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IX2

PEC SGX:IX2 Stock Report

Last Price

S$0.61

Market Cap

S$156.5m

7D

0%

1Y

18.3%

Updated

06 Oct, 2022

Data

Company Financials
IX2 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends3/6

IX2 Stock Overview

PEC Ltd., together with its subsidiaries, provides mechanical engineering and contracting services to the oil and gas, petrochemical, pharmaceutical, and oil and chemical terminal industries.

PEC Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PEC
Historical stock prices
Current Share PriceS$0.61
52 Week HighS$0.64
52 Week LowS$0.50
Beta0.54
1 Month Change0%
3 Month Change7.90%
1 Year Change18.27%
3 Year Change6.96%
5 Year Change2.50%
Change since IPO-14.58%

Recent News & Updates

Shareholder Returns

IX2SG ConstructionSG Market
7D0%0.1%0.8%
1Y18.3%-3.4%-2.7%

Return vs Industry: IX2 exceeded the SG Construction industry which returned -2% over the past year.

Return vs Market: IX2 exceeded the SG Market which returned -2.2% over the past year.

Price Volatility

Is IX2's price volatile compared to industry and market?
IX2 volatility
IX2 Average Weekly Movement4.8%
Construction Industry Average Movement6.9%
Market Average Movement4.6%
10% most volatile stocks in SG Market12.7%
10% least volatile stocks in SG Market2.3%

Stable Share Price: IX2 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IX2's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1982n/aRobert Dompelinghttps://www.peceng.com

PEC Ltd., together with its subsidiaries, provides mechanical engineering and contracting services to the oil and gas, petrochemical, pharmaceutical, and oil and chemical terminal industries. The company operates in three segments: Project Works; Plant Maintenance and Related Services; and Other Operations. It offers engineering, procurement, and construction (EPC) services, as well as engineering design and maintenance services; EPC project management and consultancy services; plant maintenance services, including plant turnarounds and upgrading, and makes up services; and engineering, mechanical, piping, structural, tankage, electrical and instrumentation, heat treatment, testing and isolation, painting and blasting, scaffolding, insulation and refractories, fireproofing, and hydrojetting services.

PEC Fundamentals Summary

How do PEC's earnings and revenue compare to its market cap?
IX2 fundamental statistics
Market CapS$156.51m
Earnings (TTM)S$14.14m
Revenue (TTM)S$427.98m

11.1x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IX2 income statement (TTM)
RevenueS$427.98m
Cost of RevenueS$303.35m
Gross ProfitS$124.64m
Other ExpensesS$110.49m
EarningsS$14.14m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.056
Gross Margin29.12%
Net Profit Margin3.30%
Debt/Equity Ratio5.4%

How did IX2 perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

45%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IX2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IX2?

Other financial metrics that can be useful for relative valuation.

IX2 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/Revenue0.1x
Enterprise Value/EBITDA1.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does IX2's PE Ratio compare to its peers?

IX2 PE Ratio vs Peers
The above table shows the PE ratio for IX2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8x
J2T Hock Lian Seng Holdings
5.6xn/aS$138.3m
ER0 KSH Holdings
7.8xn/aS$188.7m
E3B Wee Hur Holdings
7.3xn/aS$182.0m
MR7 Nordic Group
10.9xn/aS$191.9m
IX2 PEC
11.1xn/aS$156.5m

Price-To-Earnings vs Peers: IX2 is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (8x).


Price to Earnings Ratio vs Industry

How does IX2's PE Ratio compare vs other companies in the SG Construction Industry?

Price-To-Earnings vs Industry: IX2 is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the SG Construction industry average (10.2x)


Price to Earnings Ratio vs Fair Ratio

What is IX2'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.

IX2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate IX2's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of IX2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IX2 (SGD0.62) is trading above our estimate of fair value (SGD0.55)

Significantly Below Fair Value: IX2 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is PEC forecast to perform in the next 1 to 3 years based on estimates from 0 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


15.8%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as PEC has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine PEC's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • PEC competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has PEC performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IX2 has high quality earnings.

Growing Profit Margin: IX2's current net profit margins (3.3%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: IX2's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: IX2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IX2 had negative earnings growth (-36.7%) over the past year, making it difficult to compare to the Construction industry average (19.8%).


Return on Equity

High ROE: IX2's Return on Equity (6.8%) is considered low.


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Financial Health

How is PEC's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IX2's short term assets (SGD292.9M) exceed its short term liabilities (SGD125.8M).

Long Term Liabilities: IX2's short term assets (SGD292.9M) exceed its long term liabilities (SGD24.5M).


Debt to Equity History and Analysis

Debt Level: IX2 has more cash than its total debt.

Reducing Debt: IX2's debt to equity ratio has increased from 4% to 5.4% over the past 5 years.

Debt Coverage: IX2's debt is well covered by operating cash flow (153.6%).

Interest Coverage: IX2's interest payments on its debt are well covered by EBIT (38.7x coverage).


Balance Sheet


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Dividend

What is PEC current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.06%

Current Dividend Yield

Dividend Yield vs Market

PEC Dividend Yield vs Market
How does PEC dividend yield compare to the market?
SegmentDividend Yield
Company (PEC)4.1%
Market Bottom 25% (SG)2.5%
Market Top 25% (SG)6.4%
Industry Average (Construction)4.3%
Analyst forecast in 3 Years (PEC)n/a

Notable Dividend: IX2's dividend (4.07%) is higher than the bottom 25% of dividend payers in the SG market (2.44%).

High Dividend: IX2's dividend (4.07%) is low compared to the top 25% of dividend payers in the SG market (6.49%).


Stability and Growth of Payments

Stable Dividend: IX2's dividend payments have been volatile in the past 10 years.

Growing Dividend: IX2's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45%), IX2's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43%), IX2's dividend payments are well covered by cash flows.


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Management

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

10.5yrs

Average management tenure


CEO

Robert Dompeling (65 yo)

15.25yrs

Tenure

Mr. Robert Dompeling has been the Group Chief Executive Officer of PEC Ltd. since July 2007. Mr. Dompeling is responsible for the operational, commercial and financial management as well as charting the bu...


Leadership Team

Experienced Management: IX2's management team is seasoned and experienced (10.5 years average tenure).


Board Members

Experienced Board: IX2's board of directors are considered experienced (8.8 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

What is the ownership structure of IX2?
Owner TypeNumber of SharesOwnership Percentage
Institutions11,120,3004.4%
General Public59,641,88223.4%
Private Companies85,750,00033.7%
Individual Insiders97,981,64438.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 19 shareholders own 76.56% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
33.69%
Tian San Company (Pte.) Limited
85,750,000SGD52.7m0%no data
13.95%
Poh Thim Ko
35,505,844SGD21.8m0%no data
9.28%
Teong Ko
23,624,475SGD14.5m0%no data
4.33%
Yeoman Capital Management Pte Ltd
11,032,000SGD6.8m0%6.45%
2.78%
Kim Lee Ho
7,062,700SGD4.3m0%no data
2.01%
Chee-Chong Yim
5,126,000SGD3.2m0%no data
1.81%
Peng Wong
4,594,056SGD2.8m0%no data
1.44%
Poh Ko
3,669,200SGD2.3m0%no data
1.38%
Khan Tee Ng
3,501,575SGD2.2m0%no data
1.38%
Mei Shu Teoh
3,500,000SGD2.2m0%no data
1.05%
Lu Teng Ko
2,668,950SGD1.6m0%no data
0.89%
Seng Chong Yeo
2,275,000SGD1.4m0%no data
0.69%
May Lee
1,750,000SGD1.1m0%no data
0.68%
Robert Dompeling
1,725,844SGD1.1m0%no data
0.63%
Lu Sein Ko
1,600,000SGD984.0k0%no data
0.51%
Mehdi Iskounen
1,300,000SGD799.5k0%no data
0.033%
SEI Investments Company
83,300SGD51.2k0%no data
0.031%
Cheong Fook Wong
78,000SGD48.0k0%no data
0.002%
Acadian Asset Management LLC
5,000SGD3.1k0%no data

Company Information

PEC Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: PEC Ltd.
  • Ticker: IX2
  • Exchange: SGX
  • Founded: 1982
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: S$156.514m
  • Shares outstanding: 254.49m
  • Website: https://www.peceng.com

Number of Employees


Location

  • PEC Ltd.
  • 14 International Business Park
  • Singapore
  • 609922
  • Singapore


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IX2SGX (Singapore Exchange)YesOrdinary SharesSGSGDAug 2009
QPEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2009

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/06 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.