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PETG

PETRONAS Gas BerhadKLSE:PETGAS Stock Report

Market Cap

RM33.8b

7D

1.8%

1Y

6.9%

Updated

15 Oct, 2021

Data

Company Financials +
PETGAS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends5/6

PETGAS Overview

PETRONAS Gas Berhad operates as a gas infrastructure and utilities company in Malaysia.

PETRONAS Gas Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PETRONAS Gas Berhad
Historical stock prices
Current Share PriceRM17.10
52 Week HighRM15.24
52 Week LowRM18.16
Beta0.22
1 Month Change1.30%
3 Month Change9.48%
1 Year Change6.88%
3 Year Change-6.66%
5 Year Change-21.34%
Change since IPO96.55%

Recent News & Updates

Oct 12
PETRONAS Gas Berhad (KLSE:PETGAS) Has More To Do To Multiply In Value Going Forward

PETRONAS Gas Berhad (KLSE:PETGAS) Has More To Do To Multiply In Value Going Forward

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

Aug 25
PETRONAS Gas Berhad (KLSE:PETGAS) Has Announced That Its Dividend Will Be Reduced To RM0.16

PETRONAS Gas Berhad (KLSE:PETGAS) Has Announced That Its Dividend Will Be Reduced To RM0.16

PETRONAS Gas Berhad ( KLSE:PETGAS ) is reducing its dividend to RM0.16 on the 20th of September. However, the dividend...

Aug 18
We Think PETRONAS Gas Berhad (KLSE:PETGAS) Can Manage Its Debt With Ease

We Think PETRONAS Gas Berhad (KLSE:PETGAS) Can Manage Its Debt With Ease

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Jul 30
Estimating The Intrinsic Value Of PETRONAS Gas Berhad (KLSE:PETGAS)

Estimating The Intrinsic Value Of PETRONAS Gas Berhad (KLSE:PETGAS)

Today we will run through one way of estimating the intrinsic value of PETRONAS Gas Berhad ( KLSE:PETGAS ) by...

Shareholder Returns

PETGASMY Gas UtilitiesMY Market
7D1.8%-2.6%1.7%
1Y6.9%29.3%8.0%

Return vs Industry: PETGAS underperformed the MY Gas Utilities industry which returned 29.3% over the past year.

Return vs Market: PETGAS underperformed the MY Market which returned 8% over the past year.

Price Volatility

Is PETGAS's price volatile compared to industry and market?
PETGAS volatility
PETGAS Beta0.22
Industry Beta0.68
Market Beta1

Stable Share Price: PETGAS is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PETGAS's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19831,829Abdul Bin Othmanhttps://www.petronasgas.com

PETRONAS Gas Berhad operates as a gas infrastructure and utilities company in Malaysia. The company engages in separating natural gas into components; and storing, transporting, distributing, and selling such components to industrial utilities. It operates through four segments: Gas Processing, Gas Transportation, Regasification, and Utilities.

PETRONAS Gas Berhad Fundamentals Summary

How do PETRONAS Gas Berhad's earnings and revenue compare to its market cap?
PETGAS fundamental statistics
Market CapRM33.84b
Earnings (TTM)RM2.05b
Revenue (TTM)RM5.52b

16.5x

P/E Ratio

6.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PETGAS income statement (TTM)
RevenueRM5.52b
Cost of RevenueRM2.84b
Gross ProfitRM2.68b
ExpensesRM634.36m
EarningsRM2.05b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 20, 2021

Earnings per share (EPS)1.04
Gross Margin48.63%
Net Profit Margin37.13%
Debt/Equity Ratio15.0%

How did PETGAS perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

70%

Payout Ratio

Valuation

Is PETRONAS Gas Berhad undervalued compared to its fair value and its price relative to the market?

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PETGAS (MYR17.1) is trading below our estimate of fair value (MYR21.57)

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


Price To Earnings Ratio

PE vs Industry: PETGAS is good value based on its PE Ratio (16.5x) compared to the Asian Gas Utilities industry average (16.8x).

PE vs Market: PETGAS is poor value based on its PE Ratio (16.5x) compared to the MY market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: PETGAS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PETGAS is overvalued based on its PB Ratio (2.7x) compared to the XA Gas Utilities industry average (1.5x).


Future Growth

How is PETRONAS Gas Berhad forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PETGAS's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: PETGAS's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: PETGAS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PETGAS's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: PETGAS's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PETGAS's Return on Equity is forecast to be low in 3 years time (14.6%).


Past Performance

How has PETRONAS Gas Berhad performed over the past 5 years?

3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PETGAS has high quality earnings.

Growing Profit Margin: PETGAS's current net profit margins (37.1%) are higher than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: PETGAS's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: PETGAS's earnings growth over the past year (11.9%) exceeds its 5-year average (3.8% per year).

Earnings vs Industry: PETGAS earnings growth over the past year (11.9%) underperformed the Gas Utilities industry 23.7%.


Return on Equity

High ROE: PETGAS's Return on Equity (16.6%) is considered low.


Financial Health

How is PETRONAS Gas Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: PETGAS's short term assets (MYR4.3B) exceed its short term liabilities (MYR962.2M).

Long Term Liabilities: PETGAS's short term assets (MYR4.3B) do not cover its long term liabilities (MYR4.5B).


Debt to Equity History and Analysis

Debt Level: PETGAS's debt to equity ratio (15%) is considered satisfactory.

Reducing Debt: PETGAS's debt to equity ratio has increased from 3.3% to 15% over the past 5 years.

Debt Coverage: PETGAS's debt is well covered by operating cash flow (162.6%).

Interest Coverage: PETGAS's interest payments on its debt are well covered by EBIT (14.3x coverage).


Balance Sheet


Dividend

What is PETRONAS Gas Berhad current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PETGAS's dividend (4.5%) is higher than the bottom 25% of dividend payers in the MY market (1.53%).

High Dividend: PETGAS's dividend (4.5%) is in the top 25% of dividend payers in the MY market (4.16%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.5%), PETGAS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PETGAS's dividends in 3 years are forecast to be covered by earnings (79.6% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Abdul Bin Othman (55 yo)

0.75

Tenure

Mr. Abdul Aziz Bin Othman serves as Managing Director, Chief Executive Officer and Director at PETRONAS Gas Berhad since January 01, 2021. He was appointed as Chief Marketing Officer of PETRONAS LNG Limite...


Leadership Team

Experienced Management: PETGAS's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: PETGAS's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

PETRONAS Gas Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: PETRONAS Gas Berhad
  • Ticker: PETGAS
  • Exchange: KLSE
  • Founded: 1983
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: RM33.836b
  • Shares outstanding: 1.98b
  • Website: https://www.petronasgas.com

Number of Employees


Location

  • PETRONAS Gas Berhad
  • Tower 1
  • Level 49-50
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50088
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 15:38
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.