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Frencken Group

SGX:E28
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
E28
SGX
SGD273M
Market Cap
  1. Home
  2. SG
  3. Capital Goods
Company description

Frencken Group Limited, an investment holding company, operates as a capital and consumer equipment service provider worldwide. The last earnings update was 72 days ago. More info.


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E28 Share Price and Events
7 Day Returns
0%
SGX:E28
2.7%
SG Machinery
0.3%
SG Market
1 Year Returns
35.8%
SGX:E28
11.8%
SG Machinery
0.7%
SG Market
E28 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Frencken Group (E28) 0% -2.3% 0% 35.8% 186.7% 74.3%
SG Machinery 2.7% 1.5% -6.5% 11.8% 18.7% -34.9%
SG Market 0.3% 2.4% 0.7% 0.7% 9.6% -5%
1 Year Return vs Industry and Market
  • E28 outperformed the Machinery industry which returned 11.8% over the past year.
  • E28 outperformed the Market in Singapore which returned 0.7% over the past year.
Price Volatility
E28
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Frencken Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Frencken Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Frencken Group.

SGX:E28 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year SG Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:E28
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.081 (1 + (1- 24%) (31.01%))
1.225
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (1.225 * 5.96%)
9.6%

Discounted Cash Flow Calculation for SGX:E28 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Frencken Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SGX:E28 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 9.6%)
2020 23.77 Analyst x2 21.69
2021 27.44 Analyst x2 22.84
2022 25.40 Analyst x1 19.29
2023 28.00 Analyst x1 19.40
2024 28.99 Est @ 3.54% 18.33
2025 29.91 Est @ 3.17% 17.25
2026 30.78 Est @ 2.91% 16.20
2027 31.62 Est @ 2.73% 15.18
2028 32.44 Est @ 2.6% 14.21
2029 33.26 Est @ 2.51% 13.29
Present value of next 10 years cash flows SGD177.69
SGX:E28 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SGD33.26 × (1 + 2.3%) ÷ (9.6% – 2.3%)
SGD465.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD465.99 ÷ (1 + 9.6%)10
SGD186.24
SGX:E28 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD177.69 + SGD186.24
SGD363.93
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD363.93 / 423.66
SGD0.86
SGX:E28 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD0.86
Current discount Discount to share price of SGD0.65
= -1 x (SGD0.65 - SGD0.86) / SGD0.86
24.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Frencken Group is available for.
Intrinsic value
25%
Share price is SGD0.645 vs Future cash flow value of SGD0.85902
Current Discount Checks
For Frencken Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Frencken Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Frencken Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Frencken Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Frencken Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:E28 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in SGD SGD0.08
SGX:E28 Share Price ** SGX (2019-07-19) in SGD SGD0.65
Singapore Machinery Industry PE Ratio Median Figure of 13 Publicly-Listed Machinery Companies 9.14x
Singapore Market PE Ratio Median Figure of 327 Publicly-Listed Companies 13.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Frencken Group.

SGX:E28 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:E28 Share Price ÷ EPS (both in SGD)

= 0.65 ÷ 0.08

8.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frencken Group is good value based on earnings compared to the SG Machinery industry average.
  • Frencken Group is good value based on earnings compared to the Singapore market.
Price based on expected Growth
Does Frencken Group's expected growth come at a high price?
Raw Data
SGX:E28 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.52x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
5.7%per year
Singapore Machinery Industry PEG Ratio Median Figure of 5 Publicly-Listed Machinery Companies 0.33x
Singapore Market PEG Ratio Median Figure of 119 Publicly-Listed Companies 1.69x

*Line of best fit is calculated by linear regression .

SGX:E28 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.52x ÷ 5.7%

1.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frencken Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Frencken Group's assets?
Raw Data
SGX:E28 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in SGD SGD0.65
SGX:E28 Share Price * SGX (2019-07-19) in SGD SGD0.65
Singapore Machinery Industry PB Ratio Median Figure of 20 Publicly-Listed Machinery Companies 0.82x
Singapore Market PB Ratio Median Figure of 431 Publicly-Listed Companies 0.73x
SGX:E28 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:E28 Share Price ÷ Book Value per Share (both in SGD)

= 0.65 ÷ 0.65

0.99x

* Primary Listing of Frencken Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frencken Group is overvalued based on assets compared to the SG Machinery industry average.
X
Value checks
We assess Frencken Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Frencken Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Frencken Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Frencken Group expected to grow at an attractive rate?
  • Frencken Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Frencken Group's earnings growth is positive but not above the Singapore market average.
  • Frencken Group's revenue growth is positive but not above the Singapore market average.
Annual Growth Rates Comparison
Raw Data
SGX:E28 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:E28 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 5.7%
SGX:E28 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.5%
Singapore Machinery Industry Earnings Growth Rate Market Cap Weighted Average 15%
Singapore Machinery Industry Revenue Growth Rate Market Cap Weighted Average -0.4%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.7%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:E28 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:E28 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 691 59 39 2
2020-12-31 706 50 39 3
2019-12-31 670 50 37 3
SGX:E28 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-03-31 646 38 32
2018-12-31 626 25 30
2018-09-30 576 16 24
2018-06-30 541 17 24
2018-03-31 519 24 24
2017-12-31 515 35 33
2017-09-30 501 28 32
2017-06-30 492 22 32
2017-03-31 487 21 29
2016-12-31 466 18 16
2016-09-30 458 23 12
2016-06-30 445 29 12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Frencken Group's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Frencken Group's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:E28 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Frencken Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:E28 Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.09 0.10 0.09 2.00
2020-12-31 0.09 0.09 0.09 3.00
2019-12-31 0.09 0.09 0.08 3.00
SGX:E28 Past Financials Data
Date (Data in SGD Millions) EPS *
2019-03-31 0.08
2018-12-31 0.07
2018-09-30 0.06
2018-06-30 0.06
2018-03-31 0.06
2017-12-31 0.08
2017-09-30 0.08
2017-06-30 0.08
2017-03-31 0.07
2016-12-31 0.04
2016-09-30 0.03
2016-06-30 0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Frencken Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Frencken Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Singapore market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Singapore market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Frencken Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Frencken Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Frencken Group's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Frencken Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Frencken Group's 1-year earnings growth exceeds its 5-year average (33.2% vs 22%)
  • Frencken Group's earnings growth has exceeded the SG Machinery industry average in the past year (33.2% vs 33%).
Earnings and Revenue History
Frencken Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Frencken Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:E28 Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 646.12 31.87 58.23
2018-12-31 625.79 30.03 59.33
2018-09-30 575.56 24.20 57.78
2018-06-30 540.89 23.96 58.61
2018-03-31 519.43 23.92 57.96
2017-12-31 515.09 33.44 57.77
2017-09-30 500.80 32.29 57.84
2017-06-30 492.26 31.65 56.38
2017-03-31 486.81 29.12 55.40
2016-12-31 466.42 15.91 53.63
2016-09-30 458.35 12.41 51.09
2016-06-30 445.31 11.82 50.29
2016-03-31 441.72 11.84 49.79
2015-12-31 439.38 9.22 50.12
2015-09-30 451.49 9.11 51.34
2015-06-30 464.73 7.56 52.03
2015-03-31 473.51 8.00 52.98
2014-12-31 472.74 11.36 52.49
2014-09-30 466.94 14.42 52.22
2014-06-30 465.65 18.86 51.41
2014-03-31 448.40 18.39 49.47
2013-12-31 444.74 17.74 48.16
2013-09-30 430.62 3.15 46.87
2013-06-30 394.27 -5.05 41.02
2013-03-31 378.48 -8.93 36.13
2012-12-31 360.96 -11.81 31.63
2012-09-30 351.87 -1.90 27.48

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Frencken Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Frencken Group used its assets more efficiently than the SG Machinery industry average last year based on Return on Assets.
  • Frencken Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Frencken Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Frencken Group has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Frencken Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Frencken Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Frencken Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Frencken Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Frencken Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Frencken Group Company Filings, last reported 3 months ago.

SGX:E28 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 276.87 67.58 69.84
2018-12-31 267.52 68.71 69.00
2018-09-30 259.16 78.65 67.13
2018-06-30 256.58 82.35 61.21
2018-03-31 260.38 72.41 69.37
2017-12-31 249.54 63.61 69.79
2017-09-30 241.50 55.98 60.61
2017-06-30 235.26 62.80 58.43
2017-03-31 229.97 57.40 60.01
2016-12-31 214.67 58.46 19.94
2016-09-30 212.08 56.54 18.32
2016-06-30 210.02 60.14 15.39
2016-03-31 209.61 59.75 22.53
2015-12-31 205.60 51.44 16.42
2015-09-30 206.11 55.92 20.48
2015-06-30 205.12 61.93 15.20
2015-03-31 208.31 59.95 20.11
2014-12-31 208.46 54.61 20.50
2014-09-30 211.67 61.05 14.28
2014-06-30 209.55 65.50 13.75
2014-03-31 210.74 55.10 21.49
2013-12-31 207.07 48.11 21.55
2013-09-30 202.29 84.23 48.19
2013-06-30 198.64 92.79 46.48
2013-03-31 192.99 96.17 45.61
2012-12-31 188.01 84.30 51.89
2012-09-30 187.39 66.72 41.87
  • Frencken Group's level of debt (24.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (26.2% vs 24.4% today).
  • Debt is well covered by operating cash flow (55.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 32x coverage).
X
Financial health checks
We assess Frencken Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Frencken Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Frencken Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.32%
Current annual income from Frencken Group dividends. Estimated to be 4.32% next year.
If you bought SGD2,000 of Frencken Group shares you are expected to receive SGD66 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Frencken Group's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.55%).
  • Frencken Group's dividend is below the markets top 25% of dividend payers in Singapore (5.5%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:E28 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Singapore Machinery Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 3.4%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 278 Stocks 3.8%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.7%
Singapore Bottom 25% Dividend Yield 25th Percentile 2.6%
Singapore Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:E28 Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.03 2.00
2020-12-31 0.03 3.00
2019-12-31 0.03 3.00
SGX:E28 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.021 3.636
2018-02-22 0.017 3.590
2017-02-23 0.012 2.482
2016-04-12 0.008 2.974
2016-02-25 0.008 3.541
2015-02-26 0.010 4.957
2014-02-27 0.014 4.700
2013-03-01 0.005 2.105
2012-02-23 0.006 2.929
2011-04-06 0.014 5.143
2010-05-03 0.007 2.638
2009-03-02 0.019 8.840

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Frencken Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess Frencken Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Frencken Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Frencken Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Frencken Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • Frencken Group has no CEO, or we have no data on them.
Management Team Tenure

Average tenure of the Frencken Group management team in years:

4.3
Average Tenure
  • The tenure for the Frencken Group management team is about average.
Management Team

Dennis Au

TITLE
President & Executive Director
TENURE
4.2 yrs

David Choon

TITLE
Chief Financial Officer
TENURE
3.3 yrs

Liang Horng Wang

TITLE
Vice President of Operations
TENURE
4.5 yrs

Choi Fan Toon

TITLE
Joint Company Secretary

Mei Wan Low

TITLE
Joint Company Secretary
TENURE
6.5 yrs

Ing Koh

TITLE
Executive Officer

Pasty Cheong

TITLE
Executive Officer
AGE
51

Frances Yap

TITLE
Executive Officer
AGE
55
Board of Directors Tenure

Average tenure and age of the Frencken Group board of directors in years:

4.3
Average Tenure
60.5
Average Age
  • The tenure for the Frencken Group board of directors is about average.
Board of Directors

Soon Gooi

TITLE
Non-Executive & Non-Independent Chairman
AGE
58
TENURE
2.9 yrs

Dennis Au

TITLE
President & Executive Director
TENURE
3.3 yrs

David Wong

TITLE
Executive Chairman of Juken Technology Limited
AGE
63

Chor Leong Chia

TITLE
Independent Non-Executive Director
AGE
64
TENURE
14.8 yrs

Yong Wah Ling

TITLE
Lead Independent Non-Executive Director
AGE
53
TENURE
5.3 yrs

Jeu Nam Yeo

TITLE
Independent Non-Executive Director
AGE
69
TENURE
8.7 yrs

Melvin Chan

TITLE
Independent Non-Executive Director
AGE
56
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Frencken Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
03. Jun 19 Buy Soon Gooi Individual 31. May 19 31. May 19 200,000 SGD0.60 SGD119,000
14. May 19 Buy Sinn Hin Company Sdn. Bhd. Company 13. May 19 13. May 19 10,000 SGD0.59 SGD5,900
05. Mar 19 Buy Soon Gooi Individual 04. Mar 19 04. Mar 19 49,300 SGD0.47 SGD23,071
04. Mar 19 Buy Soon Gooi Individual 01. Mar 19 01. Mar 19 100,000 SGD0.47 SGD46,958
16. Jan 19 Buy Sinn Hin Company Sdn. Bhd. Company 15. Jan 19 15. Jan 19 5,200 SGD0.40 SGD2,085
03. Jan 19 Buy Sinn Hin Company Sdn. Bhd. Company 27. Dec 18 02. Jan 19 23,200 SGD0.42 SGD9,369
30. Nov 18 Buy Soon Gooi Individual 29. Nov 18 29. Nov 18 204,900 SGD0.41 SGD84,009
26. Sep 18 Buy Sinn Hin Company Sdn. Bhd. Company 25. Sep 18 25. Sep 18 10,000 SGD0.42 SGD4,250
20. Aug 18 Buy Soon Gooi Individual 17. Aug 18 17. Aug 18 144,000 SGD0.40 SGD57,600
X
Management checks
We assess Frencken Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Frencken Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Frencken Group Limited’s (SGX:E28) 15% ROCE Any Good?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Frencken Group: 0.15 = S$44m ÷ (S$480m - S$184m) (Based on the trailing twelve months to March 2019.) So, Frencken Group has an ROCE of 15%. … What Are Current Liabilities, And How Do They Affect Frencken Group's ROCE? … Our Take On Frencken Group's ROCE With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better.

Simply Wall St -

Is Frencken Group Limited's (SGX:E28) ROE Of 12% Impressive?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Frencken Group: 12% = S$32m ÷ S$277m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Frencken Group Have A Good Return On Equity? … Combining Frencken Group's Debt And Its 12% Return On Equity Frencken Group has a debt to equity ratio of 0.24, which is far from excessive.

Simply Wall St -

Are Investors Undervaluing Frencken Group Limited (SGX:E28) By 25%?

Today we will run through one way of estimating the intrinsic value of Frencken Group Limited (SGX:E28) by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (SGD, Millions) SGD23.8m SGD27.4m SGD25.4m SGD28.0m SGD29.0m SGD29.9m SGD30.8m SGD31.6m SGD32.4m SGD33.3m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Analyst x1 Est @ 3.54% Est @ 3.17% Est @ 2.91% Est @ 2.73% Est @ 2.6% Est @ 2.51% Present Value (SGD, Millions) Discounted @ 9.57% SGD21.7 SGD22.9 SGD19.3 SGD19.4 SGD18.4 SGD17.3 SGD16.2 SGD15.2 SGD14.3 SGD13.3 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= SGD178.0m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = S$33m × (1 + 2.3%) ÷ (9.6% – 2.3%) = S$468m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = SGDS$468m ÷ ( 1 + 9.6%)10 = SGD187.91m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is SGD365.92m.

Simply Wall St -

Here's What Frencken Group Limited's (SGX:E28) P/E Ratio Is Telling Us

View our latest analysis for Frencken Group How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Frencken Group: P/E of 8.39 = SGD0.64 ÷ SGD0.076 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … Since Frencken Group holds net cash of S$2.3m, it can spend on growth, justifying a higher P/E ratio than otherwise.

Simply Wall St -

Does Frencken Group Limited's (SGX:E28) 33% Earnings Growth Reflect The Long-Term Trend?

Let's see whether it is only because of an industry uplift, or if Frencken Group has experienced some company-specific growth. … However, its return on assets (ROA) of 6.9% exceeds the SG Machinery industry of 5.1%, indicating Frencken Group has used its assets more efficiently. … I recommend you continue to research Frencken Group to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for E28’s future growth?

Simply Wall St -

With EPS Growth And More, Frencken Group (SGX:E28) Is Interesting

Any way you look at it Frencken Group shareholders can gain quiet confidence from the fact that insiders shelled out S$476k to buy stock, over the last year. … On top of the insider buying, it's good to see that Frencken Group insiders have a valuable investment in the business. … The good news is that Frencken Group is not the only growth stock with insider buying.

Simply Wall St -

Does Frencken Group Limited (SGX:E28) Have A Particularly Volatile Share Price?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Check out our latest analysis for Frencken Group What we can learn from E28's beta value Given that it has a beta of 1.23, we can surmise that the Frencken Group share price has been fairly sensitive to market volatility (over the last 5 years). … What this means for you: Beta only tells us that the Frencken Group share price is sensitive to broader market movements.

Simply Wall St -

Why Frencken Group Limited (SGX:E28) Could Be Your Next Investment

For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Frencken Group here. … SGX:E28 Income Statement, May 20th 2019 Next Steps: For Frencken Group, there are three key factors you should further examine: Future Outlook: What are well-informed industry analysts predicting for E28’s future growth? … Take a look at our free research report of analyst consensus for E28’s outlook.

Simply Wall St -

Can We See Significant Insider Ownership On The Frencken Group Limited (SGX:E28) Share Register?

Every investor in Frencken Group Limited (SGX:E28) should be aware of the most powerful shareholder groups. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Frencken Group is not a large company by global standards.

Simply Wall St -

Is Now An Opportune Moment To Examine Frencken Group Limited (SGX:E28)?

saw a significant share price rise of over 20% in the past couple of months on the SGX. … Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … Today I will analyse the most recent data on Frencken Group’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Company Info

Description

Frencken Group Limited, an investment holding company, operates as a capital and consumer equipment service provider worldwide. It operates in two segments, Mechatronics and Integrated Manufacturing Services (IMS). The Mechatronics segment designs, develops, and produces precision-engineered systems and machines, electromechanical assemblies, and high precision parts and components for original equipment manufacturers. It offers integrated one-stop outsourcing solutions, such as product design, development, and prototyping; project management and engineering support; strategic purchasing and sourcing; high precision parts and components manufacturing; final test and assembly of modules and complete systems/machines; and product life cycle management. This segment serves medical, semiconductor, analytical, pharmaceutical, and industrial/factory automation industries. The IMS segment provides integrated contract design and manufacturing services to the automotive, office automation, and consumer and industrial electronics industries. This segment offers a range of outsourcing services, including mechanical and electronic design and engineering support; tooling design and manufacture; plastic injection molded parts and components; printed circuit board assemblies; and final test and assembly of modules and box build products. The company also provides program and supply chain management services; modular and equipment system assembly, integration, testing, and commissioning services; and vacuum coating, thermal treatment, and other related services for plastic components. In addition, it manufactures sheet metal parts and dies; designs, engineers, manufactures, and sells oil filters; manufactures and distributes plastic products and components; designs and trades in micro-mechanical product components for automotive industry; and sells tools and machines, as well as holds properties. Frencken Group Limited was founded in 1995 and is based in George Town, Malaysia.

Details
Name: Frencken Group Limited
E28
Exchange: SGX
Founded:
SGD273,262,253
423,662,409
Website: http://www.frenckengroup.com
Address: Frencken Group Limited
Wisma Great Eastern,
Suite 2.1,
George Town,
Pulau Pinang, 10200,
Malaysia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX E28 Ordinary Shares Singapore Exchange SG SGD 09. May 2005
Number of employees
Current staff
Staff numbers
3,500
Frencken Group employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 12:49
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.