.4M) exceed its short term liabilities (MYR193.6M).

Long Term Liabilities: FM's short term assets (MYR353.4M) exceed its long term liabilities (MYR131.5M).

Debt to Equity History and Analysis

Debt Level: FM's net debt to equity ratio (19.7%) is considered satisfactory.

Reducing Debt: FM's debt to equity ratio has increased from 27.9% to 39.8% over the past 5 years.

Debt Coverage: FM's debt is not well covered by operating cash flow (1.2%).

Interest Coverage: FM's interest payments on its debt are well covered by EBIT (12.9x coverage).

Balance Sheet

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Dividend

What is FM Global Logistics Holdings 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

5.77%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: FM's dividend (5.77%) is higher than the bottom 25% of dividend payers in the MY market (2.14%).

High Dividend: FM's dividend (5.77%) is in the top 25% of dividend payers in the MY market (4.98%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.3%), FM's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: FM is paying a dividend but the company has no free cash flows.

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Management

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

5.5yrs

Average management tenure

CEO

Chong Chew (60 yo)

no data

Tenure

RM59,000

Compensation

Mr. Chew Chong Keat is a Co-founder of FM Global Logistics Holdings Berhad (formerly known as Freight Management Holdings Bhd) and serves as its Group Managing Director. Mr. Chew was instrumental in expand...

Leadership Team

Experienced Management: FM's management team is seasoned and experienced (5.5 years average tenure).

Board Members

Experienced Board: FM's board of directors are considered experienced (9.9 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	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30