SGX:M05

Stock Analysis Report

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Executive Summary

MTQ Corporation Limited, together with its subsidiaries, provides engineering solutions for oilfield equipment in Singapore, the Kingdom of Bahrain, Australia, the United Kingdom, and Indonesia. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: Insufficient data to determine M05's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine M05's volatility change over the past year.


Market Performance


7 Day Return

11.1%

M05

5.5%

SG Energy Services

5.0%

SG Market


1 Year Return

-7.4%

M05

-19.7%

SG Energy Services

23.7%

SG Market

Return vs Industry: M05 exceeded the SG Energy Services industry which returned -19.7% over the past year.

Return vs Market: M05 underperformed the SG Market which returned 23.7% over the past year.


Shareholder returns

M05IndustryMarket
7 Day11.1%5.5%5.0%
30 Day16.3%12.0%20.5%
90 Day47.1%16.8%27.0%
1 Year-2.6%-7.4%-19.4%-19.7%28.4%23.7%
3 Year-25.9%-36.7%-51.3%-51.9%57.9%42.3%
5 Year-35.0%-44.4%-70.5%-71.3%100.9%72.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MTQ 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: M05 (SGD0.25) is trading below our estimate of fair value (SGD3.14)

Significantly Below Fair Value: M05 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: M05 is poor value based on its PE Ratio (7.1x) compared to the SG Energy Services industry average (5.9x).

PE vs Market: M05 is good value based on its PE Ratio (7.1x) compared to the SG market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate M05's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: M05 is overvalued based on its PB Ratio (0.8x) compared to the SG Energy Services industry average (0.4x).


Next Steps

Future Growth

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

21.7%

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 MTQ 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 MTQ performed over the past 5 years?

36.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M05 has a large one-off gain of SGD2.6M impacting its September 30 2020 financial results.

Growing Profit Margin: M05's current net profit margins (11.5%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: M05 has become profitable over the past 5 years, growing earnings by 36.1% per year.

Accelerating Growth: M05's earnings growth over the past year (579.6%) exceeds its 5-year average (36.1% per year).

Earnings vs Industry: M05 earnings growth over the past year (579.6%) exceeded the Energy Services industry 2.9%.


Return on Equity

High ROE: M05's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is MTQ's financial position?


Financial Position Analysis

Short Term Liabilities: M05's short term assets (SGD56.8M) exceed its short term liabilities (SGD13.5M).

Long Term Liabilities: M05's short term assets (SGD56.8M) exceed its long term liabilities (SGD23.1M).


Debt to Equity History and Analysis

Debt Level: M05's debt to equity ratio (20.5%) is considered satisfactory.

Reducing Debt: M05's debt to equity ratio has reduced from 42.6% to 20.5% over the past 5 years.

Debt Coverage: M05's debt is well covered by operating cash flow (75.1%).

Interest Coverage: M05's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: M05's dividend (4%) is higher than the bottom 25% of dividend payers in the SG market (2.13%).

High Dividend: M05's dividend (4%) is low compared to the top 25% of dividend payers in the SG market (4.94%).


Stability and Growth of Payments

Stable Dividend: M05's dividend payments have been volatile in the past 10 years.

Growing Dividend: M05's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), M05'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?

7.0yrs

Average management tenure


CEO

Boon Wee Kuah (53 yo)

10.5yrs

Tenure

S$431,000

Compensation

Mr. Boon Wee Kuah has been the Group Chief Executive Officer of MTQ Corporation Limited since July 1, 2010 and has been its Managing Director of Oilfield Engineering Division Operations since December 1, 2...


CEO Compensation Analysis

Compensation vs Market: Boon Wee's total compensation ($USD325.76K) is about average for companies of similar size in the SG market ($USD384.35K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Boon Wee Kuah
Group CEO10.5yrsS$431.00k3.55%
SGD 1.8m
Ian Robert Hortin
Managing Director of Premier Sea & Land Pte Ltd and Mid-Continent Distribution Pte Ltdno dataS$449.00kno data
Hai York Tan
Managing Director of MTQ Engineering Pte Ltdno dataS$242.00kno data
Sumardi Bin Sidi
Managing Director of Pemac Pte Ltd4.42yrsS$195.00kno data
Asif Salim Vorajee
General Manager of MTQ Oilfield Services W.L.L.no dataS$302.00kno data
Lee Fang Tan
Group Financial Controller & Company Secretary7yrsno datano data

7.0yrs

Average Tenure

Experienced Management: M05's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Boon Wee Kuah
Group CEO10.5yrsS$431.00k3.55%
SGD 1.8m
Kok Kim Kuah
Non-Executive Chairman8.25yrsS$216.00k25.35%
SGD 13.2m
Soo Lin Chew
Independent Director8.67yrsS$47.00kno data
Han Siong Ho
Non-Executive Non-Independent Director13.25yrsS$38.00kno data
Nicholas Campbell Cocks
Lead Independent Director7.67yrsS$34.00kno data
Eng Yaw Ong
Non-Executive Non-Independent Director4.25yrsS$34.00kno data

8.5yrs

Average Tenure

55yo

Average Age

Experienced Board: M05's board of directors are considered experienced (8.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MTQ Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MTQ Corporation Limited
  • Ticker: M05
  • Exchange: SGX
  • Founded: 1959
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: S$51.875m
  • Shares outstanding: 216.15m
  • Website: https://www.mtq.com.sg

Number of Employees


Location

  • MTQ Corporation Limited
  • 182 Pandan Loop
  • Singapore
  • 128373
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
M05SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

Biography

MTQ Corporation Limited, together with its subsidiaries, provides engineering solutions for oilfield equipment in Singapore, the Kingdom of Bahrain, Australia, the United Kingdom, and Indonesia. It offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 11:08
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.