SGX:A34

Stock Analysis Report

Executive Summary

Amara Holdings Limited, an investment holding company, engages in the hotel investment and management; property investment and development; and specialty restaurants and food services businesses in Singapore, the People’s Republic of China, and Thailand.


Snowflake Analysis

Fair value with acceptable track record.

Share Price & News

How has Amara Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A34 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

A34

0.3%

SG Hospitality

-0.3%

SG Market


1 Year Return

-6.7%

A34

-16.9%

SG Hospitality

-3.2%

SG Market

Return vs Industry: A34 exceeded the SG Hospitality industry which returned -16.9% over the past year.

Return vs Market: A34 underperformed the SG Market which returned -3.2% over the past year.


Shareholder returns

A34IndustryMarket
7 Day0%0.3%-0.3%
30 Day-5.6%-4.7%-2.1%
90 Day-7.7%-5.1%-1.1%
1 Year-2.6%-6.7%-14.1%-16.9%0.8%-3.2%
3 Year-0.7%-11.6%-1.4%-9.8%8.6%-2.9%
5 Year-5.0%-19.2%2.4%-11.7%8.8%-9.5%

Price Volatility Vs. Market

How volatile is Amara Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amara Holdings undervalued compared to its fair value and its price relative to the market?

7.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: A34 (SGD0.42) is trading above our estimate of fair value (SGD0.3)

Significantly Below Fair Value: A34 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: A34 is good value based on its PE Ratio (7.3x) compared to the Hospitality industry average (21.6x).

PE vs Market: A34 is good value based on its PE Ratio (7.3x) compared to the SG market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate A34's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: A34 is good value based on its PB Ratio (0.6x) compared to the SG Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Amara Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.8%

Forecasted Consumer Services 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 Amara Holdings 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.


Next Steps

Past Performance

How has Amara Holdings performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A34 has a large one-off gain of SGD22.3M impacting its September 30 2019 financial results.

Growing Profit Margin: A34's current net profit margins (31.7%) are higher than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: A34's earnings have declined by -3.9% per year over the past 5 years.

Accelerating Growth: A34's earnings growth over the past year (43.5%) exceeds its 5-year average (-3.9% per year).

Earnings vs Industry: A34 earnings growth over the past year (43.5%) exceeded the Hospitality industry -20.2%.


Return on Equity

High ROE: A34's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amara Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: A34's short term assets (SGD129.6M) exceed its short term liabilities (SGD125.6M).

Long Term Liabilities: A34's short term assets (SGD129.6M) do not cover its long term liabilities (SGD290.8M).


Debt to Equity History and Analysis

Debt Level: A34's debt to equity ratio (87.5%) is considered high.

Reducing Debt: A34's debt to equity ratio has increased from 80.7% to 87.5% over the past 5 years.

Debt Coverage: A34's debt is not well covered by operating cash flow (6.5%).

Interest Coverage: A34's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: A34 has a high level of physical assets or inventory.

Debt Coverage by Assets: A34's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Amara Holdings's current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: A34's dividend (2.38%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: A34's dividend (2.38%) is low compared to the top 25% of dividend payers in the SG market (5.62%).


Stability and Growth of Payments

Stable Dividend: A34's dividends per share have been stable in the past 10 years.

Growing Dividend: A34's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.4%), A34's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

31.1yrs

Average management tenure


CEO

Albert Teo (71yo)

31.1yrs

Tenure

Mr. Hock Chuan Teo, also known as Albert, serves as the Chairman of Amara Holdings Limited and has been its Chief Executive Officer since 1989. Mr. Teo was instrumental in spearheading the Direction and De ...


Leadership Team

NamePositionTenureCompensationOwnership
Hock Chuan Teo
Chairman & CEO31.1yrsno data6.14% SGD15.0m
Margaret Pmg
Chief Financial Officer0yrsno datano data
Pow Yoong Chang
Group Administration Manager0yrsno datano data
Geok Tin Teo
Company Secretary & Executive Director24.8yrsno data6.12% SGD14.9m
Soon Soo Foo
Company Secretary14.8yrsno datano data

31.1yrs

Average Tenure

64yo

Average Age

Experienced Management: A34's management team is seasoned and experienced (31.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hock Chuan Teo
Chairman & CEO31.1yrsno data6.14% SGD15.0m
Geok Tin Teo
Company Secretary & Executive Director24.8yrsno data6.12% SGD14.9m
Kwok Wah Mok
Non-Executive Director24.8yrsno data0.12% SGD301.8k
Ko Hing Foo
Lead Independent Director0.9yrsno datano data
Tiong Cheng Tan
Non-Executive Independent Director1.7yrsno datano data
Kwok Ping Chia
Independent Director4.3yrsno datano data

4.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: A34's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Amara Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amara Holdings Limited
  • Ticker: A34
  • Exchange: SGX
  • Founded: 1970
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: S$244.361m
  • Shares outstanding: 574.97m
  • Website: https://www.amaraholdings.com

Number of Employees


Location

  • Amara Holdings Limited
  • No. 06-01 100 Tras Street, 100 AM
  • Singapore
  • 79027
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A34SGX (Singapore Exchange)YesOrdinary SharesSGSGDAug 1997

Biography

Amara Holdings Limited, an investment holding company, engages in the hotel investment and management; property investment and development; and specialty restaurants and food services businesses in Singapore, the People’s Republic of China, and Thailand. It invests in and develops office, retail, and residential developments. The company is also involved in the share trading and investment activities; and the provision of construction services, as well as in franchising business. In addition, it offers management and technical advisory services for the management and development of hotels and resorts; and general management and administrative services. The company was incorporated in 1970 and is based in Singapore. Amara Holdings Limited is a subsidiary of First Security Pte Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:37
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.