SGX:B9S

Stock Analysis Report

CosmoSteel Holdings

Executive Summary

CosmoSteel Holdings Limited, an investment holding company, engages in sourcing and distributing piping system components.

Rewards

Trading at 89% below its fair value

Became profitable this year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (SGD25M)



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: B9S has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.4%

B9S

4.6%

SG Energy Services

-0.1%

SG Market


1 Year Return

83.0%

B9S

15.9%

SG Energy Services

-2.7%

SG Market

Return vs Industry: B9S exceeded the SG Energy Services industry which returned 16.2% over the past year.

Return vs Market: B9S exceeded the SG Market which returned -2.7% over the past year.


Shareholder returns

B9SIndustryMarket
7 Day-4.4%4.6%-0.1%
30 Day-15.7%-1.6%-2.8%
90 Day1.2%32.1%0.07%
1 Year87.8%83.0%16.5%15.9%1.2%-2.7%
3 Year-30.5%-32.3%-41.4%-42.2%9.4%-2.2%
5 Year-76.0%-78.5%-73.6%-75.2%8.9%-9.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CosmoSteel Holdings 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: B9S (SGD0.09) is trading below our estimate of fair value (SGD0.78)

Significantly Below Fair Value: B9S is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: B9S is good value based on its PE Ratio (8.9x) compared to the Energy Services industry average (25.8x).

PE vs Market: B9S is good value based on its PE Ratio (8.9x) compared to the SG market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate B9S's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: B9S is good value based on its PB Ratio (0.3x) compared to the SG Energy Services industry average (0.7x).


Next Steps

Future Growth

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

35.7%

Forecasted Energy 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 CosmoSteel 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 CosmoSteel Holdings performed over the past 5 years?

-53.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: B9S has high quality earnings.

Growing Profit Margin: B9S became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: B9S has become profitable over the past 5 years, growing earnings by -53.4% per year.

Accelerating Growth: B9S has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: B9S has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (18.1%).


Return on Equity

High ROE: B9S's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CosmoSteel Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: B9S's short term assets (SGD78.5M) exceed its short term liabilities (SGD21.4M).

Long Term Liabilities: B9S's short term assets (SGD78.5M) exceed its long term liabilities (SGD7.6M).


Debt to Equity History and Analysis

Debt Level: B9S's debt to equity ratio (23.3%) is considered satisfactory.

Reducing Debt: B9S's debt to equity ratio has reduced from 65.5% to 23.3% over the past 5 years.


Balance Sheet

Inventory Level: B9S has a high level of physical assets or inventory.

Debt Coverage by Assets: B9S's debt is covered by short term assets (assets are 4.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: B9S is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: B9S is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.5%markettop25%5.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: B9S's dividend (2.91%) is higher than the bottom 25% of dividend payers in the SG market (2.56%).

High Dividend: B9S's dividend (2.91%) is low compared to the top 25% of dividend payers in the SG market (5.7%).


Stability and Growth of Payments

Stable Dividend: B9S's dividend payments have been volatile in the past 10 years.

Growing Dividend: B9S's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), B9S'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?

1.7yrs

Average board tenure


CEO

Jack Ong (41yo)

0.6yrs

Tenure

S$372,240

Compensation

Mr. Tong Hai Ong, also known as Jack, serves as Chief Executive Officer of Cosmosteel Holdings Ltd. since July 15, 2019 and served as its Director of Logistics & Operations until July 15, 2019. Mr. Ong joi ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD267.92K) is about average for companies of similar size in the SG market ($USD339.06K).

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Tong Hai Ong
CEO & Executive Director0.6yrsS$372.24k12.1% SGD3.0m
Osamu Murai
Executive Director1.7yrsS$336.00kno data
Beng Tin Low
Independent Non-Executive Chairman0yrsS$81.50kno data
Siok Chin Tan
Independent Director12.9yrsS$76.50k0.043% SGD10.7k
Siew Fu Hor
Independent Director1.3yrsS$18.75kno data
Hiromasa Yamamoto
Non-Executive Director0.6yrsno datano data

1.7yrs

Average Tenure

49yo

Average Age

Experienced Board: B9S's board of directors are not considered experienced ( 1.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: CosmoSteel Holdings Limited
  • Ticker: B9S
  • Exchange: SGX
  • Founded: 1984
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: S$24.974m
  • Shares outstanding: 290.40m
  • Website: https://www.cosmosteel.com

Number of Employees


Location

  • CosmoSteel Holdings Limited
  • 14 Lok Yang Way
  • Singapore
  • 628633
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
B9SSGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 2007
CMRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007

Biography

CosmoSteel Holdings Limited, an investment holding company, engages in sourcing and distributing piping system components. It operates through Energy, Marine, Trading, and Others segments. The company’s products include steel pipes, flanges, and fittings; and structural beams, channels, plates, flats, and hollow sections. It also offers electrical cables, switching and distributing systems, terminal and junction boxes and switches, light fittings, and isolators; and carbon, low temp carbon, stainless, duplex, and low alloys steel. In addition, the company provides customization, validation, testing, expedited delivery, and project management services. It serves companies in oil and gas, engineering and construction, petrochemical, power, shipbuilding and repair, manufacturing, and pharmaceutical industries, as well as traders. The company primarily operates in Brunei, Europe, Indonesia, Japan, Malaysia, the Middle East, Singapore, Thailand, Vietnam, Australia, China, and the Philippines. CosmoSteel Holdings Limited was founded in 1984 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:55
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.