Delfi (SGX:P34) - Share price, News & Analysis

Q: What is the Fair Price of P34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

P34 (SGD0.75) is trading below our estimate of [[fair value]] (SGD7.08)

P34 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

P34 Stock Overview

Delfi Limited, an investment holding company, manufactures, markets, distributes, and sells chocolate confectionery products in Indonesia, the Philippines, Malaysia, Singapore, and internationally.

Rewards

Trading at 89.5% below our estimate of its fair value

Earnings grew by 67.5% over the past year

Risk Analysis

Unstable dividend track record

Delfi Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Delfi
Historical stock prices
Current Share Price	S$0.74
52 Week High	S$0.96
52 Week Low	S$0.71
Beta	0.52
1 Month Change	0%
3 Month Change	-1.33%
1 Year Change	-21.99%
3 Year Change	-42.69%
5 Year Change	-62.75%
Change since IPO	-13.87%

Recent News & Updates

Apr 17

Delfi (SGX:P34) Is Increasing Its Dividend To S$0.021

Delfi Limited's ( SGX:P34 ) dividend will be increasing to S$0.021 on 13th of May. This takes the dividend yield from...

Apr 03

Delfi's (SGX:P34) Dividend Will Be Increased To S$0.021

Delfi Limited's ( SGX:P34 ) dividend will be increasing to S$0.021 on 13th of May. This takes the dividend yield from...

Shareholder Returns

	P34	SG Food	SG Market
7D	0.7%	-0.7%	0.2%
1Y	-22.0%	-8.2%	-3.4%

Return vs Industry: P34 underperformed the SG Food industry which returned -8.2% over the past year.

Return vs Market: P34 underperformed the SG Market which returned -3.4% over the past year.

Price Volatility

Is P34's price volatile compared to industry and market?
P34 volatility
P34 Average Weekly Movement	3.2%
Food Industry Average Movement	5.2%
Market Average Movement	4.8%
10% most volatile stocks in SG Market	11.1%
10% least volatile stocks in SG Market	2.2%

Stable Share Price: P34 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: P34's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1984	n/a	John Chuang	https://www.delfilimited.com

Delfi Limited, an investment holding company, manufactures, markets, distributes, and sells chocolate confectionery products in Indonesia, the Philippines, Malaysia, Singapore, and internationally. Its products include molded chocolates, dragees, enrobed wafers, biscuits, chocolate spreads, baking condiments, and beverages. The company also distributes a range of food, healthcare, and other consumer products, including agency brands; and provides management consulting and administrative services.

Delfi Fundamentals Summary

How do Delfi's earnings and revenue compare to its market cap?
P34 fundamental statistics
Market Cap	US$328.47m
Earnings (TTM)	US$29.28m
Revenue (TTM)	US$405.13m

11.2x

P/E Ratio

0.8x

P/S Ratio

Is P34 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
P34 income statement (TTM)
Revenue	US$405.13m
Cost of Revenue	US$285.42m
Gross Profit	US$119.71m
Other Expenses	US$90.43m
Earnings	US$29.28m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.048
Gross Margin	29.55%
Net Profit Margin	7.23%
Debt/Equity Ratio	4.2%

How did P34 perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

49%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is P34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for P34?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for P34. This is calculated by dividing P34's market cap by their current preferred multiple.
What is P34's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$328.47m

P34 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/Revenue	0.6x
Enterprise Value/EBITDA	4.7x
PEG Ratio	32.6x

Price to Earnings Ratio vs Peers

How does P34's PE Ratio compare to its peers?

P34 PE Ratio vs Peers

The above table shows the PE ratio for P34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.9x

Forward PE

Price-To-Earnings vs Peers: P34 is expensive based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

How does P34's PE Ratio compare vs other companies in the SG Food Industry?

Price-To-Earnings vs Industry: P34 is expensive based on its Price-To-Earnings Ratio (11.2x) compared to the SG Food industry average (8.7x)

Price to Earnings Ratio vs Fair Ratio

What is P34'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.

P34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.2x
Fair PE Ratio	7.7x

Price-To-Earnings vs Fair Ratio: P34 is expensive based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (7.7x).

Share Price vs Fair Value

What is the Fair Price of P34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: P34 (SGD0.75) is trading below our estimate of fair value (SGD7.08)

Significantly Below Fair Value: P34 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: P34 is poor value based on its PEG Ratio (32.6x)

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Future Growth

How is Delfi forecast to perform in the next 1 to 3 years based on estimates from 2 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

0.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: P34's forecast earnings growth (0.3% per year) is below the savings rate (1.8%).

Earnings vs Market: P34's earnings (0.3% per year) are forecast to grow slower than the SG market (12.6% per year).

High Growth Earnings: P34's earnings are forecast to grow, but not significantly.

Revenue vs Market: P34's revenue (5.5% per year) is forecast to grow slower than the SG market (7.8% per year).

High Growth Revenue: P34's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: P34's Return on Equity is forecast to be low in 3 years time (10.6%).

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Past Performance

How has Delfi performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: P34 has high quality earnings.

Growing Profit Margin: P34's current net profit margins (7.2%) are higher than last year (4.5%).

Past Earnings Growth Analysis

Earnings Trend: P34's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: P34's earnings growth over the past year (67.5%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: P34 earnings growth over the past year (67.5%) exceeded the Food industry 7.9%.

Return on Equity

High ROE: P34's Return on Equity (12.2%) is considered low.

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Financial Health

How is Delfi's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: P34's short term assets ($238.6M) exceed its short term liabilities ($111.0M).

Long Term Liabilities: P34's short term assets ($238.6M) exceed its long term liabilities ($13.6M).

Debt to Equity History and Analysis

Debt Level: P34 has more cash than its total debt.

Reducing Debt: P34's debt to equity ratio has reduced from 26% to 4.2% over the past 5 years.

Debt Coverage: P34's debt is well covered by operating cash flow (766.9%).

Interest Coverage: P34's interest payments on its debt are well covered by EBIT (92x coverage).

Balance Sheet

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Dividend

What is Delfi 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
Future Dividend Coverage

4.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: P34's dividend (4.37%) is higher than the bottom 25% of dividend payers in the SG market (2.34%).

High Dividend: P34's dividend (4.37%) is low compared to the top 25% of dividend payers in the SG market (6.22%).

Stability and Growth of Payments

Stable Dividend: P34's dividend payments have been volatile in the past 10 years.

Growing Dividend: P34's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.1%), P34's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.5%), P34'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?

3.3yrs

Average management tenure

CEO

John Chuang (73 yo)

17.58yrs

Tenure

Mr. Tiong Choon Chuang, also known as John, has been Group Chief Executive Officer of Delfi Limited since November 5, 2004 and serves as its Managing Director. Mr. Chuang is responsible for the overall st...

Leadership Team

Experienced Management: P34's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: P34's board of directors are seasoned and experienced ( 21 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31