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BEC

BRC AsiaSGX:BEC Stock Report

Market Cap

S$389.6m

7D

-0.7%

1Y

14.5%

Updated

21 Oct, 2021

Data

Company Financials +
BEC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends5/6

BEC Overview

BRC Asia Limited, together with its subsidiaries, engages in the prefabrication of steel reinforcement for use in concrete in Singapore, China, Hong Kong, Malaysia, Thailand, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for BRC Asia
Historical stock prices
Current Share PriceS$1.42
52 Week HighS$1.17
52 Week LowS$1.67
Beta0.94
1 Month Change-3.40%
3 Month Change-5.96%
1 Year Change14.52%
3 Year Change6.77%
5 Year Change173.08%
Change since IPO29.09%

Recent News & Updates

Jun 10
These 4 Measures Indicate That BRC Asia (SGX:BEC) Is Using Debt Reasonably Well

These 4 Measures Indicate That BRC Asia (SGX:BEC) Is Using Debt Reasonably Well

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

May 24
BRC Asia Limited's (SGX:BEC) Intrinsic Value Is Potentially 65% Above Its Share Price

BRC Asia Limited's (SGX:BEC) Intrinsic Value Is Potentially 65% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of BRC Asia Limited...

May 06
Three Things You Should Check Before Buying BRC Asia Limited (SGX:BEC) For Its Dividend

Three Things You Should Check Before Buying BRC Asia Limited (SGX:BEC) For Its Dividend

Dividend paying stocks like BRC Asia Limited ( SGX:BEC ) tend to be popular with investors, and for good reason - some...

Shareholder Returns

BECSG BuildingSG Market
7D-0.7%-0.8%1.2%
1Y14.5%24.8%22.7%

Return vs Industry: BEC underperformed the SG Building industry which returned 24.8% over the past year.

Return vs Market: BEC underperformed the SG Market which returned 22.7% over the past year.

Price Volatility

Is BEC's price volatile compared to industry and market?
BEC volatility
BEC Beta0.94
Industry Beta0.86
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
19381,000Kiin Peng Seahhttps://www.brc.com.sg

BRC Asia Limited, together with its subsidiaries, engages in the prefabrication of steel reinforcement for use in concrete in Singapore, China, Hong Kong, Malaysia, Thailand, and internationally. It operates through Fabrication and Manufacturing, and Others segments. The company is involved in the trade of steel reinforcing bars; manufacture and sale of wire mesh fences; trading and distribution of steel products; and provision of weldfences and cages, as well as prefabrication, rebar, and cut and bend services.

BRC Asia Fundamentals Summary

How do BRC Asia's earnings and revenue compare to its market cap?
BEC fundamental statistics
Market CapS$389.58m
Earnings (TTM)S$29.54m
Revenue (TTM)S$950.17m

13.2x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BEC income statement (TTM)
RevenueS$950.17m
Cost of RevenueS$877.70m
Gross ProfitS$72.47m
ExpensesS$42.93m
EarningsS$29.54m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin7.63%
Net Profit Margin3.11%
Debt/Equity Ratio123.6%

How did BEC perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

48%

Payout Ratio

Valuation

Is BRC Asia 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: BEC (SGD1.42) is trading below our estimate of fair value (SGD16.82)

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


Price To Earnings Ratio

PE vs Industry: BEC is good value based on its PE Ratio (13.2x) compared to the Asian Building industry average (14.8x).

PE vs Market: BEC is good value based on its PE Ratio (13.2x) compared to the SG market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: BEC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BEC is overvalued based on its PB Ratio (1.3x) compared to the SG Building industry average (0.6x).


Future Growth

How is BRC Asia forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEC's forecast earnings growth (20.1% per year) is above the savings rate (1.8%).

Earnings vs Market: BEC's earnings (20.1% per year) are forecast to grow faster than the SG market (15.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BEC's revenue (7.1% per year) is forecast to grow slower than the SG market (7.2% per year).

High Growth Revenue: BEC's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BEC's Return on Equity is forecast to be low in 3 years time (14.5%).


Past Performance

How has BRC Asia performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEC has a high level of non-cash earnings.

Growing Profit Margin: BEC's current net profit margins (3.1%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: BEC's earnings have grown significantly by 33.4% per year over the past 5 years.

Accelerating Growth: BEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BEC had negative earnings growth (-4.9%) over the past year, making it difficult to compare to the Building industry average (32.5%).


Return on Equity

High ROE: BEC's Return on Equity (10.1%) is considered low.


Financial Health

How is BRC Asia's financial position?


Financial Position Analysis

Short Term Liabilities: BEC's short term assets (SGD668.1M) exceed its short term liabilities (SGD445.5M).

Long Term Liabilities: BEC's short term assets (SGD668.1M) exceed its long term liabilities (SGD94.8M).


Debt to Equity History and Analysis

Debt Level: BEC's debt to equity ratio (123.6%) is considered high.

Reducing Debt: BEC's debt to equity ratio has increased from 26.6% to 123.6% over the past 5 years.

Debt Coverage: BEC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BEC's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet


Dividend

What is BRC Asia current dividend yield, its reliability and sustainability?

5.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BEC's dividend (5.63%) is higher than the bottom 25% of dividend payers in the SG market (1.96%).

High Dividend: BEC's dividend (5.63%) is in the top 25% of dividend payers in the SG market (5.27%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.3%), BEC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BEC's dividends in 3 years are forecast to be well covered by earnings (40% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Kiin Peng Seah

3.08yrs

Tenure

Mr. Kiin Peng Seah has been Chief Executive Officer at BRC Asia Limited since September 26, 2018 and its Executive Director since March 1, 2010. He is responsible for assisting its Managing Director in str...


Leadership Team

Experienced Management: BEC's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: BEC's board of directors are considered experienced (3.8 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 been diluted in the past year, with total shares outstanding growing by 17.6%.


Top Shareholders

Company Information

BRC Asia Limited's employee growth, exchange listings and data sources


Key Information

  • Name: BRC Asia Limited
  • Ticker: BEC
  • Exchange: SGX
  • Founded: 1938
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: S$389.577m
  • Shares outstanding: 274.35m
  • Website: https://www.brc.com.sg

Number of Employees


Location

  • BRC Asia Limited
  • 350 Jalan Boon Lay
  • Jurong Industrial Estate
  • Singapore
  • 619530
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:07
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.