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TENA

Tenaga Nasional BerhadKLSE:TENAGA Stock Report

Market Cap

RM51.6b

7D

-2.6%

1Y

-17.2%

Updated

06 Dec, 2021

Data

Company Financials +
TENAGA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health1/6
Dividends4/6

TENAGA Stock Overview

Tenaga Nasional Berhad engages in the generation, transmission, distribution, and sale of electricity in Malaysia and internationally.

Tenaga Nasional Berhad Competitors

Ranhill Utilities Berhad

KLSE:RANHILL

RM738.4m

Price History & Performance

Summary of all time highs, changes and price drops for Tenaga Nasional Berhad
Historical stock prices
Current Share PriceRM9.02
52 Week HighRM11.00
52 Week LowRM9.02
Beta0.22
1 Month Change-6.14%
3 Month Change-12.77%
1 Year Change-17.25%
3 Year Change-33.48%
5 Year Change-35.48%
Change since IPO61.07%

Recent News & Updates

Oct 12
Tenaga Nasional Berhad (KLSE:TENAGA) May Have Issues Allocating Its Capital

Tenaga Nasional Berhad (KLSE:TENAGA) May Have Issues Allocating Its Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect...

Sep 07
Is Tenaga Nasional Berhad (KLSE:TENAGA) Using Too Much Debt?

Is Tenaga Nasional Berhad (KLSE:TENAGA) Using Too Much Debt?

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

Shareholder Returns

TENAGAMY Electric UtilitiesMY Market
7D-2.6%0.6%-1.9%
1Y-17.2%22.8%-7.1%

Return vs Industry: TENAGA underperformed the MY Electric Utilities industry which returned 22.3% over the past year.

Return vs Market: TENAGA underperformed the MY Market which returned -5.6% over the past year.

Price Volatility

Is TENAGA's price volatile compared to industry and market?
TENAGA volatility
TENAGA Average Weekly Movement1.4%
Electric Utilities Industry Average Movement4.9%
Market Average Movement5.6%
10% most volatile stocks in MY Market11.9%
10% least volatile stocks in MY Market2.7%

Stable Share Price: TENAGA is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: TENAGA's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194935,576Baharin Bin Dinhttps://www.tnb.com.my

Tenaga Nasional Berhad engages in the generation, transmission, distribution, and sale of electricity in Malaysia and internationally. The company operates and maintains thermal generation facilities and hydroelectric power generating schemes, as well as supports independent power producers; and manages and operates the National Grid that is connected to Thailand’s transmission system, as well as Singapore’s transmission system at Senoko. It also supplies fuel and coal for power generation; generates, distributes, supplies, deals in, and sells various energy sources, as well as provides related technical services; develops district cooling systems; operates and maintains co-generation works; manufactures, sells, and repairs distribution, power, and earthing transformers; and develops, owns, and manages dry bulk terminals.

Tenaga Nasional Berhad Fundamentals Summary

How do Tenaga Nasional Berhad's earnings and revenue compare to its market cap?
TENAGA fundamental statistics
Market CapRM51.65b
Earnings (TTM)RM4.00b
Revenue (TTM)RM47.22b

12.9x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TENAGA income statement (TTM)
RevenueRM47.22b
Cost of RevenueRM33.88b
Gross ProfitRM13.34b
ExpensesRM9.35b
EarningsRM4.00b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.70
Gross Margin28.26%
Net Profit Margin8.46%
Debt/Equity Ratio86.3%

How did TENAGA perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

57%

Payout Ratio

Valuation

Is Tenaga Nasional Berhad undervalued compared to its fair value and its price relative to the market?

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TENAGA (MYR9.02) is trading below our estimate of fair value (MYR14.75)

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


Price To Earnings Ratio

PE vs Industry: TENAGA is good value based on its PE Ratio (12.9x) compared to the Asian Electric Utilities industry average (15.4x).

PE vs Market: TENAGA is good value based on its PE Ratio (12.9x) compared to the MY market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: TENAGA is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: TENAGA's PB Ratio (0.9x) is in line with the XA Electric Utilities industry average.


Future Growth

How is Tenaga Nasional Berhad forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TENAGA's forecast earnings growth (3.3% per year) is below the savings rate (3.6%).

Earnings vs Market: TENAGA's earnings (3.3% per year) are forecast to grow slower than the MY market (10.9% per year).

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

Revenue vs Market: TENAGA's revenue (2.3% per year) is forecast to grow slower than the MY market (6.7% per year).

High Growth Revenue: TENAGA's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TENAGA's Return on Equity is forecast to be low in 3 years time (8.6%).


Past Performance

How has Tenaga Nasional Berhad performed over the past 5 years?

-18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TENAGA has high quality earnings.

Growing Profit Margin: TENAGA's current net profit margins (8.5%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: TENAGA's earnings have declined by 18.7% per year over the past 5 years.

Accelerating Growth: TENAGA's earnings growth over the past year (31.7%) exceeds its 5-year average (-18.7% per year).

Earnings vs Industry: TENAGA earnings growth over the past year (31.7%) exceeded the Electric Utilities industry 1.1%.


Return on Equity

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


Financial Health

How is Tenaga Nasional Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: TENAGA's short term assets (MYR23.7B) do not cover its short term liabilities (MYR26.2B).

Long Term Liabilities: TENAGA's short term assets (MYR23.7B) do not cover its long term liabilities (MYR91.8B).


Debt to Equity History and Analysis

Debt Level: TENAGA's net debt to equity ratio (66.9%) is considered high.

Reducing Debt: TENAGA's debt to equity ratio has increased from 66.4% to 86.3% over the past 5 years.

Debt Coverage: TENAGA's debt is well covered by operating cash flow (34.6%).

Interest Coverage: TENAGA's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

What is Tenaga Nasional Berhad current dividend yield, its reliability and sustainability?

4.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TENAGA's dividend (4.43%) is higher than the bottom 25% of dividend payers in the MY market (1.73%).

High Dividend: TENAGA's dividend (4.43%) is low compared to the top 25% of dividend payers in the MY market (4.62%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.2%), TENAGA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TENAGA's dividends in 3 years are forecast to be covered by earnings (63.8% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Baharin Bin Din (58 yo)

0.75

Tenure

Datuk Ir. Baharin Bin Din has been Chief Executive Officer, President and Executive Director at Tenaga Nasional Berhad since March 1, 2021. He served as Chief Distribution Network Officer at Tenaga Nasiona...


Leadership Team

Experienced Management: TENAGA's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: TENAGA's board of directors are not considered experienced ( 1.4 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

Tenaga Nasional Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Tenaga Nasional Berhad
  • Ticker: TENAGA
  • Exchange: KLSE
  • Founded: 1949
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: RM51.649b
  • Shares outstanding: 5.73b
  • Website: https://www.tnb.com.my

Number of Employees


Location

  • Tenaga Nasional Berhad
  • No. 129, Jalan Bangsar
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 59200
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/06 15:34
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
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.